Liquidity is the ability of a company or country to meet its near-term cash flow requirements. Solvency is the ability for a company or country to meet its long-term financial obligations. More »

Liquidity ratios refer to a firm's ability to meet its immediate financial obligations in terms of cash on hand and assets that can be sold quickly, while solvency ratios compare a firm's total assets to its total obliga... More »

www.reference.com Business & Finance Financial Calculations

The five categories of financial ratios are liquidity (solvency), leverage (debt), asset efficiency (turnover), profitability and market ratios. These ratios measure the return earned on a company’s capital and the profi... More »

A cash flow statement illustrates the change in the position of cash and cash equivalents. A fund flow statement depicts the change in the working capital position of a firm between two balance sheet dates, which include... More »

Individuals use financial statement templates to create reports that evaluate the financial strength, performance and liquidity of a company, according to Accounting-Simplified.com. There are four main types of financial... More »

www.reference.com Business & Finance Financial Calculations

The indirect method for preparing a cash flow statement is used to show the uses and sources of cash by a business. It is the preferred method by most companies because the information required to prepare it is fairly ea... More »

www.reference.com Business & Finance Financial Calculations

Liquidity ratios refer to a firm's ability to meet its immediate financial obligations in terms of cash on hand and assets that can be sold quickly, while solvency ratios compare a firm's total assets to its total obliga... More »

www.reference.com Business & Finance Financial Calculations