A DISCRIMINANT ANALYSIS AND PREDICTION OF LIQUIDITY PROFITABILITY

Abstract

This paper examines predictive ability in respect of liquidity and profitability position of a company through discriminant analysis. Using two liquidity and profitability ratios each as input, the study has developed an index through the technique of discriminant analysis and at the same time liquidity and profitability performance have been tested on the basis of D-score and cut off score. For the purpose of analysis Indian private sector pharmaceutical companies have been used.