Measuring liquidity and efficiency of selected large cap Indian cement companies with the help of TOPSIS technique – an Empirical Study

India has registered 8% share of the global installed capacity in respect of cement production and emerged as the second largest cement producing country in the world. Abundances of limestone and coal, eco-friend technology and growing demand, Indian cement industry is the major place of attraction of investors in the world. In this paper it has attempted to analyse the financial performance of 12 selected large cement companies in India. All of these companies have been selected by convenient sample method from the list of large cement companies given by Cement Information System (CIS), Department for Promotion of Industry and Internal Trade, Government of India. All data are secondary and collected form Capital Line Corporate Database for the period of 2014 to 2023. 5 ratios in each category of liquidity and efficiency i.e. total in 10 ratios have been used as criterion to form a matrix for analytical purpose. TOPSIS (Technique for order preference by similarity to ideal solution) with entropy weighted method have used to determine the rank of the companies in respect of liquidity, efficiency and ranked the overall performance. Spearman’s rank correlation coefficient indicates that there is significant correlation between the liquidity, efficiency and overall performance.