Abstract

Investors can gain insight into an organization's future by examining its financial performance, which shows whether its operations and profits are on track to increase as well as the outlook for its stock. Financial performance is a snapshot of an organization's economic health and the management's performance. Investors can gain insight into an organization's future by examining its financial performance, which shows whether its operations and profits are on track to increase as well as the outlook for its stock. Financial performance is a snapshot of an organization's economic health and the management's performance. This paper examines the interactions between profitability and liquidity in terms of financial performance and investment options. Based on the study's findings, management must evaluate profitability, solvency, and liquidity in order to fulfill goals like maximizing shareholders' value.