less risk for the lender (liquidity) -> less collateral and information required.
No liquidity
Liquidity is basically how much cash is available.
How can the liquidity position of a company be improved
what is the comparison between liquidity & yield analysis ??????
liquidity position of a firm is the amount of liquid assets ,that is, cash ,bank balance and those assets which can be converted into cash as and when required by the firm which is owned by the firm currently.
less risk for the lender (liquidity) -> less collateral and information required.
No liquidity
Liquidity is basically how much cash is available.
How can the liquidity position of a company be improved
what is the comparison between liquidity & yield analysis ??????
Liquidity
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.
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.
ORDER OF LIQUIDITY is when items on a balance sheet are listed in order of liquidity. After cash, the other current assets are listed in order of liquidity or nearness to cash (i.e. Accounts Receivable first, then Inventory).
is the drain of excess liquidity from the money market
In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.