Abstract:
Purpose:
The main objective for this research is the find the impact of free cash flow and liquidity ratio on
profitability of the power generation firms in Karachi. This purpose is to measure either the
impact is positive or negative
Research Methodology
The nature of this research is secondary and based on audited annual reports. To evaluate the
result, Panel least square model is use. It contain panel data therefore it is evaluated by Eviews
software.
Finding:
In this research, Panel least square method is applied to analyze the impact of Free Cash flow
and liquidity ratio on profitability of power generation firms in Karachi. Different hypothesis are
created according to each variable of independent and dependent. The result have been discussed
according to 5 % significance level.
Practical Implimentation:
This study reveals that Quick ratio have a positive impact on ROA while Free cash flow and
current ratio does not have any impact on dependent variable use in this study and quick ratio
does not have impact on ROE and NIM.
