Calculating Liquid Assets

Calculating  Liquid Assets

LIQUID ASSETS

See whether the amount of liquid assets (indicating the company's immediate financial strength) shows a high figure in relation to total current assets, and also in relation to current liabilities. If so, observe that this is reflected in the share price on the market; if not, the share is undervalued, since the company is favourably placed to effect acquisitions of subsidiaries, etc., without resort to

borrowing. An efficient management would not leave an abnormally high figure of liquid assets under-employed for long, but would use such assets more profitably through expansion.

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International Publishing Corporation:: The world's largest publishing organisation con-trolling over 200 newspapers, magazines and periodicals including the Daily Mirror. Dominant place in women's magazine market and trade journal field. Website and directory publishers.