Happy to help, Craig! Thank you for watching and commenting. Here's the link to the sequel video on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
My 5 year old has understood this in relation to his toys and piggy bank; using the water and ice example! You are a genius mate... Best wishes from London
This was the best video ever on explaining this. Don't know why I couldn't have found this one first, went through so many videos... knowing someone somewhere had to have a SIMPLE video explaining this where people could understand. Thank you for taking the time out to make this video. You have made my investing/trading life much easier.
Welcome to my channel! :-) And thank you for the feedback. I have made a few videos with "balance sheet reviews" (walking through the balance sheet of well-known companies), I think you might enjoy those as well: ua-cam.com/video/ya7rRZJCLEc/v-deo.html
I appreciate how it was explained as varying degrees of how easy or technical cash conversion can occur, Rather than perceiving the term to mean 'either having cash or not having cash'. I understand it better now to be the rate of how technical or easy assets can be converted to cash. Familiar with the term but always wanted a more succinct grasp of it holistic meaning. Thankyou.
You're welcome! Thanks for the nicely worded feedback. I particularly love the phrase "a more succinct grasp of it holistic meaning". :-) Might use that somewhere in a video in the future. ;-)
You are most welcome, Shanti! Greetings back from the Netherlands. Please watch the follow-up video as well on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Enjoyed this video? Then please subscribe to the channel, and watch the related video the difference between solvency and liquidity (including a case study of the JC Penney bankruptcy): ua-cam.com/video/z4zrQ3saMsI/v-deo.html
I saw your videos they are simply awesome. Here I like to ask a question and hope with your powerful knowledge you can help to advice correctly and the the world of retail traders can benefit from your input. 1. FX Liquidity does not matter whether it is from closing a long or short position, it can be taken by MM/banker/Institution to open a long or short position. Is this statement true or false? 2. Because FX is a zero sum game, if the liquidity zone is worth USD$10.01m it cannot be taken one cent more or less it must be digested exactly with the same amount. Is this statement true or false?
You are most welcome, Bhagat! Thank you for watching and commenting. And if you liked this one, then take a look at the follow-up video on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Ik dacht eerst oh nee, een Nederlander die een Engelse uitleg gaat geven, dit ga ik niet uitkijken hoor. Maar ik was fout, je hebt een superduidelijke uitleg gegeven in heel verstaanbaar NederEngels. :) Thanks! Duimpje omhoog!
Thank you! Wonderful to hear that. I have recently made a follow-up video on solvency and liquidity, I think you might like that one too: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
@@TheFinanceStoryteller- Great thanks, I'll check it out. I'm taking my finances more seriously now and trying to save money using different avenues. I've been investing more lately using RH, Acorn, 401k, and my pension funds. Just a random question, if you don't mind the question while doing DD in stocks - what should I be looking for? I'm trying to navigate through your playlist right now, where should I start? would it be the annual reports? income statements, balance sheet and etc? Thanks again!
@@YoooPatrick Hello again, Patrick! Those are great questions, but they have no easy answers.... I think my video on how to read an annual report could help you start your analysis: ua-cam.com/video/Kw-1nopchnA/v-deo.html And my thoughts on how to build an investment portfolio: ua-cam.com/video/K4mWd2zBYVk/v-deo.html Plus a disclosure of my own portfolio (50/50 ETF / individual stocks): ua-cam.com/video/GBLNKbOgQ4w/v-deo.html
My pleasure, Alwyn! 😊 Check out the sequel as well, where the water vs ice metaphor is extended: solvency and liquidity ua-cam.com/video/z4zrQ3saMsI/v-deo.html
It means getting more liquidity into a company, or the economy in general. If the former (more liquidity into a company), we would be talking in accounting (balance sheet) terms about debit cash credit debt, or debit cash credit equity. If the latter, we would talk about central banks lowering interest rates and/or making it easier for commercial banks to borrow from them (by changing the conditions on e.g. collateral).
Thank you very much, Kaarthik! So happy to hear that! I think you will enjoy the related video on current ratio as well: ua-cam.com/video/dkiSWO2OYho/v-deo.html
@@TheFinanceStoryteller actually what i learn today i apply it on my activity via online since i do online class coz of the pandemic and im glad that i answer my questions because of your video.. Thanks a lot.
@@cinthjairehmumar Great to hear! Greetings back from the Netherlands. The Philippines is the 3rd largest country in terms of viewership on my channel, after USA and India. :-)
So liquidity is how easy it is to sell an investment without losing value. Money, bonds, index funds are highly liquid, but private investments like real estate & rare objects like books and cars are not.
