In order to identify the ability of the firm to pay its short-term financial obligation, liquidity ratios are used. Every investors use liquidity ratios of the firm for fundamental analysis of the company. If the company faces any trouble in making timely payments of its short term obligation, the company become bankrupt in near future. Liquidity are good measures to know the company is doing well as a going concern. The excessive and inadequate liquidity harm the business concern. It should be in adequate degree in the business. (htt7) If there is excessive liquidity in the business, this situation means the accumulation of ideal fund and there is reduction in profitability of the business, speculations increase, and unnecessary usage of funds. While on the other hand, the inadequate liquidity leads to disturbance in business operations. Here, the study is made on the liquidity analysis of selected automobile companies in India for the period of ten years from 2011-12 to 2020-21.

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Keywords: Liquidity Analysis, Automobile Companies, Liquidity Ratios, Profitability, Investors.