A Study Of Liquidity Analysis of 2&3 Wheelers Companies Listed On The BSE

Abstract

Liquidity ratios are utilised to assess a company's capacity to meet its immediate financial obligations. Every investor uses the company's liquidity ratios to conduct a fundamental business study. Should the business have any difficulties fulfilling its short-term obligations on time, it would soon go bankrupt. Liquidity is a useful indicator of a company's health as a going concern. Both excessive and insufficient liquidity harm the business. In the business, it ought to be to a sufficient extent. When liquidity is abundant in the business, ideal funds are accumulated, the business becomes less profitable, speculation rises, and money is spent needlessly. Conversely, insufficient liquidity causes disruptions in the way businesses operate.
This research aims to analyse the liquidity performance of Six 2 & 3 Wheelers Companies listed on the BSE during five years, spanning from 2019 to 2023. The current ratio and Quick ratio, are computed for this purpose. Furthermore, hypothesis testing has been done using the ANOVA. Among the 2 and 3 Wheelers companies listed in the BSE during the study period, it was found that TVS Motor Company Ltd had the lowest value of the current ratio and quick ratio, while Wardwizard Innovations and Mobility Ltd Company had the highest average value of both ratios. The null hypothesis in this hypothesis testing scenario has been accepted, and it has been determined that there was no statistically significant difference in the liquidity of the chosen two- and three-wheeler enterprises over the study period