The concept of liquidity within a business is vital for the understanding of financial management as it is the basic criteria of testing the short term liquidity position of the enterprise. In this study, liquidity is considered to be short-term liquidity which is the capability of the organization to repay its current liabilities out of its current assets. Liquidity ratios measure the ability to meet its current obligations when they fall due for payment. The aim of studying the short-term analysis is to analyze the capability of the organization to meet out the short-term obligations but from its short-term resources only, that is, to analyze the risk associated with the supply of short-term capital to the organization. The study is on the liquidity position of Maruti Suzuki and Tata Motors. With the help of key ratios and statistical the liquidity position is analyzed. These are most vital and reliable indicators in reckoning the liquidity position. This paper expresses the comparative analysis of liquidity of Maruti Suzuki and Tata Motors from 2011-12 to 2015-16.