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ANALYSIS OF THE EFFECT OF CURRENT RATIO AND QUICK RATIO ON RETURN ON ASSETSIN FOOD AND BEVERAGE SUB-SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE Fatwa, Nur Apriani; Nurman; Kurniawan, Agung Widhi; Anwar; Amin, Andi Mustika
CURRENT ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE Vol. 2 No. 4 (2023): JULY
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/cashflow.v2i4.776

Abstract

Financial analysis is vital for evaluating company performance, aiding stakeholders in making informed decisions. The Current Ratio and Quick Ratio gauge liquidity, while Return on Assets (ROA) assesses profitability. The Food and Beverage industry, encompassing diverse businesses, faces distinct challenges and opportunities due to changing consumer preferences and competition. Analyzing listed Food and Beverage companies on the Indonesian Stock Exchange provides insights into their financial strategies. This study aims to determine the impact of the Current Ratio and Quick Ratio on Return on Assets in companies within the Food and Beverage sub-sector that are listed on the Indonesian Stock Exchange. The study's population comprises Food and Beverage companies that have been listed on the Indonesian Stock Exchange from 2017 to 2021. A total of 12 companies were selected for observation and data analysis. The collected data underwent tests for Normality, Multicollinearity, and Heteroscedasticity. The analysis employed multiple linear techniques. The findings revealed that the Current Ratio has a positive and significant influence on Return on Assets (ROA), while the Quick Ratio has a negative and insignificant impact on Return on Assets (ROA). Additionally, both the Current Ratio and Quick Ratio, when considered simultaneously, exert an influence on Return on Assets (ROA).
EFFECTS OF WORKING CAPITAL TURNOVER, CASH TURNOVER, AND RECEIVABLE TURNOVER ON PROFITABILITY Amin, Andi Mustika; Riwayat Abadi, Rahmat; Tawe, Amiruddin; Rifadly Abadi, Ridfan; Paramaswary Aslam, Annisa
MOTIVASI Vol 9, No 1 (2024): MOTIVASI Jurnal Manajemen dan Bisnis
Publisher : Universitas Muhammadiyah Palembang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32502/mti.v9i1.7996

Abstract

Purpose– The level of competition between companies is increasing as the business develops, especially when there is intense competition between similar companies. The cigarette industry is growing and becoming increasingly competitive to improve its performance. The cigarette industry significantly reduces the return on assets every year, even though the cigarette industry is a source for the government because taxes and customs are state income and accommodate a large workforce. This study aims to determine the influence of working capital, cash, and receivable turnover on profitability. Design/methodology– The type of research used is an associated method with a quantitative approach. The population in this research is the annual reports of cigarette sub-sector manufacturing companies going public. Samples in this study were taken from 32 companies using a purposive sampling approach. The type of data used in this research is secondary data using financial report data from manufacturing companies in the cigarette industry subsectors in the 2015–2022 period. Multiple linear regression is the data analysis technique employed, while SPSS version 25 is the software used. Findings - The study results show that working capital turnover has no significant effect on profitability, cash turnover significantly affects profitability, and receivables turnover has no considerable impact on profitability.