Liquidity Analysis through Ratios and Cash Flow with reference to Limited Company
Jagtap Manisha ()
Additional contact information Jagtap Manisha: School of Management, New York Institute of Technology, Northern Boulevard, Old Westbury, NY 11568-8000, USA Author-Name : Natarajan P.
Abstract:
Finance is lifeblood of any business, the overall success of any business depends to a major extent on efficient and effective management of funds. Although there are other managerial problems, the problem of financial management occupies a central place in the overall management of any organization, even the problems in other areas in Production, Human Resource or Marketing are linked up with Finance. A firm’s ability to pay for its current obligations in a timely fashion with minimal cost is termed as Liquidity. The bankers, suppliers of goods and other short-term creditors are interested in the liquidity of the concern. If current liabilities may not be easily met out of current assets, then liquidity position will be bad.