main platforms in different countries – Marketplace Liquidity (2023)

In Europe, the e-commerce market is worth over $400 billion in revenue, with an expected annual growth rate of 7.3%. According to experts, in 2022 the volume of the European market will be more than 500 billion dollars.This is a lot considering the fact that there are 50 different countries in Europe, people speak more than 200 languages ​​and more than 28 currencies are used.

At the same time, it is clear that most of all activity in the online trading market takes place in just three European countries: the UK, Germany and France. However, the list also includes European marketplaces that are leading or growing in some other parts of the Old World.

General situation in the European online sales market

The European Union (excluding the UK) is the third largest e-commerce market in the world behind only America and China. Amazon and eBay continue to lead the market in continental Europe, as well as in the US and UK. If you look beyond them, you can see a huge number of alternative online platforms: all of these are European marketplaces of various sizes.

While Amazon and eBay sell across Europe as a whole, most local players are focused on just one country or a small number of closely related neighboring countries. It seems that when it comes to e-commerce, a significant part of the market in Europe is divided along the old geographic and linguistic lines, despite the single currency, open borders and thousands of common rules.

“eBay cannot be classified as a classic marketplace like Amazon, since some of the goods there are sold by private sellers using the auction model. On the other hand, a large part of the assortment is sold there according to the same scheme as on Amazon, Zalando and other analogues.”

These differences extend to the overall growth of online shopping in Europe. In Europe as a whole, Internet retail accounts for 16.2% of total retail. In Germany, this figure is 19.9%, and in Italy – only 6% – that is, less than a third of Germany’s share. Online shopping has become popular in some European countries, but differences in payment systems, delivery networks, culture and language mean that others are far behind.

On this page you will find detailed information about the most popular trading platforms in Europe. Individual online stores are not going anywhere. But an increasing number of small and medium-sized retailers are joining these platforms to better reach their target audience. Many of these stores end up being bought by one of the Amazon store acquisition companies. Many consumers no longer even search for a product on Google, they just go to their favorite marketplace and start searching there.

Great Britain

In the UK, local Amazon is the most popular shopping choice. And in general, it must be said that Amazon, and to be precise, its national divisions in total (British, French, German, etc.) is the largest marketplace in Europe. As for England, there are also 2 big local players there that are a popular destination for both online shoppers and retailers.


Initially, Fruugo comes from Finland (more about Finnish online stores with delivery to Russia and the CIS countries). But the marketplace, founded in 2006, is now a British company. The platform operates in 46 countries around the world. Retailers only pay when they make a sale, so there are no membership or subscription fees.


UK-based marketplace OnBuy launched in November 2016 and offers a platform where it doesn’t sell anything itself (“and we never will,” they promise). The website brings together over 3,000 sellers and 8 million buyers and requires a 5-9% sales fee and a 1.9-3.4% PayPal payment fee.


In Germany, the German branches of eBay and Amazon are very popular. But it is also home to large local marketplaces.

(Video) Jonathan Golden (NEA): 4 questions every marketplace needs to answer (Kaufland)

Supermarket chain Real has merged with online marketplace to become the 3rd largest online marketplace in Germany. With 19 million monthly visitors, (when you visit it will redirect you to Kaufland) hosts more than 12 million products. On, sellers must pay a subscription fee of 39.95 euros each month and a percentage depending on the product category. ,


Marketplace Otto is one of the largest German e-commerce companies.

This online hypermarket has over 1.8 million items from around 7,000 brands. It operates not only in Germany, but also in more than 20 other countries, most of which are in Europe. Merchants who wish to sell products through Otto’s online marketplace must pay a one-time registration fee of €10,000, with commission rates ranging from 15% to 50%. A lot, but there is no monthly fee.


The German marketplace Zalando has become one of the most popular marketplaces in Europe. Initially, it worked as an online fashion store selling items of various brands, but over time it turned into a marketplace. As of 2021, its divisions operate in 15 European countries. Brands that wish to sell their products through Zalando should be aware that products from categories other than apparel, footwear, sportswear and equipment, and accessories are not accepted. In other words, electronics, for example, cannot be put there. In addition, partners must offer free returns guaranteed for 100 days.

Other marketplaces in Germany to keep in mind: Yatego, DeWanda.


France is one of the top three countries in Europe with the most developed online commerce and marketplaces. Not only Amazon (whose homeland, we recall – the United States) has a large market share, but local platforms are also very popular.


