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provide example of a company with high liquid assets and why?

provide example of a company with high liquid assets and why?
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Answer #1

An example of a company that has high liquid assets is “Cisco Systems”. The company’s liquid assets as a percentage of total assets stand at 49.3%. Also the company’s liquid assets as a percentage of total revenue stand at 103.6%.

The reason why Cisco has such high amount of liquid assets is that the company likes to maintain a safe level of current assets to meet its obligations. Cisco is an IT company and hence, given its unpredictable and volatile business environment, likes to maintain a reasonable level of cash buffer without leaving too much of its capital in a low-return accruing environment.

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