Abstract

During the financial year 2021-22, a financial analyst was analyzing the stock price of Marico Limited. After understanding the profitability position, he wanted to analyze the liquidity position of the company amid the prevailing uncertainty caused by the Covid-19 pandemic during year 2020-21. The present case study can be helpful in discussing the concepts of short term liquidity of a company and the various ratios and criteria to be considered in analyzing and determining the short term solvency of a company.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The concept of liquidity analysis
• The application of liquidity ratios
• The liquidity position of Marico Limited

Keywords

Liquidity analysis; Short-term solvency; Current Assets; Current Liabilities; Liquidity Ratios; Current Ratio; Quick Ratio; Cash ratio; Marico Limited