Abstract:
This research is "The Impact of Liquidity on Firm's Profitability." (with special
reference to the selected Thirty companies listed in the CSE)." Both at the sector level
and the macro level based on the sample of Thirty companies listed in the Colombo
Stock Exchange representing ten sectors.
Data for this study is the Current Ratio and Return On Assets (ROA) Ratio for a period
of five year,2007-2011.
Correlation Analysis and Regression were used to analyze the data to evaluate the
relationship between firm liquidity and its profitability.
The finding of this research is there is no significance impact of firm's liquidity on its
profitability in Sri Lankan listed Companies.