Hi Terry! I think the term "liquidity injection" is mostly used in the context of Central Bank policy, or the relationship of a company with its shareholders/bondholders. It means providing the ability to borrow money (or raise other types of capital) easily.
Great to hear that, Matt! I made a follow-up video covering solvency and liquidity, including a case study on JC Penney: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Goods that you hold to sell.... finished goods ready to be purchased by customers, or raw materials that you need to produce products, or work-in-progress. Take a look at my video on inventory management to learn more: ua-cam.com/video/DZhHSR4_9B4/v-deo.html
Hello Brad! Liquidity is the availability of liquid assets to a company, market or trader/investor. If liquidity is lacking, you can't pay your bills (an urgent and important problem for some companies). Solidity (a term I don't use often) seems to be defined as equity as a percentage of total assets. In other words, how much of your total balance sheet is financed by equity (shareholder capital), which basically is your buffer against bankruptcy (making a loss eats into equity; if equity turns to zero then the company is bankrupt). Both liquidity (an indicator of immediate short-term financial health) and solidity (an indicator of longer-term financial health) are important. See also my video "what is equity": ua-cam.com/video/Q1z395u60xU/v-deo.html
most underrated heaven for beginner traders to learn about finance
Thank you, David! I have a "sequel" to this one: a solvency and liquidity case study ua-cam.com/video/z4zrQ3saMsI/v-deo.html
@@TheFinanceStoryteller how do you know what's on my assignments
@@vaderporpoise774 Pattern recognition! ;-)
Agreed 👍👍
This video is a fantastic explanation. I am a finance novice, and this was easy for me to understand. Thank you!
Happy to help, Craig! Thank you for watching and commenting. Here's the link to the sequel video on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
My 5 year old has understood this in relation to his toys and piggy bank; using the water and ice example! You are a genius mate... Best wishes from London
Start them young! :-) Thanks for the compliments. Greetings back from the Netherlands.
This was the best video ever on explaining this. Don't know why I couldn't have found this one first, went through so many videos... knowing someone somewhere had to have a SIMPLE video explaining this where people could understand. Thank you for taking the time out to make this video. You have made my investing/trading life much easier.
That is wonderful to hear. Hope you will find many more useful videos on my channel.
Thank you so much. I
I am going into my last year of accounting classes and I've never understood assets and liabilities in this context. thank you!
Welcome to my channel! :-) And thank you for the feedback. I have made a few videos with "balance sheet reviews" (walking through the balance sheet of well-known companies), I think you might enjoy those as well: ua-cam.com/video/ya7rRZJCLEc/v-deo.html
I appreciate how it was explained as varying degrees of how easy or technical cash conversion can occur, Rather than perceiving the term to mean 'either having cash or not having cash'. I understand it better now to be the rate of how technical or easy assets can be converted to cash. Familiar with the term but always wanted a more succinct grasp of it holistic meaning. Thankyou.
You're welcome! Thanks for the nicely worded feedback. I particularly love the phrase "a more succinct grasp of it holistic meaning". :-) Might use that somewhere in a video in the future. ;-)
Thank you so much for helping. You cleared my doubt in just 6 minute..your method is very easy to understand and interesting. Good luck from India.
You are most welcome, Shanti! Greetings back from the Netherlands. Please watch the follow-up video as well on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
This was one of the best method to understand liquidity from three perspectives
Glad to hear that!!!
Enjoyed this video? Then please subscribe to the channel, and watch the related video the difference between solvency and liquidity (including a case study of the JC Penney bankruptcy): ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Thanks I finally understand what is meant by liquid water ice and somewhere in between thanks for that
Happy to help, Thomas!!! I extend the metaphor in my discussion of solvency vs liquidity, aka the sequel: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Thanks A Lot!! Even the Best Examples couldn't have explained it as unequivocally as you have.
Thank you very much, Sarthak! That is a wonderful compliment.
Thanks from India.
You're welcome!
Excellent explanation. Thank you.
Glad you liked it! 🙂 Have a look at the sequel on solvency vs liquidity as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
really great explanations! good job
Thank you very much! It took me a while to put all the pieces together in my mind, but then the actual making of the video went fairly quick.
I saw your videos they are simply awesome. Here I like to ask a question and hope with your powerful knowledge you can help to advice correctly and the the world of retail traders can benefit from your input.
