Liquidity management keep solvent financial position which further help organisation in long-run stability. Managing current assets and current liabilities in such a way that the short-term financial obligations are duly fulfilled without disrupting the smooth operations of the business. The review of the different liquidity management is carried out to stabilize the corporate finance. The stabilization is done on the basis of current ratio, quick ratio, and cash flows. A strong liquidity position lowers insolvency risk, improves credit rating and permits continuity of operations. On the other hand, an excess of liquidity would reduce profitability. Study illustrates that it is necessary to maintain balance between liquidity and profitability which has been established in conceptual debate and numerical example.