Yanko Hristozov
Some Key Issues Regarding the Provision of Solvency
in the Enterprise
Summary:
Liquidity indicators are among the most common and popular financial indicators of solvency in the enterprise. Besides the most commonly used liquidity ratios, the financial cycle provides an additional opportunity to measure the period of total asset turnover and solvency of the company. The purpose of this article is to outline some major issues related to ensuring solvency by taking a range of measures. The problem with the supply of liquidity often stands open for most economic agents, especially during the financial and economic crisis of 21st century. The tasks which are placed are: identification of best practices and formulation of innovative methods in managing the financial cycle in the enterprise and liquidity in general. The research thesis is supported by the claim that liquidity ratios do not provide sufficient information about the payment status of the enterprise for not con-sidering the period of turnover. It is therefore necessary to analyze the state of the financial cycle and implement measures in relation to the improvement of both indicators.
