Finance is the life blood of business. It also the nerve center of business. It is essential for every business for undertaking all managerial activities connected with. Every business whether it is big, medium, or small needs finance to carry on its operations and to achieve its targets. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. Market liquidity refers to the extent to which a market, such as a country's stock market or a city's real estate market, allows assets to be bought and sold at stable prices. The term profitability refers to the ability to the firm to earn maximum profit from the best utilization of its resources. The profitability of the firm can easily be measured by using profitability ratio’s. The main objectives of this study is to understand the factors affecting liquidity and profitability of the firm and to analyze how liquidity and profitability influence the financial position of the firm. To receiving the proper result I used Ratio Analysis, Correlation, Cash flow Statement, Trend Analysis. The findings also get smooth and showing favorable to the organizations.