The Impact of Liquidity Ratios on Profitability

The ultimate goal of the companies is to enhance the wealth of the shareholders. For that purpose the liquidity and profitability plays the vital and crucial role. Especially the liquidity and its management are caused to great extent of the growth and profitability of a firm. The liquidity management becomes the most important one as the inadequate liquidity may injurious to the smooth operations of the firm as well as the excess liquidity can be disturbed to achieve the greater profits. In this way, this book provides a brief understanding about the relationship between liquidity and profitability with past literature support based on a conducted research.