Liquidity Analysis of selected Indian Electronics Companies

Liquidity is a position of any business to settle down its obligations within a year i.e., short-term dues. When a business has an adequate amount of current assets, it can easily pay-off its obligations without any external borrowings. And so, analysis of liquidity is preferably done by stakeholders. The liquidity of a business can be measured with the help of financial ratios like current ratio, quick ratio, absolute liquid ratio and net working capital ratio. In this research paper, analysis of liquidity of selected Indian electronics companies has been done on the basis of current ratio and quick ratio. It has been found that Bharat Electronics Ltd (BEL) has sound liquidity position as compared to other companies for the period under study.