Cryptocurrency Q&A
What are the three liquidity indicators?
What are the three liquidity indicators?
Chiara
Fri Jan 03 2025
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6 answers
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I'm trying to understand financial liquidity and I want to know what the three main indicators of liquidity are. I'm looking for specific measures or ratios that can help me assess a company's liquidity position.
6 answers
Claudio
Sun Jan 05 2025
Liquidity ratios are essential financial indicators used to evaluate a company's financial health.
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TaegeukChampion
Sun Jan 05 2025
Some of the most commonly used liquidity ratios include the quick ratio, current ratio, and days sales outstanding.
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GeishaMelody
Sat Jan 04 2025
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, such as cash, marketable securities, and accounts receivable.
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Riccardo
Sat Jan 04 2025
The current ratio, on the other hand, takes into account all current assets, including inventory and prepaid expenses, to assess a company's short-term liquidity.
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Giulia
Sat Jan 04 2025
Days sales outstanding, or DSO, indicates the average number of days it takes for a company to collect payment after a sale has been made.
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