RŮČKOVÁ, Petra. Analysis of the Relation Between Liquidity and Selected Indicators From the View of Solvency in Selected Business Branches. PROCEEDINGS OF THE 14TH INTERNATIONAL CONFERENCE ON FINANCE AND BANKING. KARVINA: SILESIAN UNIV OPAVA, SCHOOL BUSINESS ADMINISTRATION KARVINA, 2014, p. 354-365.
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Basic information
Original name Analysis of the Relation Between Liquidity and Selected Indicators From the View of Solvency in Selected Business Branches
Authors RŮČKOVÁ, Petra.
Edition PROCEEDINGS OF THE 14TH INTERNATIONAL CONFERENCE ON FINANCE AND BANKING, KARVINA, SILESIAN UNIV OPAVA, SCHOOL BUSINESS ADMINISTRATION KARVINA, 2014.
Other information
Original language English
Type of outcome Article in a journal
Confidentiality degree is not subject to a state or trade secret
Organization unit School of Business Administration in Karvina
UT WoS 000345575000040
Keywords in English liquidity; claims; liabilities; supplier credit time; development of the economic cycle
Changed by Changed by: doc. Ing. Petra Růčková, Ph.D., učo 48730. Changed: 21/10/2021 11:31.
Abstract
From the view of the everyday operation of a company, the basic risk is customer's insolvency. For this reason when analysing companies, it is necessary to mainly focus on securing of a liquid position of a company. Liquidity is usually measured by means of many indicators from which the most persuasive being considered quick ratio (L2 - acid test). The paper deals with the relation of liquidity and indicators which participate on the assessment of solvency of a company. The attention was drawn to the liability turnover time, claim turnover time and supplier credit time. The aim of the paper is to evaluate whether the situation of liquidity in the Czech Republic is similar to the situation in the rest of Europe and, whether the prolonged due date of liabilities is caused by the potential of insolvency or by unwillingness to pay. In this context we will verify the hypothesis that financial deferment of payments is caused by insufficient liquidity in individual business branches. A partial aim is a finding whether the global economic situation influences the development of liquidity. This fact will be verified on the relation of quick ratio L2 and development of gross domestic product in the Czech Republic from 2000 to 2011.
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