Relationship between profitability and liquidity of standard chartered bank Pakistan.

   Rafiq Ahmad shamoon. Quaid.i.Azam school of management sciences Quaid.i.Azam University Islamabad. The purpose of this research ...

 

 Rafiq Ahmad shamoon.

Quaid.i.Azam school of management sciences Quaid.i.Azam University Islamabad. The purpose of this research paper is to know the relationship between two ratios of the financial statements i.e. profitability and liquidity. The study is focused on the banking sector. The relation is measured by current ratio, quick ratio, and net-working capital. The bank under study is standard chartered bank Pakistan. For analysis historical data of 10 years is taken under consideration.

 GJMBR: Global Journals Blog

Profitability and liquidity are two important variables which give information about the performance of any business entity. For long-term survival and healthy growth both profitability and liquidity should go parallel to each other .Profitability is one of the major goals of any business. Without being profitable it is not possible for a business to survive and the business growth is difficult. To generate profit a business need short-term funds to fulfill its day to day needs in operations and other requirements. Business will be more profitable when this short- term need of funds is generated by business operation not through external debts. So the liquidity tells about the business capability to meet short-terms need of funds by the business and profitability tells about the profit generated from the operations of business.

From the findings of this study we came to conclusion that there is weak positive relation between liquidity and profitability of standard chartered bank Pakistan. Quantitative research design is used as tool for the study. To find the relation and strength of the relation correlation and regression are used. So companies need to focus on liquidity management which has a positive relation with the company’s profitability.From the findings of this study we came to conclusion that there is weak positive relation between liquidity and profitability of standard chartered bank Pakistan. Quantitative research design is used as tool for the study. To find the relation and strength of the relation correlation and regression are used. So companies need to focus on liquidity management which has a positive relation with the company’s profitability.

Published by Global Journals

Research article:
https://globaljournals.org/GJMBR_Volume16/7-A-Study-of-Relationship.pdf


Summary Research paper
https://docs.google.com/document/d/1XiCeOji2klIQT8GjdOkgU0akHTk_0o-HdDyFgsUmD1Y/edit?usp=sharing

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