Abstract:
PURPOSE;
The purpose of this research study is to investigating the impact of liquidityratios on profitability of the selected automobile companies of Pakistan located at Karachi for the time period (2005-2014).The important financial indicators of corporate entities are liquidity and profitability. Liquidity ratios are used to evaluate the performance of a firm to overcome its short term obligations in a specific time period. The higher the current ratio the greater the margin of safety for short term maturing obligations. While profitabilityratio
is used to judge the performance of the organization that its efficiently utilized resources of a business.