After having discussed the key concepts of financial analysis, Alain Luminel, head of the Financial Analysis Division at Ellisphere, proposes to return this time to the concept of corporate liquidity.
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.
