LIQUIDITY ANALYSIS OF NON-MANUFACTURING ENTERPRISES
Authors
Keywords
financial management, financial analysis, financial condition, financial ratios, liquidity
Abstract
Economic analysis is a basic tool of business management, financial analysis being one of its structural parts. When assessing the financial condition of business organizations, liquidity analysis indicators are important. They are also widely used in discriminating financially stable enterprises from business organizations at an increased risk of bankruptcy. The present paper aims to calculate mean values of some of the most commonly used liquidity analysis indicators. The research is based on information from the financial statements of non-manufacturing enterprises, some of which are financially stable, and some are declared bankrupt. As a result of the study, it is concluded that the usefulness of liquidity indicators depends on their individual capabilities, the socio-economic conditions in which the study is conducted, and the aims of the analysis.
Pages: 15
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