Liquidity is a measure of your company's ability to pay off its short-term liabilities - those that will come due in less than a year. It’s usually shown as a ratio or a percentage of what the company owes against what it owns. These measures can give you a glimpse into the financial health of your company.
Uncertain times often bring great uneasiness with predicting the financial outlook and development of a business. One of the fundamental questions to consider here is liquidity – and, particularly, will the trends that you observe lead to a crunch point? If so, when? And which factors could influence your situation, either for better or for worse?
With our tool, you can quickly receive a simulation of how your business situation could develop.
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