0
If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.
What else can I help you with?
Why is profitability more important than liquidity?
If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.
In terms of liquidity merchandise inventory is more liquid than prepaid expenses?
More liquid than prepaid expenses
What makes some companies more profitable than others and what are the similarities and differences between profit and profitability?
what are the similarities and differences between profit and profitability?
In terms of liquidity merchandise inventory is more liquid than accounts receivable?
No according to my test reviews and checking the order in the statements
Is profitability more important than environment protection?
Profitability and environmental protection are both crucial, but their importance can depend on context. In the long term, prioritizing environmental protection can lead to sustainable profitability by ensuring resources remain available and reducing the risks associated with climate change. Balancing both is essential for a resilient economy and a healthy planet, as neglecting one can ultimately undermine the other. Therefore, a synergistic approach that integrates both profitability and environmental responsibility is often the most effective strategy.
What is relative liquidity?
Relative liquidity refers to the ease with which an asset can be converted into cash without significantly affecting its price. It compares the liquidity of different assets or markets, highlighting how some may be more readily tradable than others. For example, stocks of large companies typically have higher relative liquidity compared to those of smaller firms or less popular investments. Understanding relative liquidity is crucial for investors when making decisions about asset allocation and risk management.
What is liquidity surplus?
Liquidity surplus refers to a situation in which a financial institution, such as a bank, has more liquid assets available than required to meet its short-term obligations. This excess liquidity can arise from various factors, including higher deposits or lower loan demand. A liquidity surplus allows banks to manage risks more effectively, invest in new opportunities, or provide loans, thus supporting economic growth. However, if not managed well, it can lead to lower returns on assets.
For the NPV criteria a project is acceptable if the NPV is while for the profitability index a project is acceptable if the profitability index is?
less than zero, greater than the requred return
Why Cash regarded as more important than inventories?
Cash is often regarded as more important than inventories because it provides liquidity and flexibility for a business. Cash allows companies to meet immediate obligations, invest in opportunities, and navigate unexpected expenses. While inventories can be valuable assets, they are not as easily converted to cash and can incur holding costs, making cash a critical resource for operational stability and growth.
What does generosity is more important than possession mean?
It is more important to be giving than to receive.
How do you assess a company's profitability?
Profitability means ability of the entity to earn more than the costs they incurred on their business operation. Normally, the price of the good available for sale (unit per rate) is higher than its cost in order to earn profit. Thus, unit price - unit cost = profit
Why are institutional investors important in today business world?
They bring liquidity to the to the table. Which in turn enhances the process of cash flow to the business. One reason institutional investors are important to the current business world is that they can have more clout than individual investors. Because they can own large blocks off stock in a corporation, they can exercise more influence in how they company is run. Moreover, institutional investors are generally more knowledgeable than individuals and have the resources to follow and understand what a business is doing.
