TO ANALYSE THE IMPACT OF LIQUIDITY AND LEVERAGE ON PROFITABILITY

Authors

  • Dr. Rakesh Kumar Ambalal Prajapati Assistant Professor Uma Arts and Nathiba Commerce Mahila College. Sector 23 Gandhinagar

Keywords:

Liquidity, Leverage, Pharmaceutical, Profitability

Abstract

The combination of liquidity variables and capital structure variables has been always a major concern for the financial managers in different companies. The present study attempts to analyze the relationship between liquidity and profitability and investigate the impact of financial leverage and liquidity on the financial performance of select pharmaceutical companies for the period from 2008-09 to 2017-18. The results of the study show that the liquidity of the companies which is reflected in the ongoing ability to pay financial obligations, affects the firm’s capital structure. The increase in liquidity of the firm leads to decrease in the leverage and vice versa. However, no significant impact of leverage on profitability and capital structure is evidenced in the present study.

Additional Files

Published

07-10-2023

How to Cite

Dr. Rakesh Kumar Ambalal Prajapati. (2023). TO ANALYSE THE IMPACT OF LIQUIDITY AND LEVERAGE ON PROFITABILITY. International Educational Applied Scientific Research Journal, 4(2). Retrieved from https://ieasrj.com/journals/index.php/ieasrj/article/view/123

Issue

Vol. 4 No. 2 (2019): FEBRUARY ISSUE, INTERNATIONAL EDUCATIONAL APPLIED SCIENTIFIC RESEARCH JOURNAL

Section

Articles