Dynamic relationship among sustainable growth rate, profitability and liquidity of firms: A case study from pharmaceutical sector in Pakistan

  • Muhammad Zubair Memon MBA Student, Department of Business Administration, Sindh Madressatul Islam University, Karachi
  • Zahid Ali Channar Dean, Faculty of Management, Business Administration & Commerce, Sindh Madressatul Islam University, Karachi
  • Shahid Obaid Lecturer, Department of Business Administration, Sindh Madressatul Islam University, Karachi
DOI: https://doi.org/10.58921/jobams.1.2.24
Keywords: Sustainable Growth Rate, Financial ratio, Profitability ratio, Liquidity ratio

Abstract

This paper aims to examine the relationship among profitability, liquidity and sustainable growth rate of pharmaceutical firms which are listed in the Pakistan stock exchange during 2007-2014. By using correlation analysis to examine the relationship among the sustainable growth rate and Return on Assets (ROA), Return on Equity (ROE,) Earnings per Share (EPS), Current and Acid test ratios. It is analyzed that there is significant relationship between sustainable growth rate and quick ratio, current ratio, return on asset and earnings per share while there is no evidence received from this study for relationship between the sustainable growth rate and firm size and return on equity.

JOBAMS Vol 1 Issue 2
Published
2017-07-01
How to Cite
Memon, M., Channar, Z., & Obaid, S. (2017). Dynamic relationship among sustainable growth rate, profitability and liquidity of firms: A case study from pharmaceutical sector in Pakistan. Journal of Business Administration and Management Sciences (JOBAMS), 1(2), 113-124. https://doi.org/10.58921/jobams.1.2.24
Issue
Vol 1 No 2 (2017): JOBAMS
Section
Articles