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I'm reading WHAT HAS WORKED IN INVESTING, and quote
When liquidation value appraisals are made, the estimated "haircut" on accounts receivable and inventory is often recouped or exceeded by the estimated value of a company's real estate and equipment
What does haircut mean here?
In investing and other financial contexts, a haircut means a reduction applied to the value of an asset. This means, in this case, that they reduce the value of accounts receivable and inventory (as the liquidation procedure will aim to settle/sell things quickly, and so at less of a value than they might otherwise get).
