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Posts tagged as “liquid assets”

Financial KPIs

Financial KPIs, or Key Performance Indicators, are a set of metrics used to measure a company's financial health, performance, and progress toward its goals. They are essential tools for business owners, managers, and investors to gain insight into profitability, liquidity, and operational efficiency.

Bank Runs Are Contagious

This creates a problem because banks operate on a fractional reserve system, meaning they don't keep all of their deposits in cash on hand. Instead, they lend out a majority of that money to borrowers or invest it in other assets.

Z-Score Model

The Z-Score model, most famously the Altman Z-Score, is a statistical model used to predict the likelihood of a company going bankrupt within a certain timeframe, typically two years.