What to do if liquidity ratio is low?
My company's current liquidity ratio is unexpectedly low, indicating potential cash Flow problems. I'm seeking advice on effective strategies to improve this ratio and ensure our financial stability.
What is a good liquidity ratio?
Could you please elaborate on what constitutes a favorable liquidity ratio in the realm of finance and particularly within the context of cryptocurrency investments? How does it impact an investor's decision-making process and what are some key indicators to consider when assessing the liquidity of a given digital asset or platform?
Is 0.8 a good liquidity ratio?
Could you please elaborate on why you're asking if 0.8 is considered a good liquidity ratio? Liquidity ratios vary depending on the industry and company size, so it's important to understand the context. Additionally, a liquidity ratio of 0.8 might indicate that a company has a lower level of liquid assets compared to its short-term liabilities, which could potentially pose risks if the company needs to access cash quickly. Is there a specific scenario or context you're considering when asking this question?