Impact of Liquidity, Solvency, Efficiency, Capital structure and Cash Flow on Profitability: A Case Study of Reliance Industries Ltd

Autor: Nelson K Macwan, Kiran J Patel
Rok vydání: 2023
DOI: 10.5281/zenodo.8169276
Popis: Profit and wealth creation are the primary goals of any organization, as the performance of a company is dependent on many factors, such as liquidity, efficiency of asset utilization, solvency, and cash flow generating capacity. The study has been initiated to analyse the effects of liquidity, efficiency, solvency, and cash flow on the profitability of the Reliance Co. Ltd., which is the country's largest company with diverse businesses such as textiles, chemicals, petroleum, energy, natural gas, retail, and telecommunication. Reliance LTD is a Fortune 500 company that is headquartered in India. The investigation was carried out from 2009 to 2022. Least square regression is applied where the dependent variable is profitability, which is measured by return on assets, where liquidity is measured by quick ratio, efficiency is measured by asset turnover ratio and inventory turnover ratio, capital structure is measured by debt-equity ratio, solvency is measured by interest coverage ratio, and cash flow is considered from operating, investing, and financing activities, which are independent variables. Keywords: Profitability, Liquidity, Solvency, Capital Structure, Cash Flow
Databáze: OpenAIRE