The liquidity means the assest which can easily turned in to cash..
where as profitability is money which u have earned from ur business it is also cash...
Profitability
fully discription of ii
1 - Actiivty raios 2 - turnover ratios 3 - Profitability ratios 4 - Liquidity Ratios
Profitability is simply a measure of how successful a company is relative to its inputs. Measures of profitability include gross profit and net profit ratios, return on assets, return on equity, etc. Liquidity is a measure of how likely a company is to meet its short-term obligations (e.g., will it be able to settle its liabilities on time). Standard measures of liquidity include current ratio and quick ratio. Both of these measures are important parts of assessing a company's financial standing. For example, even if a company is profitable, if it is having a hard time meeting it's short-term obligations, then something is wrong with its operations. Likewise, if a company is very liquid because it has large cash reserves lying around, it means that it might not be using its resources efficiently, and should be using some of that cash to invest in company growth.
ORDER OF LIQUIDITY is when items on a balance sheet are listed in order of liquidity. After cash, the other current assets are listed in order of liquidity or nearness to cash (i.e. Accounts Receivable first, then Inventory).
If liquidity inceases profitability decreases so there is inverse relationship
Profitability
Profitability
Liquidity, Profitability,Stability,Growth
liquidity is how quickly an item can be converted to cash, usually to pay short term debts, profitability is how much money an entity has after taking sales revenue - cost of goods sold...so gross margin
If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.
If your company is profitable, you will have the money to be liquid. Only when the money isn't there does liquidity become a factor.
fully discription of ii
Liquidity, Profitability, Leverage, and Activity/Efficiency
profitability
only public sector units
What are the liquidity leverage for mckesson suing 10q?