Abstract

Liquidity and profitability ratios are very vital indicators of the company’s performance for the short- and long-term view. Continuing profit help for the future growth of the company and liquidity proves the smooth running of the business on a short-term basis. In this study selected Automobile companies of India are used for the analysis. The purpose of the study is to find out the liquidity and profitability performance of companies. And to check relationship between liquidity and profitability of selected companies. For the purpose of the study three companies are selected from the Automobile sector which are Maruti Suzuki India Ltd., Tata Motors and Mahindra and Mahindra Ltd. The data is collected from annual report of selected companies. The study period is for 10 years. From 2013-14 to 2022-23. For the analysis two statistical techniques arithmetic mean and regression analysis are used. From the analysis it has been observed that in liquidity ratio, Mahindra and Mahindra Ltd. Performed better than Maruti Suzuki India Ltd and Tata Motors Ltd. while in profitability ratio Maruti Suzuki India Ltd. Performed better than Mahindra and Mahindra Ltd and Tata Motors Ltd. The study concludes that there is no statistically significant relationship between the liquidity ratio and profitability ratio.

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