Article

This research study analyzes the relationship

between liquidity and profitability in a group of companies comprising the

major sugar entities listed on the Karachi stock exchange now merged to

Pakistan Stock exchange using five years data from 2010 to 2014 and to run

definite tests linked to numerical investigations. The aim of this work is to

verify the relationship between these two indicators using the financial data

published by the companies and application of statistical procedures like

summary statistics, correlation and regression analysis using STATA. It was

observed a significant positive correlation between the liquidity and

profitability over the years of study, contradicting the main literature.