IMPACT OF RECEIVABLES ON PROFITABILITY AND LIQUIDITY – USING MULTI-LINEAR REGRESSION MODEL
Keywords:
Debtors ratio, debtors to sales ratio, debtors to gross profit, debtors to net profit, debtors to working capital, net profit margin, current ratio.Abstract
ABSTRACT
Profitability and Liquidity management of the company plays a pivotal role to the management. Management of working capital essential as it has direct impact on profitability and liquidity. An attempt has been made in this research paper to study the one of the main components of working capital, i.e., receivables on profitability and liquidity of Nestle India. The paper makes an attempt to study the relationship and influence between receivables and profitability and liquidity of Nestle India. The study is based on secondary data of Nestle for the period from 2006-07 to 2015-16. Multi-linear regression model and ANOVA were used to check the significant impact on the profitability and liquidity of receivables management.