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 »

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 There are four main types of financial... More » 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 » 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 » Business & Finance Financial Calculations

The criteria by which investment companies are rated are leverage, liquidity, cash flow coverage of fixed costs and historical investment performance. They are also rated on the management expertise, "key man" risk, dive... More » Business & Finance Investing

Profit is how much money a business is making once all expenses have been deducted; cash is the amount of money on hand to pay due bills. According to entrepreneur Stever Robbins, even a profitable business can fail if t... More »