Finance undoubtedly is a tricky subject due to the various conventions and modules. And one of the most challenging segments of Finance and Accounting is the chapter of Liquidity. But do not let the chapter hamper your academic performance for MyAssignmenthelp.com is here with Liquidity assignment help services from more than 5000 financial experts.
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Sums based on liquidity are all about numbers. One little mistake in a calculation of direct assets and your answer will come out wrong. Our liquidity assignment writers have been in the field of academic services for over a decade now, and they are quick and careful at the same time.
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Liquidity can be described as the degree to which an asset/security can be bought or sold in the market at its current prevailing price, thus reflecting its intrinsic value. For example, cash is the most liquid asset with debtors, collaterals, and stock the following suit. Other fixed assets like real estate, collectables, and certificates are all relatively illiquid.
Liquidity refers to the capacity of a company to convert current assets into cash easily without significant loss. The various types of liquidity methods are:
When it comes to investors and lenders, high liquidity reflects the healthy financial position of a company. At the same time, high liquidity also indicates that a firm has too much cash that could be utilized in other areas. Therefore, it is safe to say that the liquidity ratio of a company should fall within a specific range.
Liquidity risk arises when a party who is interested in selling an asset cannot do so due to the unavailability of demand for the asset in its intrinsic value. Liquidity risk can also happen due to market crashes in case of marketable security or shares. A firm can also be exposed to liquidity risk if the asset in question has a high depreciation rate.
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