Independent variables are: CR, QR, ITR, DTR, D/E, Total debt ratio

Dependent variable is : ROI

From ANOVA table it is observed that the p-value is less than 0.01. Hence at 99% level of significance we
can reject the null hypothesis. It means there is a significant relationship between liquidity and
profitability.

Suppose if the equation you will get is the following:

ROI=-1.414-0.009*CA+0.97*QA+0.67*ITR+0.54*DTR-0.01*D/E-0.98*total debt

How to interpret:

ROI &CA: If current assets are increased by 1% then the ROI will decrease by 0.009%, all other
independent variables are constant.

ROI &QA: If quick assets are increased by 1% then the ROI will increse by 0.97%, all other independent
variables are constant.

ROI &ITR: If ITR is increased by 1% then the ROI will increase by 0.67%, all other independent variables
are constant.

ROI &DTR: If DTR is increased by 1% then the ROI will increase by 0.54%, all other independent variables
are constant.

ROI &D/E: If D/E ratio is increased by 1% then the ROI will decrease by 0.01%, all other independent
variables are constant.

ROI &Total debt ratio: If total debt ratio is increased by 1% then the ROI will decrease by 0.98%, all other
independent variables are constant.

There are two types of data;

Primary data:
Primary data is those data collected by the researcher for the first time, it is fresh in nature. This
data do notexist in records or publications. Here primary data is collected through departmental
study throughinteractions with different department heads and staffs.
Secondary data:
Secondary data comprises of the data which have already been collected by another
researcher for some other purpose and currently available. The secondary data was collected
from the internal recordsof the company, library reference and internet.