Accountancy, asked by pratimachettri23, 3 months ago

explain the role of liquidity on profitability

Answers

Answered by Anonymous

The liquidity is the ability of a firm to pay its short term obligation for the continuous operation. ... The liquidity of a firm is measured primarily by current ratio and net working capital whereas the profitability is measured by return on assets and return on equity.

Answered by DaraDeekshitha

Answer:

The liquidity is the ability of a firm to pay its short term obligation for the continuous operation. ... The liquidity of a firm is measured primarily by current ratio and net working capital whereas the profitability is measured by return on assets and return on equity

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