A STUDY ON MEASUREMENT OF RELATIONSHIP BETWEEN THE LIQUIDITY RATIOS AND PROFITABILITY OF THE SELECTED AUTOMOBILE COMPANIES IN INDIA

Liquidity is the prime issue for the any business concern and to manage liquidity is the crucial task for the financial manager. The present paper aims to examine the relationship between the various selected liquidity ratios and profitability of the selected Automobile Companies in India. for this purpose, the researcher has used 5 profitability ratios and 2 liquidity ratios. The result of the study revealed that ROCE, ROTA and CR has insignificant relationship with the profitability while DPR, ROE and QR significantly impact the profitability of the selected automobile companies in India.