 Vijayakumar A.

(1996) has studied about Assessment of Corporate Liquidity - a

discriminate analysis approach in this research he has revealed that the growth rate
of sales, leverage, current ratio, operating expenses to sales and vertical integration
was the important variables which determine the profitability of companies in the
sugar industry. Also he has studied the short- term liquidity position in twenty-
eight selected sugar factories in co-operative and private sectors. In research a
discriminate analysis has been used by the researcher, to undertaken to distinguish
the good risk companies from poor risk companies based on current and liquidity
ratios. In this study discriminating ‘Z’ scores have been calculated with the help of
discriminate function and according to the ‘Z’ scores the companies are ranked in

the order of liquidity.


 Pratheepkanth (2011) attempted to identify impact of capital structure on

financial performance of firms listed on Colombo stock exchange. Variables of the
study included debt-equity ratio and profitability ratios. Researcher found weak
positive and negative correlation between capital structure and financial
performance measures of selected firms. Regression analysis revealed an
insignificant relationship between capital structure and financial performance of

selected firms during study period.


 Singh and Tandon (2012) in their research paper found that SBI performed well
and financially sound in comparison to ICICI bank while ICICI bank showed
better managing efficiency in terms of deposits and expenditure than SBI. The
study covered a period of six years ranging from 2006-07 to 2011-12. The
financial performance of the selected banks were evaluated with the help of

financial ratios like credit deposit, net profit margin etc.


 Dastgir, Momeni, Daneshwar and Sarokolaei (2012) conducted a study to

 analyse financial statements of firms listed on Tehran stock exchange. A sample of
hundred firms was selected to study their financial performance for a period of six
years from 2005 to 2010, dividing the period into four windows of three years
each. Finally, the researchers came with the result that none of the company

showed stable performance during the period under study.


 Zafar and Khalid (2012) carried out a study on financial performance analysis of
two leading automobile companies in India viz. Maruti Suzuki and TATA Motors.
The study was based on a period of five years ranging from 2006 to 2010.
Financial ratio analysis was used to analyze liquidity, profitability, efficiency,
leverage and market value position of both the companies during the study period.
It was found that Maruti Suzuki had been more efficient and performed better in
terms of liquidity, profitability, solvency position and market value than TATA
motors during the period of study. Finally, the researchers concluded that Maruti

Suzuki had better strategic position in comparison to its competitors. 


 Alfan & Zakaria (2013) carried out a study where the performance of
construction companies in Malaysia were analysed for which they used Altman z-
score model and financial ratios for the period of the study. In addition to that, the
study assessed and predicted the future performance of these companies. A sample
of five large companies was selected for the study. Based on data of six year,
starting from 2004 to 2009, the results showed that the financial performance of
the contractors in Hong Kong had deteriorated very fast during the past few years.
The results of all financial ratios, revealed the extreme difficulty of reversing the

financial performance in the coming years.


 In a study carried out by Dhevika, Latasri and Gayathri (2013) it was attempted
 to find the financial position of City Union Bank. The period undertaken for the
study was from 2007-08 to 2011-12. Various financial ratios like gross profit ratio,
net profit ratio, operating ratio, dividend payout ratio, turnover ratio etc were used
for financial analysis. Finally the study revealed that despite of the price drops in
various products, the company has been able to maintain and grow its market share

contributing to the strong financial position of the bank.


 Niresh & Velnampy (2014) studied the effects of firm size on the profitability of
fifteen companies listed on the Colombo Stock Exchange (CSE) during 2008 to
2012. Return on Assets and Net Profit were used as measures of firm profitability,
whereas Total Assets and Total Sales were used as indicators of firm size.
Correlation and regression analysis were used in the empirical analysis. The results
of the analysis indicated the existence of weak positive relationship between size
indicators and profitability of the listed manufacturing firms while negative
association was found between Asset Turnover and performance measures. Lower
Asset Turnover indicated inefficiency of management in utilizing the assets and

decline in profitability of the firms.


 Saravanan and Abarna (2014) made an attempt to carry out a study where they
aimed to analyze the liquidity efficiency of selected Automobile companies in
India. The study covered a period of sixteen years from 1997-98 to 2012-13.
Researcher selected five companies (Ashok Leyland, Eicher, Forcec, SML and
TATA motors) out of 26 companies in Indian automobile industry. Hypotheses
were tested on the basis of ANOVA one-way analysis of variance test. Through
the study, the researcher concluded that the liquidity position of force motors was
better than other selected companies and suggested that other companies should

improve their liquidity and turnover for better performance. 


 Owolobi, Obiakor and Okwu (2011) made an attempt to study relationship
between liquidity and profitability of certain companies in Nigeria. They choose
three companies, each from Banking, processing and manufacturing industry. The
study covered a period of seven years from 2003 to 2009. Current ratio was taken
as measure of liquidity while operating profit-turnover ratio was taken as measure
of profitability. Correlation and regression analysis were used to determine the
nature, extent and cause & effect relationship between the selected ratios. A model
of perceived functional relationship was specified and estimated with the help of
OLS technique. A negative relation was found between liquidity & profitability in
case of Banking Company while a positive relation was found in case of
processing and manufacturing companies. Therefore, a trade-off between liquidity
and profitability was found in banking business while the liquidity & profitability

reinforced each other in processing and manufacturing businesses. 


 Kumbirai and Webb (2010) carried out a study to investigated the performance
of South Africa’s banking sector for a period from 2005 to 2009. Financial ratios
were used to measure profitability, liquidity and credit quality. A sample of five
large South African commercial banks was selected for the study based on their
market capitalization in the year 2009. The researchers examined if there was any
significant difference in the performance of the banks in 2005-2006 and in 2007-
2008, using student t-test. Finally, it was concluded that while the performance of
banks in 2007-08 deteriorated due to global slowdown in terms of profitability,
banks were able to maintain their liquidity and credit quality during the period of

financial crises. 


