What is net liquid assets in SAP LOD-CRM - Large Enterprise on Demand Customer Relationship Management?

SAP Term: net liquid assets

• Component: LOD-CRM

• Component Name: Large Enterprise on Demand Customer Relationship Management

• Description: The amount of a company's liquid assets that would remain if all of the company's current liabilities were paid off.

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• Key Concepts: 
  Net liquid assets refer to the total amount of liquid assets that a company has available to cover its short-term liabilities. Liquid assets are those that can be quickly converted into cash, such as cash, marketable securities, and accounts receivable. Net liquid assets are calculated by subtracting a company's total liabilities from its total liquid assets. 
  
  How to use it: 
  In SAP LOD-CRM Large Enterprise on Demand Customer Relationship Management, net liquid assets can be used to measure the financial health of a company. It is important to monitor net liquid assets in order to ensure that a company has enough liquidity to cover its short-term liabilities. 
  
  Tips & Tricks: 
  It is important to remember that net liquid assets do not include long-term assets such as property, plant, and equipment. Additionally, it is important to note that net liquid assets can be affected by changes in the market value of a company's liquid assets. 
  
  Related Information: 
  Net liquid assets are an important metric for assessing a company's financial health and should be monitored regularly. Other metrics that can be used to assess a company's financial health include current ratio, quick ratio, and debt-to-equity ratio.