In this paper, liquidity metrics are compared to firm performance predictions for Reliance Industries Limited. A company’s ability to pay its bills is determined by its current, quick, and cash ratios. The research compares these indicators to previous financial periods to determine how well they predict corporate success, including operational efficiency, financial stability, and profitability. Historical financial data can show how liquidity affects success measures like ROE, net profit margin, and return on assets. We can now conclude how cash flow management affects firm performance. In a dynamic corporate environment, strategic financial planning requires enough cash reserves to improve performance, ensure long-term growth, and limit financial risks.