This paper is about the relationship between liquidity and profitability in the Philippine listed Industrial Subsector of the Philippines. Liquidity and profitability are important factors for a company to be able to manage its working capital. Through working capital management, the company will then be able to make sound judgment regarding decisions in its day to day operation.
Liquidity as profitability determinants uses the financial ratios of liquidity and profitability in order to arrive and determine relationship significance for liquidity which is the dependent variable of the study are current ratio, quick ratio while the dependent variable which is the profitability consists of net profit, return on asset and return on equity ratios.
Statistical tools used to arrive the conclusion and recommendations of the study are the correlation and panel regression. This study will form and provide significance to the management of companies on the Industrial Sector, to the general public and the academe as well
