Liquidity ratios

What is meant by Liquidity ratios?

Liquidity ratios are financial metrics that measure and evaluate a company's liquidity. They provide insights into how well a company can meet its short-term liabilities and payment obligations without facing financial difficulties. Typical liquidity ratios include the liquidity ratio, cash ratio, and working capital.

Typical Functions of Software in the Area of Liquidity Ratios:

• Automatic Calculation: Automated calculation and updating of liquidity ratios based on the company's current financial data.
• Graphical Representation: Visualization of liquidity ratios over time to identify trends and developments.
• Custom Reports: Creation of custom reports that highlight various liquidity ratios and their significance to the company.
• Alert Functions: Setting up alerts and notifications for critical liquidity levels or changes.
• Integration with Accounting Software: Seamless integration with existing accounting and financial software for direct data capture and analysis.
• Scenario Analysis: Conducting scenario analyses to predict the impact of potential financial decisions on liquidity.
• Access Control and Security: Ensuring that only authorized users have access to sensitive liquidity data and maintaining the security of financial information.