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Key Liquidity and Solvency Ratios

  • Yannick Coulon
Chapter
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Abstract

The third chapter examines the liquidity and solvency of a company. Although different in nature, these ratios are very much interrelated as they both address a company’s creditworthiness.

Short case studies and illustrations help the reader understand these concepts. Key takeaways on liquidity/solvency ratios and their limitations conclude the chapter.

Keywords

Liquidity Cash ratio Quick ratio Current ratio Solvency 

References and Further Reading

  1. Anthony, Robert N., and James S. Reece. 1989. Accounting: Text and Cases. Irwin.Google Scholar
  2. Coulon, Yannick, January 2017, Guide pratique de la finance d’entreprise, Gualino.Google Scholar
  3. ———. September 2018, L’essentiel des ratios financiers, Maxima Laurent du Mesnil.Google Scholar
  4. Quiry, Pascal, and Yann Le Fur. 2019. Finance d’entreprise 2020 de Pierre Vernimmen. Dalloz.Google Scholar
  5. Stowe, John D., Thomas R. Robinson, Jerald E. Pinto, and Dennis W. McLeavey. August 2002. Analysis of Equity Investments: Valuation. AIMR and CFA Institute.Google Scholar
  6. Thibierge, Christophe. November 2013. Comprendre toute la finance, 2ème édition. Vuibert.Google Scholar
  7. Walsh, Ciaran. 2008. Key Management Ratios, 4th ed. Financial Times Series. FT Prentice Hall. Pearson Education Limited.Google Scholar

Copyright information

© The Author(s) 2020

Authors and Affiliations

  • Yannick Coulon
    • 1
  1. 1.Brest Business SchoolBrittanyFrance

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