Is it possible to assess the competitiveness of the company

How to evaluate the competitiveness of the company

In order to assess the possibility of a particular company regarding its ability to repay the debt, liquidity ratios are used.

Most often, the current liquidity coefficient is used, which is calculated according to the special formula. Its value is equal to the ratio of current assets to current passions, which are short -term obligations. Respectively, the higher its indicator, the higher the level of solvency of the enterprise. This indicator is used to assess the current solvency of the enterprise, as well as in case of unforeseen circumstances.