Volume-7, Number - 1  
Month: January - June, 2011
L&T's Liquidity Management : An Analytical Study of Trade-off between Liquidity and Profitability
D Maheswara Reddy & K V N Prasad,
IT M Business School,
Warangal, AP

Page No. 92

Purpose/Aim : Infrastructure industry has been playing a major role in providing huge employment opportunities and fueling the growth of the economy as it contributes 10 of India's GDP. It has grown at a CAGR of 14 per cent over the past five years. In the above back drop, here an attempt is made to assess the performance of liquidity management inL&T Ltd as it enlisted in the top ten companies of the industry.

Methodology/Approach : The period of study covers five years and the tools applied to analyze the performance are management accounting ratios and statistical techniques like measures of central tendency and 't' test etc.

Findings/Conclusion : After the data analysis and findings were made, few workable and achievable suggestions are given to improve its liquidity management practices.

Keywords : Current Assets, Current Liabilities, Liquidity, Profitability, Risk