Business Liquidity Ratio

(All Questions Required)

Assessing your liquidity ratio can provide further clarity around your cash flow position. A liquidity ratio can vary between industries however, as a rule of thumb, a liquidity ratio that is less than 1, suggests cash flow problems. The question is whether cash flow problems are endemic. Please enter the relevant information below to calculate your approximate liquidity ratio.

Current Assets (Enter Amount $)

Cash:

Debtors:

Stock:

Investment:

Liabilities (Enter Amount $)

Employees and Superannuation entitlements:

ATO:

Trade Creditors:

Loan/s repayable in the next twelve months:

WARNING

Based on your disclosure, your liquidity ratio is less than 0.5 suggesting the business is insolvent and unable to pay its debts as and when due.

As a director you may also have personal exposure for continuing to trade the business whilst insolvent.

This website has been specifically designed to create a low cost liquidation solution for companies in your position. Click here to see if you are eligible for our low cost or no cost liquidation package.

Disclaimer

WARNING

Based on your disclosure, your liquidity ratio is in the range of 0.5 to 0.99 suggesting the business cannot pay, or is experiencing difficulty in paying, its debts as and when they fall due.

It also suggests the business maybe cash flow insolvent and may, in the absence of a capital injection to return the business to solvency, need to go into liquidation.

This website has been specifically designed to create a low cost liquidation solution for companies in your position.

If you wish to proceed with the liquidation process click here.

If you would like to obtain further advice as to your options, contact us.

CONGRATULATIONS

Based on the information disclosed, your liquidity ratio is greater than 1.00 which suggest the business has the ability to pay its debts as and when due and is probably not cash flow insolvent.

However, should you feel this result is inconsistent with actual business performance and would like to obtain further advice as to your options please feel free to contact us.