 Sangmi and Nazir (2010) carried out a study to evaluate financial performance of
two major banks operating in northern India with the help of CAMEL model. Key
parameters of CAMEL model, Capital adequacy, Asset quality, Management
capability, Earning capacity and Liquidity were analyzed for both the selected
 banks. The study was carried out for the period 2011-2015. Findings of the study
indicated that both the banks have managed their capital adequacy ratio above the
minimum standard of 10%, fixed by RBI. The study also revealed that both the
banks have shown significant performance in asset quality but Punjab National
Bank (PNB) has been more successful in management efficiency than Jammu and

Kashmir Bank (JKB) while liquidity of JKB was better than PNB. 


 Sori, Hamid, Nasir and Mohamad (2006) carried out a study to investigate the
distributional characteristics of failed and non-failed firms listed of the Malaysian
stock exchange from financial ratios. A total of 66 listed firms with 330
observations and 65 variables were examined for a period ranging from 1980 to
1996. Normality test was carried out using Kolgomorov-Smirnov test adjusted to
Lilliefors test. The finding of the study indicated that in all instances, only one
variable (i.e., current asset percent) conformed to normal distribution. Remedial
actions were carried out using three-transformation techniques namely natural log,
square root and square. The natural log transformation outperformed the other
techniques and the square transformation was the least effective. It was concluded
that outlier trimming improved the normality of variable after the data
transformation and this technique was more effective on the specific industry

compared to the mixed industry sector. 


 Kakani and Kaul (2002) carried out a sector specific empirical analysis to
determine the firm characteristics and performance nexus in varying financial and
socio- economic conditions. Forty firms from textile sector and forty two firms
from transportation equipment industry were analyzed over a time span of eight
years ranging from 1992 to 2000. This eight year period was divided into two sub-
periods of four years each, the first period from 1992-93 to 1995-96, being a
period of economic growth and the second one from 1996-97 to 1999-2000, being
a period of relative recession. It was found that firm size was the most important
 factor influencing its financial performance. To this effect, industry level analysis
was performed looking into the nexus of firm characteristics and their performance
numbers in a high performing (transportation equipment) and a low performing
(textile mill) industry. The study led to the conclusion that in an industry level
analysis, size of the firm was the most significant factor influencing its shareholder

value in the liberalized era. 


 Chandrashekaran, Manimannan & Priya (2013) performed a study to measure

the financial performance of private and public sector companies from 5 major
industries in India for a period of 2001 to 2010. Factor analysis, k-means
clustering, discriminate analysis and perceptual techniques were used for data
analysis. The selected companies were divided into three categories i.e. H-class
(high performance), M-class (moderate performance) and L-class (lower
performance). Results of analysis revealed that financial analyst can make use of
these techniques and companies can project their performance on the basis of
financial ratios that were considered in the study.

 In another study Srinivasan et al. (2011) analyzed the performance of selected

Foreign Direct Investment (FDI) assisted pharmaceutical units in India. 23
companies were taken for the purpose of analysis for a period from 1st April 1999
to 31st March 2008. Capital Structure Ratios, Liquidity Ratios, Profitability
Ratios, Du Pont Analysis and Return on Investment ratios were used in the study
to evaluate the financial performance of FDI pharmaceutical units in India. It was
found that most of the units performed well and have shown positive growth while
the remaining units showed downward trend where most of the units were lagging
due to improper utilization of the funds.

 Balasubramanian (2007) tried to evaluate the financial performance of Indian

private sector banks and rank them based on the basis of business per employee,
 return on assets, profit per employee, capital adequacy, credit deposit ratio,
operating profit and percentage of net non performing asset to net advance. A
consolidate ranking was also calculated. Data were collected for a period of three
years ranging from 2003-2004 to 2005-2006 from all Indian private sector banks.
Return on assets was used to measure the profitability of the banks, Profit per
employee and business per employee were used as measure of efficiency of the
employee working in bank, credit deposit ratio was used as a measure of liquidity
position of the bank and Net NPA as a percentage of Net advances, was used to
study the quality of the assets of the bank. Finally, the researcher concluded that
the new generation private sector banks have used the technology and have
utilized the manpower in an effective manner.

 Atkotiya (2005) carried out a study to analyse and evaluated financial

performance of Tea industry in India. The study covers ten reputed tea companies
in India. The selected firms were thoroughly examined for their financial
performance during 1997- 1998 and 2002-2003. Statistical techniques used for the
purpose of financial appraisal involve, among others, regression and correlation
analysis. To test the hypothesis Kruskal Wallis one-way analysis of variance test
was also used.

 Sharma (2010) carried out a study to evaluate liquidity, risk and profitability of
Maruti India Ltd. The period covered under study was from 2001 to 2010.
Liquidity ratios, profitability ratios and calculated risk factor were used to analyze
liquidity, profitability and risk, respectively. Sharma established relationship of
liquidity and profitability of the company with risk factor. T-test was applied for
hypothesis testing. Finally, the Researcher concluded that the company earned

good profit with moderate liquidity but at a higher risk, during study period. 


 Salman and Qamar (2011) carried out a comparative study to investigated

financial performance of two multinational pharmaceutical companies, Glaxo
Smith Kline and Sanofi Aventis using financial ratio analysis. They used various
ratios under the segments liquidity, profitability, activity, solvency, marketability
and growth. The study covered a period of five years covering years from 2005 to
2009. ANOVA and independent t-test were used for comparative analysis. The
result of the analysis revealed that the performance of both the companies had
improved during the period under study. However, Glaxo Smith Kline was leading
Sanofi Aventis during study period.