What stock can be considered as illiquid in your company: calculation techniques

Abstract

Purpose: to desctibe the management of illiquid stock in various companies. Discussion: determining which exactly assets can be considered as illiquid stock substantially depends on the specifics of the company’s activities. For example, relatively simple criteria which can be applied in commerce at the same time cannot be applied in industrial service companies. In this regard, it seems necessary to identify illiquid stock calculation techniques that would be relevant to various activities. Results: the author formulate principal characteristics of illiquid stock and offer various calculation techniques based on well-known and some non-standard indicators that can be applied depending on the type of company’s activity.