I want to understand how to assess the liquidity of an asset. What are the factors or criteria that help in determining the liquidity? How can I evaluate if an asset is liquid or not?
7 answers
BitcoinWizardry
Fri Nov 29 2024
The current ratio serves as a comprehensive indicator.
KatanaSwordsmanshipSkill
Fri Nov 29 2024
It is derived by dividing current assets by current liabilities.
TaekwondoMasterStrength
Fri Nov 29 2024
This calculation provides insight into a company's financial health.
CryptoTrader
Fri Nov 29 2024
Specifically, it indicates the ability to meet short-term obligations.
Raffaele
Thu Nov 28 2024
A current ratio above 1 is considered favorable.