Abstract:
The objective of this research is to examine the liquidity management and its impact on financial performance of listed
manufacturing companies in Sri Lanka. Secondary data was used for the purpose of study. Ten years of data were
collected from the annual reports of listed manufacturing companies. The data were analyzed by using the software
STATA for the descriptive statistics and inferential statistics. The current ratio, quick ratio and interest coverage ratio are
engaged as dimension of liquidity and earning per share and net asset value per share as dimension of financial
performance. The study confirmed that current ratio and interest coverage ratio has a positive impact on earnings per
share while quick ratio has a negative impact on earnings per share of listed manufacturing companies. Further, current
ratio and interest coverage ratio has a positive impact on net asset value per share. Therefore, overall empirical results
show that liquidity management has an impact on financial performance. The findings suggest that the listed
manufacturing companies should try to optimize current assets and interest coverage to boost the financial performance
of the companies. The further studies can be directed by adding different segments and countries
