Relationship between Liquidity and Profitability: A Study on Beximco Pharmaceuticals Ltd.

This study has examined the relationship between liquidity and profitability of Beximco Pharmaceuticals ltd. in Bangladesh. In a competitive business world, the financial position always is fluctuated due to ability to meet short term along with long term financial obligation and also collect required fund those are more or less depend on earning capacity of the company. So far I know, very few analytical studies regarding this issue still have been conducted on Beximco Pharmaceuticals. So that I’ve desired to study on this topic is to focus on the relationship of liquidity & profitability from accounting point of view. In assessing the impact of liquidity Beximco’s profitability, I have used secondary sources to obtain data from Beximco’s annual report and also through internet. Results are obtained from using required ratios. The study reveals that there are both positive and negative relationship between liquidity and profitability. It is hoped that this study will draw attention for further study to improve the financial condition of Beximco by creating different upgraded opportunities in trading system to have a better & striking economy for our country. This study will be pretty useful to the business organizations i.e. how to maintain balanced liquidity as they are using debt and equity finance.