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A poor standard
Rating agency Standard & Poor’s has recently released guidelines totest liquidity that could be an efficient probe into company finances. BrettHumphreys looks at how S&P has arrived at its calculations, asks if the liquiditymeasures are too conservative and suggests ways that they might be improved
![liquidity-gif liquidity-gif](/sites/default/files/styles/landscape_750_463/public/import/IMG/851/76851/liquidity-gif0750-580x358.gif.webp?itok=efVMJNVX)
Rating agency Standard & Poor’s has recently unveiled a new survey designed to evaluate the liquidity of a company. Specifically, this test determines if a company has secured sufficient liquidity to operate under various stress scenarios. While this is a commendable effort that may provide great insight into corporate finances, it may be worthwhile to reconsider the actual parameters used in the liquidity calculation. Doing so may improve the effectiveness of the test and provide a
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