A company that shows a loss according to its P&L cannot be liquid?
That's wrong, isn't it?
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A company can own illiquid assets that, after a reassessment, produce an annual loss in the income statement. However, sufficiently high liquid resources may be available…
In the profit and loss account, all revenue and expenditure shall be compared within a given period. It does not consider the assets of the company – and thus neither the cash balance nor the balance (or liabilities) on the bank accounts. This is precisely the "liquid means" which are considered when it comes to whether or not a company can fulfill its payment obligations.
Right, the statement is wrong!
A company can make big losses, but by means of previously located funds or, in my opinion, the sale of the company building can be very liquid.
Conversely, profits can also go past the company's wallet if they are based only on book wins (reevaluation of objects etc.).
For me, it is not a contradiction to produce losses and yet to have liquid resources.
The company may be liquid 🙂