Liquidation

Liquid Liquidation Value

Cash + Accounts Receivable − Total Obligations

Liquid Liquidation Value (LLV) adds accounts receivable to cash before subtracting Total Obligations. Receivables are amounts owed to the company by customers, generally collectible within 30–90 days, making them the most liquid asset after cash itself. In a liquidation, receivables can typically be collected at close to face value (or factored at a discount). LLV represents a moderate liquidation scenario where the company collects outstanding invoices before settling all debts. The difference between CLV and LLV reveals how much of a company’s liquidity cushion comes from receivables rather than cash on hand.

Total Obligations

Total Obligations = Current Liabilities + Long-term Debt + Operating Lease Liability + Finance Lease Liability. This captures all balance sheet obligations, including lease commitments recognized under ASC 842.

XBRL Fields Used

Cash: CashAndCashEquivalentsAtCarryingValue
Accounts Receivable: AccountsReceivableNetCurrent / ReceivablesNetCurrent
Current Liabilities: LiabilitiesCurrent
Long-term Debt: LongTermDebt / LongTermDebtNoncurrent
Operating Lease Liability: OperatingLeaseLiability
Finance Lease Liability: FinanceLeaseLiability

Banks and REITs: Financial institutions (banks, insurance companies) and REITs have fundamentally different balance sheet structures. Their current liabilities include customer deposits and policy reserves that are not comparable to operating company obligations. These companies are flagged in the data but not excluded — interpret their liquidation metrics with caution.

ASC 842 Lease Treatment: Total Obligations includes operating and finance lease liabilities recognized under ASC 842 (effective 2019). For companies that adopted ASC 842, these lease obligations appear on the balance sheet. For pre-adoption periods, the fallback tags OperatingLeasesFutureMinimumPaymentsDueTotal and CapitalLeaseObligations are used where available.

These metrics are derived from publicly available financial statements filed with the SEC and involve simplifying assumptions about asset realization and liability settlement. Actual outcomes in a liquidation scenario may differ significantly due to market conditions, legal priorities, asset impairments, and other factors not fully captured in reported data.