For this new series of Expert Insights, Alain Luminel, head of the Financial Expertise Division at Ellisphere, invites you to discover the key concepts surrounding the concept of corporate liquidity and to test your knowledge with a quiz.


Liquidity, a vital indicator to monitor

In the context of the Covid-19 crisis, marked by declining revenues and artificially maintained margins, the analysis of the liquidity of companies' balance sheets takes on its full meaning.

Thanks to the benefit of EMPs, most companies maintained a very decent reduced operating cash flow ratio in 2020. This partly explains the low level of business failures in the last year.

In 2021 and especially 2022, the markers of this ratio will be to follow, especially that of inter-company credit. Indeed, companies will have to combine profitable and responsible business growth, which is never easy during an economic recovery.

Expert's view: what is liquidity on a company's balance sheet?

Expert's view: what are the key elements of liquidity?

Test your knowledge of corporate liquidity!

Think you've got it all figured out? Test your knowledge now with our quiz and feel free to share it.