Impact of Liquidity and Solvency Management on Firm Financial Performance: Evidence from Cement Sector of Pakistan

Abstract

The main purpose of this study to determine the effect of liquidity and solvency management on firm financial performance by cement sector of Pakistan, time period is taken from 2016 to 2020.This research is based on secondary data of PSX. Sales growth used for a control variable. To measure the firm performance by ROE and EPS and liquidity is measured by current ratio and solvency is measured by cash and debt ratio. For running the data used descriptive statistics, correlation and regression. Overall results show insignificant relationship of independent variables with dependent variables also show the insignificant negative relationship of sales growth with ROE and EPS.