answersLogoWhite

0

The position of a company is an ability to convert an asset into cash quickly. The degree to which an asset or security can be bought or sold in the market without affecting its price.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

How can a company improve its liquidity position?

How can the liquidity position of a company be improved


What is Net Liquidity Balance?

The net liquidity of a position (s) is the cash balance + unrealized g/l.


What is the liquidity position of the firm?

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.


Objectives of cash management?

•To find out the liquidity position of the concern through ratio analysis. •To study the growth of RaneMadras Private Ltd.in terms of cash flow statement. •To know the short term Solvency Position of the company.


Meaning of liquidity in relation to economy crises presently?

Liquidity refers to the availability of cash for the industries & the general public for their day to day financial needs. Liquidity in this economic crisis situation is very tight and people are finding it difficult to raise cash for their requirements.


What is the meaning of liquidity ratio?

It is the amount which a bank has to maintain in the form of cash, gold or approved securities. it is presently 25%.


What is a palindrome meaning equal in position?

Level is a palindrome meaning equal in position.


What does fixs mean?

The meaning of fixed is to fasten in a secured position.


What is the meaning of 'statutory liquidity ratio'?

It is the amount which a bank has to maintain in the form of cash, gold or approved securities. it is presently 25%.


What are the reasons for the change of liquidity ratios?

Liquidity ratios can change due to various factors, including shifts in a company's operational cash flow, changes in current assets and liabilities, and fluctuations in market conditions. For instance, an increase in short-term debt or a decline in cash and cash equivalents can lead to lower liquidity ratios. Additionally, strategic decisions, such as expanding inventory or investing in long-term assets, can impact liquidity. Economic factors, like interest rate changes or consumer demand, can also influence a company's liquidity position.


Factors affecting firm liquidity?

Firm liquidity is influenced by several key factors, including cash flow management, inventory levels, and accounts receivable turnover. Effective cash flow management ensures that a company can meet its short-term obligations, while excessive inventory can tie up resources and reduce liquidity. Additionally, the efficiency in collecting receivables impacts the availability of cash, as slower collection can lead to liquidity challenges. External factors such as market conditions and access to credit also play a significant role in a firm's liquidity position.


Why might a profitable business face liquidity problems?

No liquidity