Assistant Professor, K S School of Business Management, Gujarat University, Ahmedabad-380009, Gujarat, India, Email: parikhiral@gmail.com
Online published on 30 November, 2019.
To measure the profitability of any organisation, the liquidity position should be strong. Life Insurance Corporation of India, being public sector is very rich in its assets and government's holding is huge. Year after year their Income has increased and Life fund has also increased. The liquidity is measure in terms of current assets and their capacity to pay off current liabilities. In LIC of India the current assets consist of cash i.e. premium received and current liability consist of Claims outstanding out of total Claims payable in a year. The profitability ratio taken is Return on Assets; it compares Net Income with Total Assets. The study shows that there is no impact of Liquidity on profitability of LIC of India.
Liquidity, Profitability, current assets, current liability, claims, return on Assets