1. FX Liquidity does not matter whether it is from closing a long or short position, it can be taken by MM/banker/Institution to open a long or short position. Is this statement true or false?
2. Because FX is a zero sum game, if the liquidity zone is worth USD$10.01m it cannot be taken one cent more or less it must be digested exactly with the same amount. Is this statement true or false?
I am not answering homework questions for you.
what a informational video.. thank you , Sir.
Happy to hear that! Thank you for watching and commenting.
Wow.. Superb explanation sir. Thanks a lot for this video.
You are most welcome, Bhagat! Thank you for watching and commenting. And if you liked this one, then take a look at the follow-up video on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Great explanation!
Thank you!!! Have a look at the sequel on solvency vs liquidity as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
EXCELLENT my guy💯
Thank you!!! 🙂
Thank you. I appreciate your explanation.
You are welcome! Happy to help.
useful, thanks
Thank you for the great explanations.
Glad it was helpful! Check out the sequel as well on solvency vs liquidity ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Grate explanation. Go ahead!
Many many thanks! Have a look at the sequel covering solvency vs liquidity as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Ik dacht eerst oh nee, een Nederlander die een Engelse uitleg gaat geven, dit ga ik niet uitkijken hoor. Maar ik was fout, je hebt een superduidelijke uitleg gegeven in heel verstaanbaar NederEngels. :) Thanks! Duimpje omhoog!
Graag gedaan! :-)
thank you. you made it so much easier for me.
Happy to hear that! Thank you for watching and commenting.
Thank you you explained very clear.
You are welcome, Faarax! Thank you for watching.
Yay
This just explained everything!
Thanks, Brad! Take a look at the sequel as well: solvency and liquidity ua-cam.com/video/z4zrQ3saMsI/v-deo.html
The water example is just brilliant! Thank you!
You're very welcome, Jessie! I continue the water example in my case study on solvency vs liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Liked + Subscribe. I love the simplicity and usage of everyday examples.
Thank you! Wonderful to hear that. I have recently made a follow-up video on solvency and liquidity, I think you might like that one too: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
@@TheFinanceStoryteller- Great thanks, I'll check it out. I'm taking my finances more seriously now and trying to save money using different avenues. I've been investing more lately using RH, Acorn, 401k, and my pension funds. Just a random question, if you don't mind the question while doing DD in stocks - what should I be looking for? I'm trying to navigate through your playlist right now, where should I start? would it be the annual reports? income statements, balance sheet and etc?
Thanks again!
Thanks for the link, the caste study was very helpful.
@@YoooPatrick Hello again, Patrick! Those are great questions, but they have no easy answers.... I think my video on how to read an annual report could help you start your analysis: ua-cam.com/video/Kw-1nopchnA/v-deo.html And my thoughts on how to build an investment portfolio: ua-cam.com/video/K4mWd2zBYVk/v-deo.html Plus a disclosure of my own portfolio (50/50 ETF / individual stocks): ua-cam.com/video/GBLNKbOgQ4w/v-deo.html
Tha way you explain things is awesome 👌👌👌
Thank you very much, Pawan! Great to hear that. Please subscribe, and let me know which other topics you are interested in.
This was great !. Thanks.
Glad you enjoyed it! 🙂
Thanks for such great video lesson
You're welcome, Asir! Thank you for watching and commenting.
great content, and great interactions
Thank you for the kind words!!! :-)
Nice explanation
Thank you, Pramod! Take a look at the sequel as well, a case study on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Very easy to understand
Thanks for the feedback, Ramya! That's exactly what I was aiming for.
Thank you so much .. you're genius
Thank you very much for the kind words!!! Here's the link to the sequel on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Well explained my friend
Glad it was helpful! Check out the sequel on liquidity vs solvency as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Great explanation Of liquidity🙏
Thank you, Irfan! A very important concept to understand in these turbulent times.
Thank you
Welcome!
what a wonderful video.
So happy to hear that! Thank you very much for watching and commenting! :-)
Very informed video
Thank you very much, Jasmine! Check out the sequel on solvency and liquidity as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
this is gold tnx
Thank you!!!
Great video!
Thank you!
Well explained!!
Thank you very much! Happy to hear that. Take a look at the sequel on solvency and liquidity as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Wow...I really have no doubt after seeing this video...thank you...❤️
My pleasure, Alwyn! 😊 Check out the sequel as well, where the water vs ice metaphor is extended: solvency and liquidity ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Great video and great illustration.
