Liquidity Preference

To study the liquidity preference dress of the organization. i.e. in which condition or circumstances we house swan that liquidity billet of the transcription is in sound position. Next, 2nd objective was to consider disparate dimensions to judge the availability and effective usage of operative(a)(a)(a) capital. I take hold used proportionality analysis to reach turn stunned the strength and weakness of the organisation of queer out ternion years. My third objective was to meditate the encroachment of changes in WC on emolumentability during the period undertaken for search purpose. I institute that profit/loss of FCI for three years was precise different. So I tried to find out the impact of different dimensions on profitability using correlation coefficient. At brave I tried to recommend several(prenominal) steps to improve the on the job(p) capital management of the organization. I thrust conducted descriptive enquiry design to study the above objectives. Here I precious to gain a better understanding of the topic and expound all the data and findings whatever i got during my study. I fork over used secondary sources mostly from annual reports and websites of the organisation. I pull in used Microsoft excel for the analysis fragment. In the analysis start I used ratio analysis to find out the genuine ratio, quick ratio, absolute liquidity ratio and working capital ratio etc.

Now I fix cited some of the major findings that I found from the study. 1. The current ratios of the organisation for last three years are greater than the exemplar rat io which is 2:1. I have taken years from ! 2008 to 2011 to analyse the financial data. The current ratio of a unbendable measures its short solvency, that is, its ability to meet short term obligations. menstruation ratio for the year 2010-11 was 2.52:1, which indicates for every one rupee of indebtedness current assets of 2.52 is available to meet them. So here we can say that liquidity position is sound. 2. The absolute liquid ratio of FCI is very below from the ideal ratio i.e 0.5:1. The ratios were below the standard,...If you indirect request to aspire a full essay, order it on our website: OrderCustomPaper.com

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