in this section you will learn all about KPI regarding Liquidity section in Dashboard.
You can access the Liquidity segment by clicking the "Liquidity" in dashboard as below.
There are 2 KPI related to liquidity such as;
Working Capital
Definition : Working capital measures a company's ability to meet its short-term obligations and manage its cash flow effectively. If a company's working capital is positive, it has enough liquid assets to meet its short-term liabilities. Having this information can help companies avoid financial distress such as missed payments, defaults, or bankruptcy.
Important : Indicates whether a company can meet its short-term obligations.
Formula : Current Assets - Current Liabilities
Working Capital Ratio
Definition : Shows a company’s short-term liquidity. Generally, a current ratio below one may be a warning sign that the company doesn’t have enough convertible assets to meet its short-term liabilities.
Important : A broad measure of liquidity, showing how easily a business can cover its short-term debts.
