---

Analysis of financial liquidity and predicting the bankruptcy risk of Indian cement companies

---

Review Article

Author Details : Harsheen Gill*

Volume : 9, Issue : 2, Year : 2022

Article Page : 53-60

https://doi.org/10.18231/j.jmra.2022.012

Suggest article by email

Get Permission

---

Abstract

Liquidity is important to the efficient running of any business. Maintaining liquidity on a daily basis is a critical part of managing working capital to guarantee that the company works effectively and achieves its obligations.Efforts to boost profitability, on the other hand, are likely to lower businesses' liquidity, and a focus on liquidity may have an adverse effect on profitability. The study's major goal was to determine if organizations can make a profit while retaining essential liquidity, or whether they are willing to compromise liquidity to make a bigger profit. The data has been analyzed using Motaal's Liquidity Assessment Test and Spearman's Rank Coefficient of Correlation. This study makes an attempt to examine the link between the sample businesses' liquidity and profitability, as well as the possibility of bankruptcy. Among the ten selected cement companies, UltraTech Cement, Shree Cement, Ambuja Cement, ACC, J.K. Cement, Ramco, Birla Corporation, JK Lakshmi, Rain Industries, and India Cement, UltraTech Cement, Shree Cement, Ambuja Cement, ACC, J.K. Cement, Ramco, Birla Corporation, JK Lakshmi, Rain Industries, India Cement and UltraTech.  Shree Cement, according to Motaal's liquidity test, has the best liquidity status.

Keywords: Cement Industry, Motaal’s Rank Test, Liquidity, Profitability, Bankruptcy

How to cite : Gill H, Analysis of financial liquidity and predicting the bankruptcy risk of Indian cement companies. J Manag Res Anal 2022;9(2):53-60

This is an Open Access (OA) journal, and articles are distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 License, which allows others to remix, tweak, and build upon the work non-commercially, as long as appropriate credit is given and the new creations are licensed under the identical terms.