Question

give your own views in respect the role of liquidity on profitability​

Answer 1

Answer:

liquidity is concerned with liquid assets ( cash and cash equivalents).

liquidity is important for business because it helps a business to its day to day expenses.

you see if a business is in profitable position but not able to meet its daily expenses. mean it has not much liquid assets in hand, then not good for its working and performance.

on the other hand if a business has liquid assets more than it's requirements,it mean business is not managing liquid assets properly.

so in both the position it effect its working.