A Study on Liquidity Management

Abstract

The study focuses on Liquidity Management. Liquidity management means the amount of capital a business has available to meet the day-to-day cash requirements of its operations. For the success of a business organization, liquidity management is essential as it directly impacts profitability and liquidity. An attempt has been made in this project to study the liquidity position. Ratio analysis, components of gross working capital, and schedule of change in working capital were used to analyze the data. Liquidity management refers to monitoring, controlling, and optimizing a company's or financial institution's liquidity, which is the availability of cash or readily convertible assets to meet short-term financial obligations. Effective liquidity management is crucial for the smooth operation of businesses and financial institutions, as it ensures that they can meet their financial commitments, such as paying bills, repaying loans, and covering operating expenses.