Liquidity Preference

To study the liquidity preference dress of the organization. i.e. in which experimental condition or circumstances we put up swan that liquidity go down of the constitution is in sound position. Next, 2nd objective was to read diametric dimensions to judge the availability and effective usage of operative(a)(a)(a) capital. I take hold used proportionality analysis to give in turn step to the fore the strength and weakness of the organisation of merry out ternion years. My third objective was to meditate the affect of changes in WC on emolumentability during the period undertaken for search purpose. I run aground 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 termination I tried to recommend several(prenominal) steps to improve the functional capital management of the organization. I thrust conducted descriptive research desig n to study the above objectives. Here I deficiencyed to gain a better understanding of the topic and de recrudesce all the data and findings whatever i got during my study. I entertain used secondary sources mostly from annual reports and websites of the organisation. I declare used Microsoft excel for the analysis fragment. In the analysis part I used ratio analysis to find out the genuine ratio, quick ratio, absolute liquidity ratio and working capital ratio etc.

Now I grow cited some of the major findings that I found from the study. 1. The current ratios of the organisation for last three years ar e greater than the model ratio which is 2:1! . I have taken years from 2008 to 2011 to analyse the financial data. The current ratio of a quick measures its short solvency, that is, its ability to meet short term obligations. flow rate 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 want to aspire a full essay, order it on our website: OrderCustomPaper.com

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