Volume : 4, Issue : 4, April - 2015

DETERMINANTS OF LIQUIDITY OF THE SELECT INDIAN TRACTOR COMPANIES

Dr. R. Velmurugan, S. Annalakshmi

Abstract :

<p>&nbsp;India is mainly an agricultural country. Agriculture accounts for approximately 25 percent of India&rsquo;s GDP. The auto&nbsp;</p> <div>industry plays a significant role in shaping a country&rsquo;s economy development.The reputation of any industry depends&nbsp;</div> <div>on its liquid position, which assists a company in settling their dues in time. Liquidity refers to the firm&rsquo;s ability to meet&nbsp;</div> <div>the claims of suppliers of goods, services and capital. The article considers liquidity position of tractor industry by employing Correlation and&nbsp;</div> <div>Multiple Regression test. The data required for the study is secondary in nature. The required data are collected from Capital Line databaseforthe&nbsp;</div> <div>period ranging between 2002 and 2012.The collected data is analyzed by making use of correlation and Multiple Regression. The results reveals&nbsp;</div> <div>that liquidity position of a company depends on Size, Return on Investment, Inventory Turnover Ratio, Growth in Sales, Leverage and Assets&nbsp;</div> <div>Turnover Ratio.</div>