A study on the liquidity, profitability and financial health of Sun Pharmaceutical Industry Ltd.

The company has to keep liquidity to pay the obligations on time but at the same time the liquidity of the company effect its profitability and risk. It is very significant of the company to keep Trade-off between adequate liquidity at minimum risk and maximum profitability. This paper is a meek attempt to focus on company's liquidity, profitability, trade-off between liquidity, profitability and risk and financial health using Altman's Z-Score Test. The indicators used for study are - Current Ratio, Quick Ratio and Absolute Ratio for liquidity, and Return on Assets (ROA), Return on Capital Employed (ROCE) and Return on Net Worth (ROE) for profitability and Risk Factor to study the correlation between Liquidity, Profitability and risk. Results of the study showed that there is moderate correlation between liquidity and risk and profitability & risk. The calculated Z-score during the period of study is more than 3 indicating that the company is in a healthy zone.