How to determine the level of solvency of the enterprise

Is it possible to find out about the solvency of the company

In the modern world, an enterprise is considered reliable, which is capable of in full and in a pre -agreed time or even earlier to fulfill all the obligations assumed.

To assess the possibility of a specific enterprise to repay all its financial obligations, an analysis of its liquidity is used. At the same time, liquidity is understood as the ability to quickly turn all its assets into cash. All assets available to the organization are put on its balance and, according to data used in accounting, have different liquidity. The easiest way to implement bank bills and securities. Also, a variety of loans and payables have a good liquidity. Inventories, equipment and incomplete construction have a significantly smaller liquidity level.