Liquidity refers to the ability of the entity to pay its debts. It is typically measured by the company's total working capital, which is the balance of existing assets over current liabilities. The term "profitability" applies to the surplus of sales over expenditures. They are so intertwined that cash flow from financial operations is an indicator of liquidity change. Profitability applies to the company's increase of margins; margins equate to revenue-cost; the higher the margins, the greater the company's profitability for the fiscal year. Profitability increases the company's cash reserves and development opportunities. Liquidity, on the other side, relates to the firm's capacity to satisfy short-term and long-term commitments that the company would pay in the long run and the actual component of liabilities in the short run. This paper measures the ratios predicting the profitability in the Public and Private NPFC in India by taking a sample of LIC and HDFC housing finance companies. The results from multiple regressions by SPSS software revealed that the ROCE in public company and Cash to total assets ratio in private sector NBFC predict their profitability.

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Keywords: LIQUIDITY, Profitability, SPSS, ROCE, NBFC.