Finanse, Rynki Finansowe, Ubezpieczenia

Abstract: Objective – The objective of the paper is to present an analysis of the condition of companies in respect of profitability and financial liquidity, as well as to attempt to establish the relationship between those two areas of analysis, enabling fuller evaluation of the financial standing of enterprises. Research methodology – The empirical research presented in the article was conducted in accordance with this concept on the example of the chemical industry companies listed on the WSE for several years. The presented research results were obtained based on the conducted literature study, economic analysis methods (namely, both liquidity and profitability were measured in accordance with the static and dynamic approach), and statistical methods (correlation analysis) used. Result – As a result of the conducted research attention was drawn to the considerable significance of the liquidity and profitability analysis in the evaluation of the financial standing of enterprises. A correlative relationship was established between these two areas of ratio analysis for joint stock companies of the chemical industry. Originality/Value – the article emphasizes the significance of the conducted analysis of enterprise profitability which is crucial in the evaluation of the financial standing of an entity but only in the case of the equal study of the situation in terms of the maintained financial liquidity.