?What is liquidity risk, and how does it impact a company

Liquidity risk is the risk that a company may not have enough cash or liquid assets to meet its short-term financial obligations. It can lead to financial distress or even bankruptcy if not managed effectively.

?What are some common measures used to assess liquidity in a business

Common liquidity measures include the current ratio (current assets/current liabilities), the quick ratio (quick assets/current liabilities), and the cash ratio (cash/current liabilities), among others. These ratios help evaluate a company's ability to cover short-term debts.

Liquidity Analysis Tutorial

What will you learn in this course?

Master how to evaluate company liquidity using key financial ratios and metrics for effective decision-making
Apply liquidity analysis techniques to assess financial health and identify potential cash flow issues in businesses

Interpret liquidity ratios such as current ratio, quick ratio, and cash ratio to inform investment and lending decisions
Utilize liquidity analysis tools to enhance risk management strategies and optimize working capital management

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Lessons | 2

00:06:16

What is liquidity

00:14:17

Solvency and liquidity

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4.5

123 Reviews

Camilo A. Empic

Informative.

2026-02-03

sowmya m

It was very informative. But if you could include more examples with calculation it would be more effective to understanding the concept of  solvency .

2026-01-11

Obidike Onyinyechi Josephine

Thanks

2025-12-30

THOMAS PHIRI

good

2025-12-24

Ahmed fathallh ben nasser

good

2025-11-06

Kujtesa Avdimetaj

Excellent

2025-10-31

Joanna Mucha

ok

2025-10-30

Samarange Nianga

Super cours

2025-10-03

Karthick GM

Provide with more examples

2025-09-14

safar Behdadkia

Very good

2025-08-27

ANDROMEDA C. J AKRONG

GOOD

2025-08-05

Muhammad Zayyanu Usman

Great

2025-06-25

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