摘要：Liquidity management is very important for every organization that means to pay current obligations on business, the payment obligations include operating and financial expenses that are short term however increasing long period debt. The significance of the researcher is determined on the basis of following parameters: applied aspects and theoretical contribution of the body of knowledge. The model developed for the study may be used effectively to increase liquidity for the profitability of the company The population has been taken from the chemical sector of Pakistan and from 36 companies we have selected Ten listed chemical companies of Pakistan and we have compiled last 9 years data of these companies from (2001-2009). Solvency ratio has negative and highly significant impact on the ROA and ROE. It means that debt to equity ratio increases then performance decreases. It is also concluded that liquidity has high positive effect over Return on Assets of sector (i.e. if liquidity Rate is increased, ROA will also be increased with greater effect and vice versa) as shown in the article Qasim, S., Ramiz, Ur.Rehman, (2011). Stakeholder also interested in solvency ratios of companies. Suppliers check the solvency position of the companies before delivering the goods. The investors are also interested in solvency position how much the company is risky. Liquidity, solvency and profitability are closely related because one increases the other decreases.
关键词：Liquidity; liquidity management; solvency; profitability; chemical sector
