IMPACT OF LIQUIDITY & PROFITABILITY ANALYSIS OF SELECTED IT COMPANIES

Abstract

Why profits vary throughout companies in the same industry is a key subject in corporate
strategy. The ability of a business to turn a profit determines its success. Therefore, it is critical
to understand the metrics that provide a true picture of a business's profitability. Simply put,
liquidity is a company's capacity to transform its assets into cash in order to pay for short-term
obligations. The company's two most important key performance metrics are profitability and
liquidity. A financial manager must so strike the correct balance between the two. Therefore, the
purpose of this study is to comprehend how liquidity affects the profitability of particular IT
organisations.