UNVEILING THE FINANCIAL NEXUS: EXPLORING THE RELATIONSHIP BETWEEN LIQUIDITY AND RETURNS IN THE INDIAN SUGAR INDUSTRY

Abstract

The liquidity and profitability trade-off has always been a very crucial aspect not only for the company directors but also for its other stakeholders. Managing current assets and current liabilities is the key to maintaining the highest level of profitability in the profitability and liquidity trade-off. The current study is aimed to measure and analyze the influence of liquidity on returns of the Sugar Companies listed in BSE. In the present study, secondary data from the annual statements of the selected sugar companies for the period 2018-2022 has been taken. The results of analysis showed a significant correlation between the liquidity and profitability.