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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.
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What is relationship between liquidity profitability and solvency?
If liquidity inceases profitability decreases so there is inverse relationship
Liquidity and yield analysis?
what is the comparison between liquidity & yield analysis ??????
Why do profitable businesses face liquidity problems?
Profitable businesses can face liquidity problems due to a mismatch between cash inflows and outflows. Even if a company is generating strong profits, it might still struggle to convert those profits into cash quickly enough to meet immediate obligations, such as payroll, supplier payments, or unexpected expenses. Additionally, factors like high levels of accounts receivable, slow inventory turnover, or significant capital investments can further strain cash flow, leading to liquidity issues despite overall profitability.
The purpose of secondary trading is to?
Provide liquidity and competiton between investments.
In examining the liquidity ratios the primary emphasis is the firm's?
In examining liquidity ratios, the primary emphasis is on the firm's ability to meet its short-term obligations and ensure adequate cash flow. Key ratios, such as the current ratio and quick ratio, assess the relationship between liquid assets and current liabilities. A strong liquidity position indicates financial health and reduces the risk of insolvency during periods of financial stress. Overall, these ratios are crucial for evaluating a company's short-term financial stability.
What is relationship between liquidity profitability and solvency?
If liquidity inceases profitability decreases so there is inverse relationship
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
The relationship between current assets and current liabilities is important in evaluating a company's?
Liquidity
Explain the relationship between staff and line authority?
what is the relationship between staff and line authority?
What relationship is between over-training and rice?
explain the relationship between overtraining and rice
Archimedes principle helps to explain the relationship between what?
Archimedes principle helps explain the relationship between weight and volume. The term is specific gravity.
How did the scientists explain the relationship between the colors observed and the structure of the atom?
Q 3. How did the scientists explain the relationship between the colors observed and the structure of the atom?
What is the relationship between viruses and backups in the computer world?
Explain the relationship between viruses and backups in the computing world.
Is Working capital is a measure of a company's profitability?
No, working capital is not a direct measure of a company's profitability. Instead, it represents the difference between current assets and current liabilities, indicating a company's short-term financial health and liquidity. While sufficient working capital can support operations and indirectly contribute to profitability, it does not directly assess a company's overall profitability, which is typically measured by metrics like net income or return on equity.
Explain the relationship between www and internet?
isn't it the same??
