The purpose of the paper is to point out the accounting-based variables and relationships between them which enable us to measure financial liquidity in a way appropriate for assessing the financial distress risk of companies operating under conditions of a negative Cash Conversion Cycle (CCC)....

This paper discusses the DCF method for valuation of companies: (i) having enormous investments in OWC resulting from e.g. the length of the operating cycle, the size of operations, high variability of operating cash flows, (ii) being young thus having minor profits and keeping investments in...