6468090 - able to recover his money So liquidity forms a...

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For credit analysis, is the focus on the company’s growth or liquidity and why? Answer In case of credit analysis, it is extremely important to focus on the liquidity of the firm along with its growth. This is mainly because even if a firm prospers and does not have liquidity, the creditor will not be
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Unformatted text preview: able to recover his money. So, liquidity forms a major component of credit analysis, where as the growth component is considered only to know its future prospects and chances of recovery of money being bright, but the focus is on liquidity....
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