摘要：Liquidity management has a considerable influence on company performance. By analyzing secondary financial company data, this paper seeks to assess the correlation between liquidity and profitability. Through the use of audited annual report of 76 non-financial entities listed on the Macedonian Stock Exchange for the period 2014-2017, the study looks into the association between two traditional liquidity measures, current ratio and acid-test ratio, and three profitability measures, return on assets, return on equity and return on capital employed. Prior to embarking on the statistical research, literature review was performed to obtain basis for the test of hypotheses. Through the use of SPSS software, the dataset comprised of 304 observations generated descriptive statistics, and was subjected to tests of normality and variable correlation testing. The empirical findings designate that liquidity and profitability depict a positive association and that the correlation between current ratio and quick ratio on one hand and ROA and ROE on the other is statistically significant. Moreover, the empirical work reveals a slow trade receivables collection across several Macedonian industries which may damage the long-term solvency of companies, especially in times of recession and economic hardship when liquid funds are a must. In conclusion, this study suggests that the liquidity-profitability relationship should be subject to further scholarship having in mind the immense importance that liquidity management has on the financial health and stability of firms.
