LIQUIDITY RATING COMPANY Cover Image

EVALUAREA LICHIDITĂŢII ÎNTREPRINDERII
LIQUIDITY RATING COMPANY

Author(s): Daniel Brîndecsu-Olariu, Delia Anca Gabriela Gligor
Subject(s): Economy
Published by: Editura Universităţii Vasile Goldiş
Keywords: liquidity; payment capacity; insolvency risk; cost of capital; financial stability.

Summary/Abstract: The evaluation of the company’s payment capacity stands for one of the most important financial analysis criterion (and the reason for witch financial analysis was invented by banks almost 200 years ago). The liquidity analysis targets the company’s payment capacity in what concerns its short-term debt, a subject that we thought to be of great importance for the present condition of the economy. In this paper we have analyzed the most popular methods of liquidity evaluation, thus identifying their strengths and weaknesses. As a result of this analysis, we came up with several recommendations for improvement, suggesting both qualitative and quantitative approaches.

  • Issue Year: 20/2010
  • Issue No: 2
  • Page Range: 476-483
  • Page Count: 8
  • Language: Romanian