Impact Of Liquidity On Profitability Of Bharat Heavy Electricals Limited
Keywords:
Liquidity, Profitability, Operating Profit, Current Assets & Net Sales.Abstract
The objective of this paper is to understand the interrelationship between liquidity position and the profitability position of BHEL and to identify the variable that affects profitability & liquidity of this organization. Working capital management is an important issue in financial management decision and it has its effect on liquidity position as well as to profitability position of the BHEL. Liquidity and profitability have a close relationship and they have a direct impact on each other. In this study, we have analyzed the liquidity position and profitability position covering a period of 05 years from 2010-11 TO 2014-15. Profitability has been measured in terms of gross profit ratio, net profit ratio, operating profit ratio, etc. and the liquidity position has been examined on the basis of the liquidity ratio cash ratio etc. Pearson’s correlation and analysis are used in the study. This study helps us in understanding that there is a strong relationship between the variables of the liquidity and profitability of this business organization.
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