The article explores how the profitability of companies in Saudi Arabia is affected by their liquidity levels. By analyzing data from joint stock companies, the researchers found that higher current ratios (a measure of liquidity) are linked to lower profitability. This relationship is especially strong for companies with high current ratios and longer cash conversion cycles. Interestingly, at the industry level, the cash conversion cycle is a more important indicator of liquidity than the current ratio. Additionally, the size of a company also plays a significant role in its profitability within the industry. These findings were consistent throughout the study period.