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 351
- Downloads 27
Experimental Investigations of CI Engine by using Different Blends of Neat Karanja Oil and Diesel at Different Injection Pressures
In the present Investigation experimental work has been carried out to analyze the performance characteristics of single cylinder compression ignition direct ignition fuelled with blends of neat Karanja oil and diesel...
Automatic Safety System for Automobiles
In this paper, the need for safety of vehicles by reducing the impact of crash by applying a smooth or partial braking with the help ARM 11 cortex processor is proposed. The driver’s risk of measuring a certain obje...
Design of Low Power 12-bit Magnitude Comparator
The basic function in a microprocessor is magnitude comparison and also it is used in the field of digital signal processing, embedded systems so powerful magnitude comparator is needed. The objective of this paper i...
Estimation of Basic Reproduction Number R0 for SEIR Dengue Fever Model
In this paper, we mainly focus on the transmission of dengue fever with the aim of analyzing and comparing logistic and exponential curve that occurred in Lahore (Pakistan), in the year 2010–-2011. We obtain the fo...
Essential Requirements of PPAP
In today’s competitive environment industries are using various quality standards, such as ISO, TS, APQP etc. While applying these standards in any organizations there are certain procedures. Extensive technical do...