Thank you very much, Heino! 🙂 Here's the link to the sequel on solvency and liquidity: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
Love from India...thanks
Greetings back from the Netherlands! 🙂
Thank you kind sir
You're welcome! :-)
This was so super helpful...thank you so much!!!
You're so welcome, Samriddhi! :-) Wonderful to hear that.
What is meaning of liquidity injection ? Kindly send reply sir
It means getting more liquidity into a company, or the economy in general. If the former (more liquidity into a company), we would be talking in accounting (balance sheet) terms about debit cash credit debt, or debit cash credit equity. If the latter, we would talk about central banks lowering interest rates and/or making it easier for commercial banks to borrow from them (by changing the conditions on e.g. collateral).
great explanation
Thank you very much, Kaarthik! So happy to hear that! I think you will enjoy the related video on current ratio as well: ua-cam.com/video/dkiSWO2OYho/v-deo.html
finally i get it, thanks a lot
Wonderful to hear that! Thank you for watching and commenting.
thank you so much..
it help me alot..
goodluck to me in my trading and god bless you sir in whatever you are trying to do in ure life
So nice of you! Thank you very much.
Defensive Internal Ratio - Can you please explain in a video. I appreciate your help and assistance Thank you :-)
Thanks for the suggestion! I have never heard of it before, so have no insights to offer on it.... Sorry!
Great video
Thank you for watching and commenting!
😍😍😍 thank you for the information.
My pleasure 😊
@@TheFinanceStoryteller actually what i learn today i apply it on my activity via online since i do online class coz of the pandemic and im glad that i answer my questions because of your video.. Thanks a lot.
@@TheFinanceStoryteller 😊😊😊
@@TheFinanceStoryteller from Philippines 🇵🇭 🇵🇭.. Small UA-camr also.. Thanks a lot ❤
@@cinthjairehmumar Great to hear! Greetings back from the Netherlands. The Philippines is the 3rd largest country in terms of viewership on my channel, after USA and India. :-)
thank you!!
You're welcome, Valeria!
So liquidity is how easy it is to sell an investment without losing value. Money, bonds, index funds are highly liquid, but private investments like real estate & rare objects like books and cars are not.
Mostly correct! I would "sharpen" your definition a little to "how easy it is to sell an investment on short notice without losing significant value".
really good way of explaining thank you
Thank you very much! Good to hear that.
What does liquidity injection mean?
Hi Terry! I think the term "liquidity injection" is mostly used in the context of Central Bank policy, or the relationship of a company with its shareholders/bondholders. It means providing the ability to borrow money (or raise other types of capital) easily.
Great explanations mate! nice job
Great to hear that, Matt! I made a follow-up video covering solvency and liquidity, including a case study on JC Penney: ua-cam.com/video/z4zrQ3saMsI/v-deo.html
What does inventories mean?
Goods that you hold to sell.... finished goods ready to be purchased by customers, or raw materials that you need to produce products, or work-in-progress. Take a look at my video on inventory management to learn more: ua-cam.com/video/DZhHSR4_9B4/v-deo.html
nice vid
Thank you, Derawa!
I like the way you explain
Thank you, Shruti!
Yes bro
What are solidity and liquidity are constant interaction?
I mean why not what
Hello Brad! Liquidity is the availability of liquid assets to a company, market or trader/investor. If liquidity is lacking, you can't pay your bills (an urgent and important problem for some companies). Solidity (a term I don't use often) seems to be defined as equity as a percentage of total assets. In other words, how much of your total balance sheet is financed by equity (shareholder capital), which basically is your buffer against bankruptcy (making a loss eats into equity; if equity turns to zero then the company is bankrupt). Both liquidity (an indicator of immediate short-term financial health) and solidity (an indicator of longer-term financial health) are important. See also my video "what is equity": ua-cam.com/video/Q1z395u60xU/v-deo.html
The Finance Storyteller Excellence of explanation
Be like water
- Bruce Lee
Good one!!!
We need video on wacc .
Thanks for the suggestion!
@@TheFinanceStoryteller and one more video Ev/Ebitda .
Well
Who come here after losing your life saving on luna
Sorry to hear that! Hope you will recover.
Jim! what the hell happen?!
Looks like he is wealthy, but "locked in". ;-)
useful, thanks
Glad it was helpful!
Excellent explanation thank you!
Nice to hear that! Have a look at the sequel as well: ua-cam.com/video/z4zrQ3saMsI/v-deo.html