Liquidity and Net asset value: Difference between pages

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1.  
(NAV).  


An asset's ability to be turned into cash quickly and without significant loss compared with current market value.
1.


A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.


2.  
The current balance sheet of the business would normally be the starting point for a net asset valuation.


An entity’s ability to pay its obligations when they fall due, especially in the short term.
The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.  


Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).


3.


An entity's ability to source additional funds to meet its obligations, including in the medium and longer term.
2.


 
Similar valuation methods applied to other entities.
4.
 
A financial measure designed to measure an entity's ability to meet its obligations when they fall due.
For non-financial organisations, simple measures of liquidity include the ''current ratio'' and the ''quick ratio''.
 
For banks and other financial institutions, liquidity measures include those which identify how long the bank could survive if wholesale funds were to dry up and retail funding was heavily stressed.




== See also ==
== See also ==
* [[Authorisation]]
* [[Accumulating net asset value]]
* [[Authority limits]]
* [[Book value]]
* [[Cash and cash equivalents]]
* [[Constant net asset value]]
* [[Cash forecasting]]
* [[Low-volatility NAV]]
* [[Cash pool]]
* [[Variable net asset value]]
* [[Current ratio]]
* [[Deep market]]
* [[Headroom target]]
* [[Illiquid]]
* [[Liquidation]]
* [[Liquidity preference]]
* [[Liquidity management]]
* [[Liquidity premium]]
* [[Liquidity risk]]
* [[Money management]]
* [[Quick ratio]]
* [[Run]]
* [[Security]]
* [[Solvency]]
* [[Supply chain finance]]
* [[CertICM]]
* [[Yield]]
 
 
=== Other resources ===
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]


[[Category:Liquidity_management]]
[[Category:Investment]]

Revision as of 11:06, 26 February 2020

(NAV).

1.

A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.

The current balance sheet of the business would normally be the starting point for a net asset valuation.

The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.

Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).


2.

Similar valuation methods applied to other entities.


See also

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