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How can a company improve its liquidity position?

How can the liquidity position of a company be improved


Why corporate liquidity has been declining?

Corporate liquidity may be declining because revenues are declining. If a company isn't selling enough product, then they will likely borrow money, which reduces liquidity.


How can I determine who invested in a company?

To determine who invested in a company, you can look at the company's financial reports, press releases, or regulatory filings. These documents often disclose information about the company's investors and stakeholders. Additionally, you can research news articles or websites that track investments in the company to find more information about its investors.


Would you expect net income to be a good measure of a company's liquidity?

Generally I would not use Net Income as a measure of liquidity. Net Income is a good measure of profitability, but it does not indicate a company's ability to meet short-term obligations. Some good measures of liquidity include working capital, the current ratio, and the quick ratio.


Why a long term creditor should be interested in liquidity ratio?

A long-term creditor should be interested in the liquidity ratio because it indicates a company's ability to meet its short-term obligations, which is crucial for assessing overall financial health. A strong liquidity position suggests that the company can cover its immediate liabilities, reducing the risk of default. Additionally, understanding liquidity helps creditors evaluate how effectively the company manages its cash flow, which can impact its long-term viability and ability to honor long-term debts.

Related Questions

Provide the necessary information to determine the liquidity of a company?

Financial statements


What provide the nessary information to determine the liquidity of a company?

finanical statements finanical statements


How can a company improve its liquidity position?

How can the liquidity position of a company be improved


Why accounting information is necessity?

Accounting Information is necessery to know about the company's financial & liquidity postioon, so as to enable the management(owener/share holder) to act in accordence with the account information available to them.


Why corporate liquidity has been declining?

Corporate liquidity may be declining because revenues are declining. If a company isn't selling enough product, then they will likely borrow money, which reduces liquidity.


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.


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.


How can I determine who invested in a company?

To determine who invested in a company, you can look at the company's financial reports, press releases, or regulatory filings. These documents often disclose information about the company's investors and stakeholders. Additionally, you can research news articles or websites that track investments in the company to find more information about its investors.


What are the practical difficulties will a company experience when applying the solvency and liquidity test?

when there is financial distress in a company there is a need to perform a solvency and liquidity test consumes time and effort and that hinders the need for more capital.


Which investment has the least liquidity?

a share of pulicily traded company trading on the NYSE


How do you determine customers needs?

A company can determine the needs of a customer by carrying out these measures to obtain information such as: survey feedback and suggestion box this will determine the customer needs and make the company aware of the customer needs and satisfy them.


The relationship between current assets and current liabilities is important in evaluating a company's?

Liquidity