A shortfall is the amount by which a company's actual results fall short of its expected or planned results. Shortfalls can occur in various areas of a company's operations, including sales, production, and financing. Shortfalls can be caused by a variety of factors, including economic conditions, competition, and poor planning.
What is liquidity shortfall?
A liquidity shortfall is a situation in which a company does not have enough cash on hand to meet its short-term obligations. This can happen for a variety of reasons, including unexpected expenses, a decrease in revenue, or an increase in payables. A liquidity shortfall can be a serious problem for a company, as it may be unable to meet its financial obligations and may be forced to take out loans or sell assets to raise cash.
How can a business overcome shortfall?
There are a few ways a business can overcome a shortfall. One way is to increase revenue. This can be done by increasing prices, finding new customers, or selling more products or services. Another way to overcome a shortfall is to decrease expenses. This can be done by reducing the cost of goods sold, reducing overhead costs, or eliminating unnecessary expenses. Finally, a business can also borrow money to cover a shortfall. What's another word for shortfall? A shortfall can also be referred to as a deficit.
What is provision shortfall?
A provision shortfall is when a company does not have enough provisions to cover its liabilities. This can happen for a number of reasons, such as an underestimation of the amount of provisions needed, or an unexpected increase in the amount of liabilities. If a company has a provision shortfall, it may need to raise additional funds to cover the shortfall.
What does shortfall risk mean?
Shortfall risk is the risk that a company will not be able to meet its financial obligations. This can happen for a number of reasons, including poor sales, unexpected expenses, or a change in the economic environment. If a company is unable to meet its obligations, it may have to declare bankruptcy. This can have a devastating effect on the company's employees, shareholders, and creditors.