Skip to main content

Featured Post

What Is a Ledger Wallet? Introduce Ledger Nano, Crypto Asset Storage That Is Safe And Can Be Taken Anywhere

Crypto asset owners are often worried about scamming and hacking. The high value and price of digital assets make crimes such as fraud, hacking, increasingly prevalent in cyberspace. But crypto owners don't need to worry anymore because there is a hardware wallet called Ledger Nano to store crypto assets safely and can be taken anywhere. Now, not only are physical assets such as banknotes, gold, and other important assets valuable, digital assets like crypto are also valuable. To keep safe from online criminal activity, Ledger Nano emerged to be used as a safe crypto repository. Ledger Nano is a popular hardware wallet in the world today. With this hardware, users can buy and secure crypto using the Ledger Live mobile app. Ledger Nano S supports Bitcoin, Ethereum, Ripple, EOS, Stellar, and others. Users can install three applications at once according to their needs. Ledger Nano S can store crypto assets offline, only the owner can access them. The hardware wallet is eq...

Understand Liquidity: The Function and Components

"Regarding the company's cash position and its ability to fulfill the obligations due at the time; the ability to fulfill the obligation to pay debts and so on time (about companies and so on)."

"The ability to fulfill all obligations that must be repaid immediately in a short time; a company is said to have a liquid if it has a payment instrument in the form of a smooth asset that is greater than all the obligations (liquidity)."

Understand Liquidity
Liquidity

What is Liquidity?

Liquidity is the company's ability to fulfill its obligations, which is also used to show financial position or company wealth. Usually, the company's performance assessment will use an analysis of financial ratios, which then includes liquidity ratios.

If the level of liquidity of a company is high, the company's performance will be considered better. Conversely, if the level of liquidity is low, the company's performance will be considered poor. With high-level liquidity, a company can easier to get support from various parties such as financial institutions, creditors, and suppliers of raw materials.

Liquidity Function

The following is a liquidity function in the company:
  • Acting as anticipatory funds if there is a sudden need
  • Measure the availability of cash and cash equivalents to meet the short-term debt.
  • As an assessment material whether the company deserves a capital loan or investment.
  • To do everyday business activities
  • For banks, liquidity will make it easier for customers to withdraw funds.

Liquidity Component

Liquidity consists of three basic components according to Engle and Lange, namely density, depth, and resilience. The three are expected to maintain the level of liquidity and economic stability of a company or organization.
  1. Density. This inner density refers to the gap between the agreed price and the normal price of a product
  2. Depth. The difference between the amount or volume of products sold and purchased at a certain price level
  3. Toughness. The significant price change speed causes efficient prices after price irregularities or volatility occurs.

Comments