Notion and methods of measurement of enterprise financial liquidity

• Main Authors: Zbigniew Gołaś, Anna Witczyk
• Format: Article
• Language: English
• Published: University of Life Sciences in Poznań 2010-01-01
• Series: Journal of Agribusiness and Rural Development
• Subjects: financial liquidity; ratio analysis; current assets; cash flow; working capital
• Online Access: http://www.jard.edu.pl/tom15/zeszyt1/art_7_pl.pdf

The article shows methods of assessment of the financial liquidity of an enterprise. Static, dynamic and non-classic methods of the financial liquidity assessment have been shown. The following static methods are discussed: construction and information content of current indicator, rapid indicator and indicator of an instant liquidity. In the case of dynamic part, indicators were shown of cash efficiency and sufficiency i.e. criteria of financial liquidity assessing based on the financial circulations. Moreover, chosen methods were mentioned of the financial liquidity assessment, which are less frequently used in practice, which are called non-classic.