Liquidity and profitability of telecom sector in India

The main objective of the study was to find whether financial ratios affect the Performance of the companies in the special context of telecom industry in India. This study empirically examines the relationship between liquidity and profitability by using data of two Indian telecom companies. The study is based on secondary data collected from financial reports of the sample companies for a period of five years from 2009–10 to 2013–14. The data was analyzed using the technique ratio analysis and person's correlation coefficient. The management should take measures. Profitability position is better but not up to the satisfactory level. Overall profitability position was good when compared to reliance communications. The correlation analysis is done to analyze the association between the Liquidity and profitability to examine the relationship among these variables pearson correlation is calculated. Especially the inventory if handled proficiently can produce a significant positive impact on profitability of the firm.