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A low appraisal of sale means low projected revenues , especially in high leveraged operations a small decline in sale can result a big change in bottom line. if the trend goes long term then it will lead to inability to pay their long term obligation ( solvency). a firm may have problem in short term obligation (liquidity) but that may be seasonal or part of plan. simply a failure in long term obligation is bankruptcy (business can not run foreseeable future) and a liquidity problem can proceed to solvency but it's not necessary.
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Low or poor demand will affect total sales and consequently, the organization will not be able settle its short term commitments or part of it on due time, due to the liquidity problem.
Not the company's ability to meet its short-term obligations, or borrowing