Liquidity versus Profitability: A Study on Hindustan Unilever Limited

Abstract

As per the general notion, liquidity should have an opposite relationship with profitability. In case of Hindustan Unilever Limited, it has been observed that with the passage of time, the company was able to improve both its liquidity and profitability. The present paper seeks the reason behind this contradictory result. As per the findings of the paper, intelligent debtors and creditors management helped the company a lot to achieve higher profitability along with higher liquidity.