Solvency and liquidity in the time of COVID-19
Channel: JustOneLap
Date: 2020-05-21

With COVID-19 shutting down more than half the planet, the gradual reinstatement of services and reopening of businesses will most likely result in balance sheets coming under severe pressure.

Balance sheets are at the heart of any company financials, and from that, we get solvency (debt) and liquidity (cash). In extraordinary times these are now critical. What does debt look like in terms of rates and expires, and how strong is cash flow?

To help understand what to look for and how to spot survivors from those under real threat, Keith McLachlan from Alpha Asset Management unpacks solvency and liquidity, helping you to better understand the risks to a listed company’s balance sheet during this pandemic.