THE LIQUIDITY RATIOS AND THEIR SIGNIFICANCE IN THE FINANCIAL EQUILIBRIUM OF THE FIRMS

Ciprian Dan Costea () and Florin Hostiuc ()
Additional contact information
Ciprian Dan Costea: Vasile Goldis West University of Arad, Satu Mare branch , Romania
Florin Hostiuc: Alexandru Ioan Cuza University of Iasi, Romania

The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, 2009, vol. 9, issue 1(9), 252-261

Abstract: The year of 2008 was an important inflection point of the world’s economy evolution. Most of the economists talk about a banking crisis, some of them talk about a financial crisis, and a part of them agree that we are facing also a liquidity crisis. Following this idea, the objective of this working paper is to analyze the liquidity ratios and their significance in the financial equilibrium of the firms. The working paper points out the most important liquidity ratios: general liquidity ratio, intermediar liquidity ratio, fast liquidity ratio, acid test, their indicated values, the importance of using the quick-selling value in calculating the ultimate liquidity ratios, the connection of this ratios with the economic equilibrium of the firms. The conclusions underline the importance of permanent monitoring the liquidity ratios, interpreting their values facing the economi c branch the firms are dealing in, and the importance of deep and detailed financial analysis using the ultimate liquidity ratios

Keywords: liquidity; liquidity ratios; quick liquidity ratios; quick -selling value; financial equilibrium (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.seap.usv.ro/annals/arhiva/ANNALS%20VOL.9,NR.1(9),2009%20fulltext.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:scm:ausvfe:v:9:y:2009:i:1(9):p:252-261

Access Statistics for this article

The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration is currently edited by Editura Universitatii Stefan cel Mare din Suceava

More articles in The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration from "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration Contact information at EDIRC.
Bibliographic data for series maintained by Liviu Scutariu ().