Liquidity and Profitability Management of Ashok Leyland Ltd. during the corona virus disease period

Liquidity and Profitability Management of Ashok Leyland Ltd. during the corona virus disease period
Author(s):
Dr. N. VELMATHI
Keywords:
Business, Finance, Liquidity, Performance and Profitability
Abstract
Liquidity and profitability are the two most significant key performance indicators of business. Liquidity measures the time and ability it takes to transform our assets, such as accounts receivables, into cash to deal with immediate and short-term financial obligations and/or emergencies. Having adequate or high liquidity does not mean a business is profitable – it simply means there are assets to sufficiently cover immediate and short-term expenses. And even if business is profitable, that does not necessarily mean that adequately dealing with current financial obligations. It can come as a complete shock to some business owners to realize that a company that is profitable can experience a financial crisis and may not be positioned for long-term growth, or even have enough liquidity to cover short-term financial obligations. Understanding how to leverage liquidity and profitability to evaluate and improve business is a significant piece of effective financial analysis is enviable in the corona virus disease period
Article Details
Unique Paper ID: 158491 Publication Volume & Issue: Volume 9, Issue 9 Page(s): 672 - 676
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