Liquidity, profitability and WCM

The purpose of this study was to establish a conceptual framework to measure liquidity, profitability and working capital management of the Cagayan de Oro restaurant for 5 years. The following research and opinion contribute to this research. In this chapter we will discuss discussion of several variables related to profitability, liquidity and working capital management. Liquidity "When a company estimates and measures liquidity, the focus is the level of banks and the funds currently held" (Lamberg & Välming, 2009, p. 61).

This study empirically examines the relationship between profitability and liquidity of Mauritius insurance companies through a regression model and association analysis. What business goal is to make money. If there is no profit, it disappears immediately. Companies need to make sure that they have enough money to pay not only the cost but also the rest. The company's profitability is affected by many factors including liquidity. Each interested party is interested in the liquidity situation of its affiliates. Employees are also interested in the company's liquidity to understand whether the company can meet employee obligations, ie wages, pensions, reserves. Shareholders have a great influence on profitability, so we are interested in understanding liquidity. By analyzing the company's financial statements, you can understand the liquidity situation.

The ultimate measure of liquidity planning and management efficiency is the impact on profitability. These companies prefer high return on assets to increase profitability, which will affect liquidity. Therefore, a survey was conducted to confirm this claim in the Mauritius insurance industry. The purpose of this paper is to investigate the context of Mauritius, especially the relationship between profitability and liquidity in the insurance industry. We use a econometric model in this study.

It is very important and the first step to study the role of liquidity management policy in the company's profitability. In many cases, companies decide whether to face higher risk by achieving higher profits. If an enterprise wants to absorb the risk of greater profit and loss, it can reduce the working capital size related to turnover. If the company's main concern is to improve liquidity, working capital will increase. Therefore, companies need to balance liquidity and profitability (Vishnani &. Shah, 2007).