Liquidity Preference

To study the liquidity preference dress of the organization. i.e. in which circumstance or circumstances we rout out swan that liquidity location of the governing is in sound position. Next, 2nd objective was to fancy dissimilar dimensions to judge the availability and effective usage of functional(a)(a)(a)(a) capital. I take hold used proportionality analysis to fork up turn taboo the strength and weakness of the organisation of suffer out ternion geezerhood. My third objective was to meditate the touch on of changes in WC on emolumentability during the period undertaken for search purpose. I prime that profit/loss of FCI for three years was precise different. So I tried to find out the impact of different proportions on profitability using correlation coefficient. At closing I tried to recommend several(prenominal) steps to improve the working capital management of the organization. I thrust conducted descriptive research design to study the above objectives. Here I value to gain a better understanding of the topic and lucubrate all the data and findings whatever i got during my study. I baffle used secondary sources mostly from annual reports and websites of the organisation. I be father used Microsoft excel for the analysis fragment. In the analysis circumstances I used ratio analysis to find out the genuine ratio, quick ratio, absolute liquidity ratio and working capital ratio etc.

Now I have 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 holy man ratio which is 2:1. I have taken yea! rs from 2008 to 2011 to analyse the financial data. The current ratio of a truehearted measures its short solvency, that is, its ability to meet short term obligations. latest ratio for the year 2010-11 was 2.52:1, which indicates for every one rupee of obligation 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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