Impact of Liquidity on Profitability: A Case of Comparison in Textile Sector in Pakistan between 2014 and 2015

Abstract

The impact of liquidity has been studied on profitability in textile sector in Pakistan. The simple regression has been run in Stata 12 and the results show that CR has positive and significant impact on ROCE and ROE in 2014 but in 2015 the results show that CR has positive but insignificant impact on ROCE and ROE. The policy makers must realize the importance of absolute opposite variations in the results.