The relationship between liquidity and solvency of an enterprise: theoretical and practical analysis
Abstract
The purpose of this article is a comparative analysis of liquidity and solvency as components of the assessment of an organization’s financial condition. The methodological basis comprises scientific works and periodicals in the field of liquidity and solvency assessment. The article compares two main indicators of financial condition assessment — solvency and liquidity — and analyzes liquidity as the foundation of solvency. The author concludes that both liquidity and solvency are necessary for assessing the financial condition of an organization, and these indicators should be considered in interrelation.
Fields of Study & Subjects
Working Capital and Financial Performance
Financial Distress and Bankruptcy Prediction
Education and Professional Development
Publication details
- Journal / source
- Entrepreneur’s Guide
- Publisher
- Publishing Agency Science and Education
- Volume
- 19
- Issue
- 1
- Pages
- 9–13
- Publication date
- 1 March 2026
- Language
- RU