Profitability And Liquidity Trade-Off: A Study Of Selected Quoted Companies In Nigeria

ABSTRACT

This  study investigates  the  relationship  between  profitability  and  liquidity  trade-off  using selected quoted companies in Nigeria. The study adopted secondary data, source from annual financial  report of  selected  quoted companies in Nigeria, The  regression  result review that current ratio (CUR) and debt to equity (DER) have a negative relationship with return on capital employed while quick ratio (QUR) has a positive relationship with return on capital employed. Furthermore the result review that the relationship between the variables are significant, The study therefore conclude that heterogeneity exist in the effect of liquidity  on profitability  among quoted companies in Nigeria   and thereby recommend that companies  should consider  their

unique circumstance when making policies concerning their leverage structure.