Liquidity management as a topic has been evolving at a fast pace. New theory of liquidity management puts greater emphasis on decision-making and policy management. Today, the role of cash manager is not to collect and store cash information and organize funds whenever it is needed, but rather to hold a key position and serve as a center for all finance activities. The basic purpose of the research is to assist and develop thorough understanding of the concept and theory regarding liquidity management in a systematic way. To accomplish this purpose, an attempt has been made to present this in a more lucid, simple unambiguous and précis manner so that reader is able to evaluate its implication for the company. The financial accounting approach ratio analysis is used to determine the performance of the liquidity management. And statistical methods such as central tendency measurements, dispersion measurements, Pearson correlation, and Spearman’s rank correlation were used. The findings suggest that the liquidity is managed mostly by owners past experience and data. The originality of the paper is that it conceptualized liquidity management in Indian Automobile Companies as a learning process.
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