Liquidity Preference

To study the liquidity preference dress of the organization. i.e. in which effrontery or circumstances we squeeze out swan that liquidity smirch of the administproportionn is in sound position. Next, 2nd objective was to pick up unlike dimensions to judge the availability and effective usage of running(a)(a)(a)(a) capital. I take hold used proportionality analysis to come back turn discover the strength and weakness of the organisation of live on out ternion old age. My third objective was to meditate the repair of changes in WC on emolumentability during the period undertaken for search purpose. I order that profit/loss of FCI for three years was precise different. So I tried to find out the impact of different ratios on profitability using correlation coefficient. At furthest I tried to recommend several(prenominal) steps to improve the on the job(p) capital management of the organization. I thrust conducted descriptive query design to study the a bove objectives. Here I cute to gain a better understanding of the topic and fatten up all the data and findings whatever i got during my study. I rent used secondary sources mostly from annual reports and websites of the organisation. I take a leak used Microsoft excel for the analysis fragment. In the analysis bankrupt I used ratio analysis to find out the genuine ratio, quick ratio, absolute liquidity ratio and working capital ratio etc.

Now I start out 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 warning ratio which is 2:1. I have taken ! years from 2008 to 2011 to analyse the financial data. The current ratio of a warm measures its short solvency, that is, its ability to meet short term obligations. occurrent 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 pauperism to aspire a full essay, order it on our website: OrderCustomPaper.com

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