ANALYSING SELECTED CEMENT COMPANIES OF INDIA: A LIQUIDITY SCENARIO PERSPECTIVE

Abstract

Liquidity analysis is an important measure of a company's financial health, as it indicates the ability of the company to meet its short-term obligations. The main objective of these study to analysing selected cement companies of India: a liquidity scenario perspective. For the period 2012-2013 to 2021-2022. The secondary data is used for the research.  It has been collected from selected ten cement companies’ annual reports. The used tools & techniques: liquidity ratios analysis (current ratio, quick ratio and cash ratio), descriptive statistics analysis, analysis of variance (ANOVA) and Post-hoc Tukey test. It is concluded that there is a considerable variation in the liquidity ratios of the companies in the cement industry. While some companies have a strong liquidity position (e.g., Ambuja Cements Ltd. Shree Cements Ltd. ACC Ltd.), others have a weaker liquidity position (e.g., The India Cements Ltd., The Ramco Cements Ltd. and Prism Johnson Ltd.). Therefore, it is important to evaluate each company's liquidity position based on its specific circumstances and needs. Overall, the 95% confidence interval for the mean values for all three liquidities ratios. which suggests that the true mean values for all three liquidities ratios for all cement companies in the industry is likely to fall within this range. It is also concluded that all the null hypotheses have not been accepted meaning thereby all alternative hypotheses are accepted. There are significant differences between the current ratio, quick ratio and cash ratio of selected cement companies of India.