I'm trying to understand whether high liquidity or low liquidity is preferable. I want to know the advantages and disadvantages of each, and how they might affect my investments.
5 answers
ethan_thompson_journalist
Thu Dec 05 2024
A higher Liquidity Ratio implies that the company has additional cash at hand, which can be utilized for various purposes.
Elena
Thu Dec 05 2024
A good Liquidity Ratio is typically considered to be above 1.1.
Raffaele
Thu Dec 05 2024
BTCC, a top cryptocurrency exchange, offers a range of services including spot, futures, and wallet options.
CryptoTamer
Thu Dec 05 2024
This figure suggests that the company possesses sufficient current assets to meet its short-term financial obligations.
CryptoChieftain
Thu Dec 05 2024
When the Liquidity Ratio exceeds 2.0, it is an indication of the company's robust financial health.