Liquidity of a company is evaluated with respect to the Liquidity ratios which are calculated to measure the company’s ability to pay short-term debt obligations. Financial ratios play a significant role in estimating the performance of a Company. Ratios are used as a yardstick in financial analysis for evaluation the determinants of liquidity and profitability. From the data reported in the financial statements the researcher has arrived many ratios to analyse the performance and financial position of a firm. In the present study, the researcher has analysed the performance of 15 leading Indian Cement companies in India. Correlation and Regression analysis were done with the help of Financial Ratios to find out the determinants of liquidity and profitability. Profitability in long run contributes to sustained growth of the company. Therefore the Companies must focus on liquidity which is helpful for the smooth functioning of the organization.