The French marketplace Cdiscount was founded in 1998 and started as an online store selling technology and consumer goods. Today, the Cdiscount marketplace has 12,000 merchants and about 9 million active customers. Every month, 20 million people view over 63 million product card pages. Sellers must pay €39.99 per month plus sales commissions, depending on the type of item sold (5% or more).


Conforama is one of the largest European furniture and home furnishings retail chains. It was founded in 1967 as a regular chain of stores. Today it has offline stores in France, Spain, Portugal, Italy, Switzerland, Croatia, Luxembourg and Turkey. In 2016, the marketplace of the same name was opened.

Conforama provides about 1.5 million active offers of various products on the marketplace. It has an average of 4.4 million visitors per month (as of 2018). Sellers do not pay a monthly fee; The commission depends on the category of the product and depends on the selling price of the product plus shipping costs.


French marketplaces Fnac and Darty (the latter acquired by Fnac in 2016) are a combined electric retail company. In 2014, Fnac launched its own marketplace, where it sells both its own products and an assortment from third-party suppliers. Fnac and Darty have 36 million active customers and are a leader in high-tech, appliances and home goods not only in their home country but also among marketplaces in Europe as a whole. The monthly subscription price for merchants is €39.99, plus sales commission. Sellers can register on Darty and/or Fnac. ,

La Redoute

French retailer La Redoute, founded in 1837, is a retailer of clothing and home decor items. More than 7 million visitors enter the online store every month. It works in 26 countries of the world, there is delivery to Russia and the CIS. More than 450 third-party merchants are connected to the La Redoute marketplace, paying €49 per month plus sales commissions (between 8% and 20%).

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Shopping street

Rue du Commerce, founded in 1999, is a relatively small French marketplace specializing in consumer electronics. In terms of rating and popularity, it is somewhat inferior to other analogues. From 2016 to 2019 he was part of Carrefour, a large French supermarket chain. There is no fee for registering or listing products, but sellers must pay 40 euros per month. There is also a commission on sales depending on the product category.


The list of European marketplaces is continued by companies from the Netherlands. Despite the fact that the influence of large players from America (Amazon, eBay, etc.) is growing there, their own companies also continue to play an important role.

The Dutch marketplace, which started as a Bertelsmann project, has been the largest marketplace in the Netherlands for many years and is gaining popularity in Belgium. This is partly due to the thousands of merchants who have joined the platform and offer some 16 million items. There are no monthly fees or registration costs, but sellers must pay a commission for each item they sell through The commission is from 5% to 17% depending on the category.

The Dutch marketplace started out as a price comparison system but can now be considered an online marketplace. The marketplace website attracts around 4 million visitors each month and does not require a monthly sale fee. Sellers must pay a commission on the item sold, ranging from 1% to 15%.

Other marketplaces from the Netherlands to keep in mind are Blokker, VidaXL and FonQ.


Belgian e-commerce is gradually becoming more mature and less dependent on foreign retail sites. Although the Dutch is a very popular online shopping platform among Belgian consumers, the country still has a lot to offer in its own market.


The Belgian marketplace Storesquare was once a very powerful platform, but after 2019 it has slowed down somewhat. However, it allows 500 suppliers to sell a total of 1 million items. Retailers do not pay registration fees, but must pay a commission for each product sold (between 5% and 15%). They also need to pay a transaction fee of €1 per order.

Vanden Borre

The Belgian marketplace Vanden Borre is a multi-channel online consumer electronics retailer based in Belgium. It is visited by about 10 million visitors every month, who are mainly looking for audio products, televisions, multimedia and consumer electronics. Selling on Vanden Borre requires a monthly sale fee of €39.99 and a commission for each product sold ranging from 8% to 14%.


In Italy, international players have a great influence on the local e-commerce market. When we look at Italian e-commerce companies that also have a presence abroad, they are mostly fashion stores.


In 2015, the Italian online store ePrice opened its trading platform. Third party sellers pay a €29 subscription fee and a 5% to 8% commission on transactions only, depending on the product category. Subscriptions can be canceled at any time without any commitment to duration.


Online stores and marketplaces in Sweden are often a popular shopping destination for consumers, including those from neighboring Scandinavian countries. But local buyers love domestic marketplaces.

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Fyndiq is a popular marketplace from Sweden. In 2015, the company tried to expand into Germany, but closed its German office less than a year later. Sellers can apply for a free account with no monthly or registration fees. “The only thing you want is good quality products at the lowest price and you must be a seller from outside of Europe” is their policy. Fyndiq attracts 2 million visitors every month. Today there are about 1700 active sellers registered there.

