Abstract: Liquidity management is a critical component of corporate financial management that ensures the availability of sufficient short-term resources to support day-to-day business operations while enhancing organizational profitability. Hospital equipment industries operate in a highly capital-intensive environment characterized by significant investments in inventory, extended credit periods, and dependence on institutional buyers, making liquidity management an important determinant of financial performance. The present study examines the relationship between liquidity management and financial performance of selected hospital equipment industries in Madhya Pradesh through a comparative empirical analysis. Primary data were collected from 40 managerial respondents representing ten hospital equipment organizations located in Indore, Bhopal, Jabalpur, and Gwalior. Descriptive statistics, comparative financial analysis, Karl Pearson's correlation, and simple regression analysis were employed to examine the relationship between liquidity indicators and financial performance. The findings reveal that organizations maintaining efficient inventory management, timely receivables collection, and adequate cash flow demonstrate stronger profitability and operational efficiency. The study also confirms a statistically significant positive relationship between liquidity management and financial performance. The paper concludes that effective liquidity management is essential for improving financial sustainability, reducing operational risk, and enhancing competitiveness in the hospital equipment industry.

Keywords: Liquidity Management, Working Capital, Financial Performance, Hospital Equipment Industry, Healthcare Finance, Comparative Analysis.