GREY:CHALF - Post by User
Post by
Here4thekekson Jan 18, 2022 12:30pm
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Post# 34329007
Low liquidity & no profits makes stock a risky investment
Low liquidity & no profits makes stock a risky investmentLow liquidity makes CHALF highly risky
A company's liquidity indicates its ability to pay debt obligations, or current liabilities, without having to raise external capital or take out loans. High liquidity means that a company can easily meet its short-term debts while low liquidity implies the opposite and that a company could imminently face bankruptcy. (solvency).
Creditors and investors like to see higher liquidity ratios, such as 2 or 3. The higher the ratio is, the more likely a company is able to pay its short-term bills. But, when credit flow dries up, it can have disastrous effects on the financial system as a whole. In the worst-case scenario, customers get wind of the problem and there's a run on the bank until there's no cash left to withdraw.
CHALF Liquidity
Current Ratio 0.53
Quick Ratio 0.29
Cash Ratio 0.08 https://www.wsj.com/market-data/quotes/CHALF/financials