Liquidity and Profitability Analysis of Housing Financial Companies (HFCS) in India: A Comparative Study between GICHFL and DHFL

Liquidity is an ability of a firm to meet its short-term obligations. Profitability is a measure of the amount by which a company's revenues exceed its relevant expenses. The importance of liquidity to the company performance may lead to the conclusion that it determines the profitability level of company. Ample Liquidity and good profitability are the pre-requisites for the survival of every firm. Hence this study an attempt has been made to study the relationship between liquidity and profitability of selected HFIs in India. In this article the researcher has selected GIC Housing finance limited and Dewan Housing finance limited as a sample on the basis of availability of data. The study has been carried out for ten years period from 2003–04 to 2012–13. The study highlights that liquidity position of DHFL is the better than GICHFL under consideration.