An Analysis of Profitability and Liquidity Position of SM Marains Advances Gear Boxs India Private Limited, Ozhuginasery, Nagercoil

Abstract

The profitability and liquidity position of SM Marains Advances Gear Boxs India Private Limited has been analysed for five years (2020-2021 to 2024-2025). This study is focused on analysing the liquidity position of the Company with the help of available ratios like current ratio, quick ratio and cash ratio and also to check the relation between profitability and liquidity. The information is secondary data that has been taken from the company’s financial statements, which consist of Profit and Loss accounts and Balance sheet. Analytical tools used are liquidity ratio analysis, profitability ratio analysis (net profit ratio and return on capital employed) and Karl Pearson’s correlation coefficient, which measures the relationship between the variables. The results suggest that the company has a good liquidity position with slight variations and the profitability level has been improving over the years. The study finds it crucial that the company should maintain the balance between liquidity and profitability to increase the financial stability and long-term development of the company.