International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Open Access | Fully Refereed | Peer Reviewed

ISSN: 2319-7064


Downloads: 148 | Monthly Hits: ⮙1

Research Paper | Economics | Bangladesh | Volume 5 Issue 9, September 2016


Liquidity and Profitability Trade-off in Pharmaceuticals and Chemicals Sector of Bangladesh

Md. Kaysher Hamid, Rowshonara Akter Akhi


Abstract: This study aimed to identify the relationship between liquidity and profitability in pharmaceuticals and chemicals sector of Bangladesh. To fulfill the objectives, 10 companies were selected from the concerned sector and annual reports of these companies were collected for the accounting period of 2005 to 2014. Current Ratio (CR), Quick Ratio (QR), and Working Capital Ratio (WCR) were used as the indicators of liquidity and Return on Assets (ROA), Return on Equity (ROE), and Return on Capital Employed (ROCE) were considered as the indicators of profitability. For analyzing the data, widely used statistical measurements i. e. correlation, regression and Spearsman`s rank correlation coefficient method were used. From correlation analysis, this study found positive relation of QR and WCR with ROA, ROE, and ROCE. But, from regression analysis, it was found that there was no significant association between liquidity and profitability in pharmaceuticals and chemicals sector of Bangladesh. Spearsman`s rank correlation coefficient method also made the same conclusion regarding this relationship.


Keywords: Liquidity, Profitability, Relationship, Pharmaceuticals, Bangladesh


Edition: Volume 5 Issue 9, September 2016,


Pages: 420 - 423


How to Cite this Article?

Md. Kaysher Hamid, Rowshonara Akter Akhi, "Liquidity and Profitability Trade-off in Pharmaceuticals and Chemicals Sector of Bangladesh", International Journal of Science and Research (IJSR), https://www.ijsr.net/get_abstract.php?paper_id=ART20161385, Volume 5 Issue 9, September 2016, 420 - 423

How to Share this Article?

Enter Your Email Address


Similar Articles with Keyword 'Liquidity'

Downloads: 3

Research Paper, Economics, India, Volume 10 Issue 8, August 2021

Pages: 14 - 19

Indian Banking - A Long Journey of Incredible Transformation from Traditional Branch Banking to Digital Banking

Dr. S. Upendra Sastry

Share this Article

Downloads: 126 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1

Research Paper, Economics, Kenya, Volume 3 Issue 11, November 2014

Pages: 56 - 63

Effect of Islamic Banking Financing Strategies on Customer Satisfaction in Kenya

Ali Yarrow Ismael

Share this Article

Similar Articles with Keyword 'Profitability'

Downloads: 115

Research Paper, Economics, China, Volume 6 Issue 8, August 2017

Pages: 1774 - 1782

Research of Financial Early Warning on Enterprises Listed on the New Third Board Based on KLR Model

Jianze Zhou

Share this Article

Downloads: 117

Research Paper, Economics, Zimbabwe, Volume 5 Issue 1, January 2016

Pages: 1798 - 1805

Positive Aspects of Conservation Agriculture

Washington Muzari

Share this Article

Similar Articles with Keyword 'Relationship'

Downloads: 0

Masters Thesis, Economics, Kenya, Volume 10 Issue 5, May 2021

Pages: 1211 - 1215

The Effects of Ageing Population Growth Rate on GDP in Kenya

Tanui Kiprotich Leonard

Share this Article

Downloads: 1 | Monthly Hits: ⮙1

Research Paper, Economics, Kenya, Volume 10 Issue 11, November 2021

Pages: 390 - 396

Financial Development and Economic Growth in Kenya: Granger Causality Approach

Kiprop J. Mercy

Share this Article

Similar Articles with Keyword 'Bangladesh'

Downloads: 110

Research Paper, Economics, India, Volume 8 Issue 12, December 2019

Pages: 666 - 670

Demographic Transition of Bangladesh

Aditya Gaur

Share this Article

Downloads: 113 | Monthly Hits: ⮙1

Research Paper, Economics, Bangladesh, Volume 4 Issue 11, November 2015

Pages: 1926 - 1931

School Banking: A New Idea of Banking Operation in Bangladesh

Ujjal Mondal, Md. Solaiman Hossain, Md. Abdul Mannan Khan

Share this Article
Top