Clothing on European marketplaces is not sold as often as electronics, household appliances or home and garden products.


Swedish marketplace Cdon started in 1999 as an online CD store. Now it is the largest department store in Scandinavia, with marketplace features. Independent sellers must display the same prices on the Cdon Marketplace as they would on their own online store. Lower prices are also allowed.


The Swedish marketplace Tradera is a popular online platform and classifieds site. Retailers who want to sell their products through Tradera get their own landing page. More than 3,000 companies have already joined the sales. The commission varies from 5% to 8% of the sale price. The price of the seller’s subscription fee per month depends on how many advertisements were placed.


Poland is not yet a mature e-commerce market, but it does have one big e-commerce company, Allegro. It is by far the most popular marketplace in Poland, which also has many foreign customers from other countries.


The Polish marketplace Allegro was founded in 1999 as an online auction site. For years, it was part of the renowned South African e-commerce group Naspers, but in October 2016, Naspers sold it to an alliance of investor funds. Over 125,000 SME merchants and retailers have signed up to sell over 1 million items in total. Sellers are allowed to sell new, refurbished, as well as used items. They need to pay a listing fee, a sales commission and a percentage of all commissions, depending on the number of successful sales.


Ceneo was founded in 2005 and is currently the second largest online marketplace in Poland. The platform is actually a price comparison service that features products from 18,000 online stores, but users can shop for these products using a virtual shopping cart. There is no monthly fee, but sellers must pay a commission, which differs for each product category.


Portugal is also not the most mature and popular market for e-commerce and marketplace sales in Europe, but it does have some interesting local players. Perhaps local players have been able to develop well for the reason that Amazon does not yet have an official division here.

words online

Worten Online is a very popular marketplace from Portugal. The company started as an electronics retailer (the first store opened in 1996) but has evolved into an online marketplace. Worten allows third party merchants to sell their products on the platform. In June 2019, the Portuguese company also launched a similar website in Spain.


Dott is another major representative of this industry from Portugal. It offers thousands of products divided into 17 categories. Established in 2018, the e-commerce platform delivers orders at home to customers and through more than 1,500 delivery locations across the country. Dott is part of Grupo CTT which operates as Portugal’s national postal service and is also a commercial group with subsidiaries active in industries such as banking and e-commerce. is a B2B e-commerce site. This facilitates sales by SMEs from Portugal to buyers from all over the world (to some extent, the local analogue of Alibaba). The company says their mission is to make it easy to do business with Portuguese brands and retailers. All sellers on the platform are legally registered companies, all licenses and contact persons are verified.

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In some respects, Switzerland is quite self-sufficient. This also applies to Swiss e-commerce. The industry has a good mix of foreign and local companies from the sector. According to a study by ZHAW and HWZ, about 35% of online stores additionally use marketplaces to increase sales.


The Swiss marketplace Ricardo is a very popular online trading platform. It was founded in 1999 and soon grew into a major online store. The marketplace allows its 2.3 million members to buy and sell both used and new items. Listing items on Ricardo is free, but sellers must pay a 9% commission on each sale.

Digitec, Galaxus

Other very popular online stores and marketplaces in Switzerland are and, which are part of Digitec Galaxus AG. Both online platforms offer a wide range of products. At the same time, Digitec is clearly focused on everything related to consumer electronics, and Galaxus can be considered as a one-stop shop on the Internet, selling everything from clothes and shoes to household goods. Retailers who wish to sell through this platform do not pay any basic fees, but must pay a commission for each item sold. For sellers from the European Union, Galaxus offers special functionality for customs clearance. ,


Romania is a country in the southeast of Europe. Consumers shop on overseas sites like Amazon and Aliexpress but also like to shop online from local players like Altex, OLX and eMAG.


The Romanian marketplace eMAG is the largest online store in its country. In 2015, this e-commerce company expanded by opening a site in Poland. She currently has online stores in Romania, Poland and Hungary. Retailers only need to pay for the items sold and can rely on marketing support from eMAG. As of the beginning of 2020, about 16,000 partner stores are connected to the marketplace, which features more than 4.4 million products. The site attracts about 500 thousand visitors daily.


The Romanian marketplace is an online store operated by Corsar Online. Today, about 400 thousand products have been added to the site. Third party retailers can register for free.


The Czech Republic has one of the fastest growing e-commerce markets in Europe. For the period 2017-2021. compound annual growth of 16% was projected. This is partly due to the growing popularity of marketplace trading platforms, both European and national.


