Abstract : This study is very important as the study is carried out with an objective of measuring liquidity, solvency, and profitability of five different companies for five different years from different industries. It is believed that the study would be most appropriate for the users to understand and identify the strengths and weakness of the financial positon of the companies to take a decision of investment. The study has used nonprobability sampling to select the companies and to measure with the help of traditional ratios namely Current ratio, Quick ratio, total assets to total liabilities, times interest earned ratio and profit margin ratio as part of the traditional ratios and operating cash flow ratios, cash flow to debt ratio and cash flow margin ratios as part of cash flow ratios. Pearson’s correlation coefficient also measured to find the relationship between traditional and cash flow ratios for selected company. It is found that cash flow ratios are better when compared to traditional ratios and in some cases traditional ratios are better than cash flow ratios. It is also suggested that the company must improve when the ratios are weak, and they should maintain the consistency with the ratios to show strong financial health. It is sure that the investors would be happy to take decision by using the financial statements and the analysis through the ratios as well.

Keywords-Cash Flow, Traditional Ratios, Cash Flow Ratios, Liquidity Position

| DOI: 10.17148/IARJSET.2021.8826