An Empirical Analysis of Impact of Liquidity on Corporate Profitability of Selected Steel Companies of India

Liquidity is the ability of a person, organisation, or bank to quickly turn assets into cash without having a big effect on their market value. It is very important for figuring out how financially healthy and profitable a corporation is, especially in industries that need a lot of capital, like steel. Although prior research has investigated liquidity metrics, such as the working capital turnover ratio (WCTR), across various industries, there is a paucity of studies examining its direct influence on profitability indicators, including the net profit ratio (NPR), operating profit ratio (OPR), and return on capital employed (ROCE), within prominent Indian steel firms like SAIL, Tata Steel, and JSW Steel. By filling this research gap, the current study empirically investigates the effect of liquidity on corporate profitability in specific steel companies in India. The study will assist corporate decision-makers, investors, and politicians in developing efficient financial strategies for the steel industry