Corporate Liquidity During the Covid-19 Crisis: The Trade Credit Channel

Bureau, Benjamin; Duquerroy, Anne; Vinas, Frédéric

doi:10.2139/ssrn.3982197

Cited by 1 publication

(1 citation statement)

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“…Liquid assets play an essential role in maintaining the liquid position of any firm. They are always reported first in the balance sheet according to their easiness of converting into cash, for example, money, accounts receivable and inventory in almost every manufacturing firm (Bureau et al, 2024). Nujure (2020) explained that Liquidity may be defined as a firm's competency to pay its current liabilities and easily convert current assets into cash exclusive of getting lost.…”

Section: Literature Reviewmentioning

confidence: 99%

A Comparative Financial Liquidity Analysis of Fatima and Fauji Fertilizer Companies Limited

Ul Hussain Dehraj,

Memon,

Khan Bohio

et al. 2024

J. Asian Dev. Studies

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The primary purpose of this research is to reasonably study the liquidity position of two major organizations in the fertilizer sector, namely Fatima and Fauji Fertilizer Companies Limited. The annual secondary panel data was taken from 2010 to 2018. For that, annual published reports were collected from the official website of the State Bank of Pakistan. The Excel tool analyzed the data through tables and bar graphs. However, the results concluded that the financial position of Fauji fertilizer was better in terms of liquidity management than Fatima fertilizers. Therefore, Fatima Fertilizer is advised to improve its liquidity position, which may simultaneously reduce its business risk. Otherwise, it will be damaging to its business. However, liquidity plays an essential role in business, so both companies must invest in the most liquid assets, such as the T- bills and other marketable securities, to improve their liquidity position. Finally, both companies must try to improve their net profit as well.

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Section: Literature Reviewmentioning

confidence: 99%