The Czech marketplace Heureka claims to be the largest e-commerce platform in the markets of Central and Eastern Europe. The marketplace has several price comparison services such as Ceneje, Jeftinije, Heureka, and Compari. Heureka was founded in 2007 and has over 150 million product offerings. The website not only offers a price comparison, but also the ability to shop directly from Heureka.

If a customer buys something from a connected store through a shopping cart, Heureka charges the merchant a commission on purchases. This amount varies and depends on the name of the product category.

Marketplaces in Europe are playing an increasingly important role, and their market share will only grow. In addition to global players, many local trading platforms also successfully operate in European countries.


What is liquidity of the marketplace? ›

Marketplace liquidity is a metric that defines how successful your marketplace is and can be explained as the probability that each user on your marketplace, whether on the supply or demand side, can get what they came for.

How do you calculate liquidity in the marketplace? ›

They estimate the liquidity measure as the ratio of volume traded multiplied by the closing price divided by the price range from high to low, for the whole trading day, on a logarithmic scale. The authors use the price at the end of the trading period because it is the most accurate valuation of the stock at the time.

What is good liquidity marketplace? ›

Liquidity in a marketplace is the overall utilization rate of the available resources for sale. The more items or services booked in the shortest period equal better liquidity of a marketplace. Generally, the higher the liquidity, the better it is.

What is liquidity in ecommerce? ›

Liquidity is the lifeblood of marketplaces. It is the efficiency with which a marketplace matches buyers and sellers on its platform. One could say that a marketplace without liquidity has no real product because the ability to transact on the platform IS the product.

What affects market liquidity? ›

Additionally, liquidity also depends on many macroeconomic and market fundamentals. These include a country's fiscal policy, exchange rate regime as well the overall regulatory environment. Market sentiment and investor confidence are also key to improving liquidity conditions.

Who provides liquidity in the market? ›

Banks, financial institutions, and principal trading firms (PTFs) all act as liquidity providers in today's markets. The different business models and capabilities of these liquidity providers allow them to serve the market in different ways.

What is market liquidity and how is it measured? ›

Market liquidity – this is the measure of how efficiently a market (such as the stock market or forex market) enables participants to buy and sell assets at stable prices. It will be characterised by high trading volumes and a close bid-ask spread.

How do you determine liquidity? ›

Liquidity Ratios

The current ratio (also known as working capital ratio) measures the liquidity of a company and is calculated by dividing its current assets by its current liabilities.

How do you calculate liquidity examples? ›

Basic Defense Interval = (Cash + Receivables + Marketable Securities) ÷ (Operating expenses +Interest + Taxes)÷365 = (2188+1072+65)÷(11215+25+1913)÷365 = 92.27. Absolute liquidity ratio =(Cash + Marketable Securities)÷ Current Liability =(2188+65) ÷ 8035 = 0.28.

Which market has the most liquidity? ›

Forex is considered the most liquid market in the world due to the high volume and frequency with which it's traded. Governments, all major banks, insurance companies, investment houses, traders and even individuals going on holiday all contribute to the vast amount of trades that take place on the forex market daily.

Does Apple have good liquidity? ›

Apple (AAPL) also has a strong cash position on its balance sheet, with $173 billion in unrestricted cash that gives the tech giant an "unmatched liquidity profile with substantial financial flexibility."
About AAPL.
SymbolLast Price% Chg
AAPLPost150.59 150.40-1.49% -0.13%
Dec 21, 2021

How do I choose a good liquidity provider? ›

How to choose a Liquidity Provider and not regret it
  1. Stability. New, industry-shaking companies pop up all the time, but it is still a good idea to rely more on the established, experienced, and more mature business. ...
  2. Offering. ...
  3. Support. ...
  4. Trustworthiness. ...
  5. Pricing. ...
  6. Execution. ...
  7. Data and price feeds. ...
  8. Software.

What are the three types of liquidity? ›

The three types of liquidity ratios are the current ratio, quick ratio and cash ratio.

What is Amazon liquidity? ›

Current ratio can be defined as a liquidity ratio that measures a company's ability to pay short-term obligations. Amazon current ratio for the three months ending December 31, 2022 was 0.95.

Why is market liquidity so important? ›

Why is market liquidity so important? Market liquidity is important for a number of reasons, but primarily because it impacts how quickly you can open and close positions. A liquid market is generally associated with less risk, as there is usually always someone willing to take the other side of a given position.

