Open AccessAn In-depth Analysis of the Relationship between Liquidity and Profitability, Vis-à-vis, Tata Pigment Limited
Author(s) -
Amar Kumar Chaudhary,
S Dilip Chand Raja
Publication year - 2021
Publication title -
european journal of business and management research
Language(s) - English
Resource type - Journals
ISSN - 2507-1076
DOI - 10.24018/ejbmr.2021.6.3.881
Subject(s) - profitability index , market liquidity , accounting liquidity , descriptive statistics , liquidity risk , economics , business , econometrics , monetary economics , statistics , mathematics , finance
The present study aims to acknowledge the pre-eminent relationship between the liquidity and profitability which performs a key role in corporate finance. The liquidity management performs an indispensable role as deficient liquidity and surplus liquidity both affects the functioning, profitability, and growth of any organization. The present study analysis is on Tata Pigments Ltd for a period from 2013-14 to 2018-19. The empirical and analytical study applies descriptive statistics, correlation, and regression to test the hypothesis of the study. The findings suggest that there is no significant relationship between the liquidity and profitability. The liquidity indicators do not affect the profitability ratios.