Liquidity Management and Profitability: A Case Study of Listed Manufacturing Companies in Sri Lanka
Journal Title: The International Journal of Technological Exploration and Learning - Year 2013, Vol 2, Issue 4
Abstract
Liquidity management and profitability are very important issues in the growth and survival of business and the ability to handle the trade-off between the two a source of concern for financial managers.The study is also aimed at finding the effect of changes in liquidity levels on profitability of manufacturing companies in Sri Lanka. The study covered listed manufacturing companies in Sri Lanka over a period of past 5 years from 2008 to 2012. Correlation and regression analysis were used in the analysis and findings suggest that there is a significant relationship exists between liquidity and profitability among the listed manufacturing companies in Sri Lanka. Suggested that Inventory Sales Period (ISP), Current Ratio (CR)and are significantly correlated with Return on Asset (ROA), Operating Cash Flow Ratio (OCFR)are significantly correlated with Return on Equity (ROE) 5 percent level of significance. At the same time ISP and OCFR also are significantly correlated with ROA, Creditors Payment Period (CPP) also is significantly correlated with ROE at 1 percent level of significance.
Authors and Affiliations
Priya,K| Demonstrator, Department of Commerce, University of Jaffna, Dr.Nimalathasan,B| Senior Lecturer, Department of Accounting, University of Jaffna
Keywords
Related Articles
- EP ID EP8484
- DOI -
- Views 383
- Downloads 27
An Empirical Study on Rewarding Performance to Improve the Quality of Faculty in Private Management Institution in Area of Greater Noida Region
Greater Noida had emerged as one of the leading education hubs in India. Management Education Institute has gained a tremendous popularity as it helps them in getting richly paying jobs, however lack in required perfo...
Applications of Artificial Neural Networks in Friction Stir Welding: A Review
This paper gives a review on the applications of artificial neural network in friction stir welding. Friction stir welding is a fairly new solid state joining process and has found numerous applications including in a...
Design of a New Porous Medium Heat Exchanger for an Aircraft Refrigeration System
The design of a porous medium heat exchanger is done. The conventional heat exchanger used in the bootstrap air refrigeration system of a Boeing aircraft is redesigned using CFD analysis. A porous tube of 72.8mm diam...
Advanced File Sharing in Peer to Peer Systems
File Sharing in Peer-to-Peer Networks are a tedious process. For a particular peer to access the files owned by other peer it has to recognize the details of the desired file. Whenever a peer requires a file, it trans...
Implementation of a Capacitor Less Low Dropout Voltage Regulator on Chip (SOC)
In this paper we have implemented a linear voltage low drop out regulator for efficient power management considering the fact in mind that voltage regulators provide a constant voltage supply to the circuits. We repla...