What makes liquidity increase? ›

Key Takeaways

Ways in which a company can increase its liquidity ratios include paying off liabilities, using long-term financing, optimally managing receivables and payables, and cutting back on certain costs.

Why does the market need liquidity? ›

Trade Costs – Market liquidity is important as it impacts the costs to trade and therefore affects returns to investors. Higher spreads lead to higher transaction costs which cut into an investor's return.

What it means to provide liquidity? ›

Definition: Liquidity means how quickly you can get your hands on your cash. In simpler terms, liquidity is to get your money whenever you need it. Description: Liquidity might be your emergency savings account or the cash lying with you that you can access in case of any unforeseen happening or any financial setback.

How do you measure liquidity of a country? ›

The measures of monetary liquidity include base money and broader money aggregates, central bank assets, foreign exchange reserves, and official foreign exchange reserves as a percentage of the GDP.

What are the three ways to measure liquidity? ›

Current, quick, and cash ratios are most commonly used to measure liquidity.

How much liquidity is enough? ›

A Common-Sense Strategy. A common-sense strategy may be to allocate no less than 5% of your portfolio to cash, and many prudent professionals may prefer to keep between 10% and 20% on hand.

How to improve liquidity? ›

How can I improve my liquidity?
  1. Reduce debt. If you have outstanding liabilities pay them off as quickly as you can as this can improve your liquidity ratio.
  2. Avoid high-interest financing. ...
  3. Earn interest. ...
  4. Stay on top of invoicing. ...
  5. Inventory management. ...
  6. Reduce overheads.
Dec 2, 2022

How do you ensure sufficient liquidity? ›

Here are five ways to improve your liquidity ratio if it's on the low side:
  1. Control overhead expenses. ...
  2. Sell unnecessary assets. ...
  3. Change your payment cycle. ...
  4. Look into a line of credit. ...
  5. Revisit your debt obligations.

Which are the two basic measures of liquidity? ›

The two measures of liquidity are:
  • Market Liquidity.
  • Accounting Liquidity.

What two factors are considered in managing liquidity? ›

Assets and liabilities are the two important factors considered while managing liquidity. For banks, it has been observed that asset-based liquidity is more significant than liability-based...

What are all the types of liquidity ratios? ›

The three main liquidity ratios are the current ratio, quick ratio, and cash ratio.

Which country has most liquidity? ›

Monthly forex reserves in 82 countries and territories worldwide 2022. Of all the countries in the world, China had, by far, the largest international reserves in 2022, with 3.46 trillion USD in reserves and foreign currency liquidity.

Which crypto platform has most liquidity? ›

Coinbase. Coinbase is a leading crypto exchange liquidity provider with over $327 billion in quarterly trading volume and 73 million users across 100 countries. With an easy user interface, Coinbase provides an opportunity to buy and sell cryptocurrencies with just a few clicks.

What offers the most liquidity? ›

In contrast, cash is the most liquid asset possible. By this logic, the most liquid accounts are cash accounts, such as checking and savings accounts.

What is Coca Cola's liquidity? ›

Current and historical current ratio for CocaCola (KO) from 2010 to 2022. Current ratio can be defined as a liquidity ratio that measures a company's ability to pay short-term obligations. CocaCola current ratio for the three months ending December 31, 2022 was 1.15.

Which investments have high liquidity? ›

In order of liquidity, the most liquid investments include:
  • Money – actual cash currencies.
  • Money market assets – short-term debt securities such as CDs or T-bills.
  • Marketable securities – stocks or bonds.
  • US Government bonds – only if the maturation date is one year or less.
  • Mutual funds or exchange-traded funds (ETFs)

What is the best form of liquidity? ›

Cash and cash-like assets are considered the most liquid. But some types of securities are relatively liquid too. Marketable securities are ones that are easy to sell and convert into cash while holding their value. Common stocks and public bonds are typically the most-liquid types of securities.

What are the two most popular liquidity ratios? ›

Liquidity ratios are important financial metrics used to assess a company's ability to pay current debt obligations. The two most common liquidity ratios are the current ratio and the quick ratio.

How do you know if liquidity is good? ›

A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts. A current ratio below 1 means that the company doesn't have enough liquid assets to cover its short-term liabilities.

How do liquidity providers make money? ›

Whenever a crypto liquidity provider trades within a liquidity pool, they receive a fee on their contribution. By swapping or selling crypto in an incentivized pool, they can make back extra crypto. Yield farming is another popular method of turning a profit.

