Analysis on Liquidity and Profitability Position of Food and Beverage Product Industry

Abstract

In the corporate world, there has been a burning issue in the trade-off between liquidity and profitability position of the organization. In management, there is a need to trade-off between liquidity and profitability as it helps to maximize shareholder’s wealth. In the growth and survival of the business, liquidity and profitability are very important issues. The main aim of the study is to know the relationship between liquidity and profitability of NESTLE India Limited. The study covered a period of five years from 2015-2019. To analyze the relationship between liquidity and profitability, the study has used liquidity and profitability as financial tools and Karl Pearson correlation coefficient as statistical tools. It is found that there is a negative relationship between liquidity and profitability of the firm.