Of water: a substance that, in developed countries, can be drunk for free from a tap without fear of contracting cholera. Sales of water are 100 times higher than in 1980. Last year, in the UK alone, consumption of water drinks grew by 8.2%, equating to a retail value of more than £2.5bn. The global market was valued at $157bn in 2013, and is expected to reach $280bn by 2020. Over the past two decades, bottled water has become the fastest-growing drinks market in the world. ![]() Water is no longer simply water – it has become a commercial blank slate, a word on to which any possible ingredient or fantastical, life-enhancing promise can be attached.Īnd it’s working. It is a case of capitalism at its most hyperactive and brazenly inventive: take a freely available substance, dress it up in countless different costumes and then sell it as something new and capable of transforming body, mind, soul. Not just another bland still or sparkling, but some entirely new definition of the element. Right now, the global bottled water industry is in one of those strange and energetic boom phases where every week, it seems, a new product finds its way on to the shelves. That means you need a solid understanding of assets and liabilities in order to make good decisions and evaluate the health of your business.Planet Organic’s display was impressive, but only hinted at the full range of waters available to the hydration-conscious consumer. For example, if you have a 30-year mortgage on your building, the next year's worth of payments owed will be listed in the current liabilities section while the remaining balance will be shown as a long-term liability.Īs a small business owner, one of your most important goals will be to balance your books. In addition, payments on long-term debt owed in the next year will be listed in current liabilities. Current liabilities are those that are due in the next year, while long-term liabilities will not be due until at least a year later.Ĭurrent liabilities typically represent money owed for operating expenses, such as accounts payable, wages, and taxes. Liabilities are also grouped into two categories: current liabilities and long-term liabilities. Fixed assets are tangible items usually requiring significant cash outlay and lasting for an extended period of time. Fixed assets are owned by your company and contribute to the income but are not consumed in the income generating process and are not held for cash conversion purposes. These include real estate, vehicles, and machinery. Non-liquid assets are grouped together into the category of fixed assets. These assets generate revenue for your company. These assets can be converted to cash in less than a year and include cash, marketable securities, inventory, and accounts receivable. The most liquid assets are called current assets. The opposite is an illiquid asset like a factory, because the selling process (converting the property to cash) will likely be lengthy. The most liquid asset on your balance sheet is cash since it can be used immediately to pay a liability.
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