This document discusses liquidity analysis and financial statement analysis of a company's short-term financial health and ability to meet its near-term obligations. It covers analyzing liquidity through cash flow analysis using EBITDA and liquidity reserves, operating working capital analysis of current assets and liabilities, coverage ratios of current assets to liabilities, and the operating cycle which measures the time between acquiring inventory and collecting cash from sales. The goal is to determine if the company can satisfy its short-term debt obligations from its normal business operations.

1. Financial Statement Analysis Chapter 7 Liquidity Bonsón, E., Cortijo, V., Flores, F. Content on this file is licensed under a Creative Commons Attribution Non-Commercial No Derivatives Works 3.0

5. Short-term debt to be satisfied Operating Working Capital and Operating cycle Cash flow and Liquidity reserves Trade and other payables Current tax liabilities Current liabilities (operating) Current provisions for employee benefits Other short-period provisions Other current financial liabilities Other current non-financial liabilities Liabilities included in disposal groups classified as held for sale Current liabilities (non-operating)

8. The special case of EBITDA

9. The special case of EBITDA EBITDA (cash approach)