LIQUIDITY RATIOS AND CORPORATE PERFORMANCE PREDICTION AT RELIANCE INDUSTRIES

Abstract

This research explores how liquidity ratios indicate corporate success for Reliance Industries Limited. The current ratio, quick ratio, and cash ratio reflect a company's short-term liquidity and capacity to satisfy financial obligations. This study compares these indicators to prior financial times to determine their prediction value. These variables indicate financial stability, operational efficiency, and profitability, which are crucial to organizational effectiveness. By evaluating historical financial data, we can see how liquidity affects return on equity, net profit margin, and return on assets. Thus, we can assess liquidity management's impact on corporate performance. Findings emphasize the importance of adequate liquidity levels to increase performance, assure long-term growth, and reduce financial risks in an ever-changing company climate, aiding strategic financial planning.