Why is it called liquidity? ›

Liquidity describes your ability to exchange an asset for cash. The easier it is to convert an asset into cash, the more liquid it is. And cash is generally considered the most liquid asset. Cash in a bank account or credit union account can be accessed quickly and easily, via a bank transfer or an ATM withdrawal.

What are the three main components of the demand for liquidity? ›

According to Keynes, the demand for liquidity is determined by three motives which are, transactional motives, precautionary motives and speculative motives.

What is liquidity in a country? ›

Liquidity is a key measure of how well financial markets are working. It refers to how easily assets can be bought or sold—and when it dries up, it can be disruptive.

What is liquidity and why does it matter? ›

When investing in the financial markets, liquidity is an important factor to take into account. Simply put, liquidity is how easily an asset can be converted into cash without having a negative impact on its price.

What is liquidity risk in business? ›

Liquidity risk is defined as the risk of incurring losses resulting from the inability to meet payment obligations in a timely manner when they become due or from being unable to do so at a sustainable cost.

What is liquidity in Robinhood? ›

Our writers' work has appeared in The Wall Street Journal, Forbes, the Chicago Tribune, Quartz, the San Francisco Chronicle, and more. Definition: Liquidity ratios are financial metrics that provide insight into a company's ability to repay debt obligations without raising additional capital.

What is Microsoft liquidity ratio? ›

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Microsoft's current ratio for the quarter that ended in Dec. 2022 was 1.93. Microsoft has a current ratio of 1.93.

What is the formula of liquidity index? ›

The liquidity index (LI) is used for scaling the natural water content of a soil sample to the limits. It can be calculated as a ratio of difference between natural water content, plastic limit, and liquid limit: LI=(W-PL)/(LL-PL) where W is the natural water content.

How it will calculated liquidity ratio? ›

Current Ratio = Current Assets / Current Liabilities

The current ratio is the simplest liquidity ratio to calculate and interpret. Anyone can easily find the current assets and current liabilities line items on a company's balance sheet.

How do you calculate cash liquidity? ›

The cash ratio is a liquidity measure that shows a company's ability to cover its short-term obligations using only cash and cash equivalents. The cash ratio is derived by adding a company's total reserves of cash and near-cash securities and dividing that sum by its total current liabilities.

What is the liquidity rule? ›

The Liquidity Rule requires (i) assessment, management, and periodic review of a fund's liquidity risk, (ii) classification of the liquidity of a fund's portfolio investments into one of four prescribed buckets – highly liquid, moderately liquid, less liquid and illiquid – including at-least-monthly reviews of these ...

How can I improve the liquidity of my estate? ›

Life cover and your estate

“The easiest way to make enough cash available to wind up your estate is to take out a life policy and make the beneficiary the estate,” says Blignaut. This can give you peace of mind that all your estate expenses are covered upon your passing, and that your dependants are well taken care of.

What is the best tool to provide estate liquidity? ›

Insurance is an effective strategy to ensure that your heirs do not have to sell some or all of your estate's assets in order to cover the income or estate tax liability. It is an effective way to create estate liquidity.

What are the 3 liquidity ratios? ›

The three main liquidity ratios are the current, quick, and cash ratios. The current ratio is current assets divided by current liabilities. The quick ratio is current assets minus inventory divided by current liabilities. The cash ratio is cash plus marketable securities divided by current liabilities.

What are the four liquidity ratios? ›

There are following types of liquidity ratios:
  • Current Ratio or Working Capital Ratio.
  • Quick Ratio also known as Acid Test Ratio.
  • Cash Ratio also known Cash Asset Ratio or Absolute Liquidity Ratio.
  • Net Working Capital Ratio.

What are examples of liquidity ratios? ›

Common liquidity ratios include the quick ratio, current ratio, and days sales outstanding. Liquidity ratios determine a company's ability to cover short-term obligations and cash flows, while solvency ratios are concerned with a longer-term ability to pay ongoing debts.

What is the best measure of liquidity? ›

Cash ratio: The cash ratio is the strictest means of measuring a company's liquidity because it only accounts for the highest liquidity assets, which are cash and liquid stocks. Use this formula to calculate cash ratio: Cash Ratio = (Cash and Cash Equivalents) / Current Liabilities.

How much money should you have in liquidity? ›

Most financial experts end up suggesting you need a cash stash equal to six months of expenses: If you need $5,000 to survive every month, save $30,000.


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