Define liquidity in your own words and discuss how you would evaluate the liquidity of a company.

DQ1

Assessment Description

Ratios are simply the relationship of one number to another. We are looking at many ratios in this topic that give us an idea of how profitable, liquid or solvent, a company is. A ratio by itself tells only part of a story. It is important to see a trend as well. Pick two ratios that were discussed this week and explain what they tell us about the company. Additionally, discuss what a trend of these ratios will tell that a single ratio cannot. Participate in follow-up discussion by discussing your ratios in comparison to those of a classmate..

DQ2

Assessment Description

Define liquidity in your own words and discuss how you would evaluate the liquidity of a company. In your opinion, is it possible for a company to be too liquid? Give reasons for your rationale. Participate in follow-up discussion by adding additional information in support of or in disagreement with fellow classmates’ reasonings. Remember to use a professional tone.