What is 'liquidity' in SAP SRD-CRM - CRM-Customer Relationship Management?

liquidity - Overview

• Component: SRD-CRM

• Component Name: CRM-Customer Relationship Management

• Description: A measure of the ability to quickly turn assets into cash.

liquidity - Details

• 
  Key Concepts: 
  Liquidity is a term used to describe the ability of a company to meet its financial obligations. In SAP Customer Relationship Management (CRM), liquidity is a measure of the company's ability to pay its bills and other financial obligations on time. It is calculated by taking into account the company's current assets, liabilities, and cash flow. 
  
  How to use it: 
  In SAP CRM, liquidity can be used to assess the financial health of a company. It can be used to determine whether or not a company has enough cash on hand to pay its bills and other financial obligations. It can also be used to assess the risk associated with investing in a particular company. 
  
  Tips & Tricks: 
  When assessing liquidity, it is important to consider both short-term and long-term liabilities. Short-term liabilities are those that must be paid within one year, while long-term liabilities are those that must be paid over a longer period of time. Additionally, it is important to consider the company's cash flow when assessing liquidity. 
  
  Related Information: 
  In addition to liquidity, other financial metrics can be used to assess the financial health of a company. These include profitability, solvency, and efficiency ratios. Additionally, it is important to consider the company's debt-to-equity ratio when assessing its financial health.