IMPACT OF LIQUIDITY RATIOS ON RETURN ON CAPITAL EMPLOYED OF SELECTED STEEL COMPANIES IN INDIA

Abstract The study is focussed on investigating the association and impact assessment between the liquidity position and the company’s profitability, therefore financial ratios commonly used have been considered as the key independent variables and the profitability of the company has been considered as dependent variable interpreted as Return on Capital Employed (ROEC) all cohesively influencing working capital management. To ascertain the inferences regarding degree and direction of the relationship among the variables correlation inferential statistics has been used. Variables having cause and effect relationship possess high degree of correlation in bivariate distribution. The simple regression analysis has also been used for impact assessment of the independent variables over dependent variable. The financial ratios are calculated from the financial data collected from CMIE database, Moneycontrol.com and Annual reports for the period 2013-2022 of the selected steel companies of India