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What is relationship between liquidity profitability and solvency?
Wiki User
∙ 11y ago
If liquidity inceases profitability decreases so there is inverse relationship
Wiki User
∙ 11y ago
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What is the difference between Liquidity and Solvency?
Liquidity is all about cash and assets near to cash (assets that can be easily converted to cash with incurring minimum cost), while Solvency is the ability of a business entity to meets its debts and financial obligations as they mature. In another word, Liquidity is cash on hand and Solvency is ability to pay debts.
Explain the relationship between liquidity and profitability for a bank?
Profitability is the difference between income and expense. Liquidity is the ability to turn assets in to cash quickly. Vault cash is the most 'liquid' asset. Stocks and bonds are liquid because they can be sold immediately; real estate is 'illiquid' because it may take a long time to sell. Note that 'liquid' does not mean you can sell at a profit, or even at fair market value, just that it can quickly and easily be sold for cash.
Liquidity and yield analysis?
what is the comparison between liquidity & yield analysis ??????
The purpose of secondary trading is to?
Provide liquidity and competiton between investments.
What is the difference between liquidity and equity?
Starting from your basic accounting balance sheet, you have 3 categories: Assets, Liabilities, and Equity. Your equity is the difference between your Assets and your liabilities. Liquidity refers to how easy you can convert an asset into cash. Houses would be illiquid and things like stocks are probably more liquid.
What is the difference between Liquidity and Solvency?
Liquidity is all about cash and assets near to cash (assets that can be easily converted to cash with incurring minimum cost), while Solvency is the ability of a business entity to meets its debts and financial obligations as they mature. In another word, Liquidity is cash on hand and Solvency is ability to pay debts.
How do banks achieve a balance between profitability and liquidity?
fully discription of ii
What is the difference between profitability and liquidity?
liquidity is how quickly an item can be converted to cash, usually to pay short term debts, profitability is how much money an entity has after taking sales revenue - cost of goods sold...so gross margin
What is the relationship between the yield and liquidity of securities?
kmkm
Explain the relationship between liquidity and profitability for a bank?
Profitability is the difference between income and expense. Liquidity is the ability to turn assets in to cash quickly. Vault cash is the most 'liquid' asset. Stocks and bonds are liquid because they can be sold immediately; real estate is 'illiquid' because it may take a long time to sell. Note that 'liquid' does not mean you can sell at a profit, or even at fair market value, just that it can quickly and easily be sold for cash.
The relationship between current assets and current liabilities is important in evaluating a company's?
Liquidity
How could the return on assets indicator provide relevant data on the profitability of a company?
The Return on Assets Indicator or ROA shows the relationship between a company's profits to its actual assets. It is a measure of the company's profitability.
The trade off between profitability and risk is?
trade off between ris and profitability
Liquidity and yield analysis?
what is the comparison between liquidity & yield analysis ??????
What is the difference between Solvency and insolvency?
The difference between solvency and insolvency is that the former describes the state of being able to pay one's debts. whereas the latter describes one's state of being unable to pay.
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?
What are the importance of commodity exchange?
Several importances of commodity exchange include a fair relationship between a cash and futures market, leveraging, price risk management, price discovery, and liquidity.
