companydata.dkLiquidity ratio (likviditetsgrad)
The liquidity ratio (likviditetsgrad) shows a company's ability to pay its current liabilities with its current assets. It is calculated as current assets divided by current liabilities, multiplied by 100.
Where the solvency ratio measures long-term resilience, the liquidity ratio measures short-term payment ability: can the company cover the bills falling due within the next year?
How the liquidity ratio is calculated
Liquidity ratio = current assets / current liabilities × 100. A liquidity ratio of 100% means current assets exactly cover current liabilities; above 100% there is a buffer.
Interpretation
A liquidity ratio above 100-150% is often considered comfortable, but the level depends on the business model — companies with fast turnover can operate fine at lower ratios. Persistently low liquidity combined with losses is a classic prelude to payment problems.
Related terms
Current assets (omsætningsaktiver)
Current assets (omsætningsaktiver) are assets not intended for lasting use, expected to be converted to cash within a short period — typically inventory, trade receivables, and cash.
Liabilities (gældsforpligtelser)
Liabilities (gældsforpligtelser) are the company's debt to banks, suppliers, public authorities, and other creditors. They are split into current liabilities (due within one year) and long-term liabilities.
Solvency ratio (soliditetsgrad)
The solvency ratio (soliditetsgrad) shows how large a share of a company's assets is financed with equity. It is calculated as equity divided by the balance sheet total, multiplied by 100.