Impact of liquidity, leverage, inflation on firm profitability an empirical analysis of food sector of Pakistan

Abstract

This study focused on investigating the collision of leverage, liquidity and inflation on firm’s profitability of the food industries of Pakistan. That is why, three self-sufficient variables its is independent, i.e. leverage, inflation and also liquidity were being taken into consideration to spot the impact on dependent variable, i.e. firm’s earning (profitability).The population chosen due to this certain study is usually foodstuff sector involving Pakistan. That research come to the conclusion that there's a solid bad negatively relating to the changing control leverage, liquidity, inflation and also the firm’s earning(profitability)..Liquidity ratios are insignificant relationship with return on asset and return on equity. Debt ratios are negatively associative with return on assets and return on sales. Profitability ratios are positively associative with return on assets and return on equity. However carefully assessments have to be taken in relation of firm’s profitability variations, by keeping in vision the importance of leverage and liquidity of the firms, which in turn would help in proposing financial changes in future