Capital Velocity Adjusted Liquidity Index for Corporate Financial Risk Assessment

DOI

10.2991/978-94-6239-797-2_8How to use a DOI?

Keywords

Working Capital Entropy; Liquidity Measurement; Asset Half-Life; Corporate Solvency; Financial Risk

Abstract

Accounting frameworks operate on the flawed assumption of instantaneous asset conversion. Treating a delayed receivable as equal to on-hand cash violates the time value of liquidity. The methodology establishes a geometric depreciation model called the Capital Velocity Adjusted Liquidity index. The approach applies an exponential half-life decay function to non-cash assets based on operational friction. The evaluation uses 2023 financial data from five major technology companies. It indicates that standard reporting overestimates actual paying capacity. The proposed mathematical formulation offers a structural shift in corporate solvency measurement.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Supansa Chaising
PY  - 2026
DA  - 2026/10/14
TI  - Capital Velocity Adjusted Liquidity Index for Corporate Financial Risk Assessment
BT  - Proceedings of the 2nd International Conference on Lifespan Innovation (ICLI 2026) national Conference on Lifespan Innovation
PB  - Atlantis Press
SP  - 63
EP  - 70
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-94-6239-797-2_8
DO  - 10.2991/978-94-6239-797-2_8
ID  - Chaising2026
ER  -