Liquidity KPI

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.

Formula : Current Assets / Current Liabilities