LIQUIDITY PRESSURES AND PROFITABILITY OUTCOMES: A FRAMEWORK FOR THE AUTOMOTIVE INDUSTRY

Povzetek

 The research article seeks to study the affinity between profitability and liquidity. The prior and utmost important objective of this study is to specify how liquidity influences the profitability of the Automobile Sector in India. The sample consists of 30 automobile Industries operating and manufacturing in India and the duration opted is of ten years which is from 2013 to 2022. The data utilised for the analysis was secondary data accumulated from Prowess IQ database and Tableau has been applied for analytical purposes. The statistical tests  adopted in the study are descriptive statistics, correlation, coefficient and regression analysis. For interpreting the result a variable of profitability which is ROCE is utilized as a dependent variable whereas all additional variables of liquidity i.e. CR, QR, DTR and ITR are taken up as independent variables. The conclusions and findings of the study states that liquidity affects the profitability of India's automobile industries, and each of the independent factors individually is correlated with the dependent variable. Thus some of them have positive correlations, while others have negative correlations, but as per the study it can be stated that, only one of these independent variables i.e. ITR has a significant influence on ROCE, which is our dependent variable. Thus, this can be concluded because as per all the tests that were done, only ITR has produced the most favourable results.