Author name: ashikrahman

Understanding Liquidity and How to Measure It

Additionally, individuals can diversify their investments and ensure they have access to liquid assets or credit facilities to meet unexpected financial needs. Like banks, corporations may fund long-term assets like property, plant & equipment (PP&E) with short-term liabilities like commercial paper. Volatile cash flows from operations can make it difficult to service short-term liabilities. Liquidity …

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