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Liquidity, responsiveness, and external shocks: a firmlevel approach

Abstract:

This document presents an analytical tool that allows monitoring the liquidity conditions of firms in Ecuador. In this way, we analyze the situation of the firms using liquidity ratios and constructing the operating cash flow of the firms. Our results show that at least half of the firms in Ecuador have liquidity problems because of the COVID-19 pandemic and that their working capital has a slow adjustment level when facing adverse situations.