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Balance Sheet Liquidity, Efficiency and Solvency Ratios

Calculate liquidity, working capital, and solvency ratios to assess efficiency and balance sheet strength.

This video takes a deep dive into how well a company manages its operational liquidity and working capital, breaking down key metrics like inventory, receivables, and payables. You’ll learn how to interpret the cash conversion cycle, understand liquidity and solvency ratios, and assess their implications on financial health. Through comparisons between Tata and Tesco, the session shows how these insights reveal the efficiency of day-to-day operations and long-term risk. This knowledge is incredibly useful if you’re evaluating creditworthiness or managing financial strategy—it helps you spot strengths, weaknesses, and potential funding gaps.

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Foundations of Corporate Credit Risk Analysis

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