Current Assets Research Articles

Effect of Net Profit Margin on Current Ratio in PT. Siantar Top, PT. Kimia Farma and PT. Gudang Garam Companies Period 2020-2022

Net Profit Margin and Current Ratio are two financial ratios used to analyze the financial health of a company. Net Profit Margin is one of the important indicators to assess the financial performance of a company as it provides an insight into how effectively the company generates profits from its operations after considering all costs and expenses. It measures the company’s efficiency in generating profit from each unit of revenue. Companies with a high Net Profit Margin are often considered more attractive to investor because the high net profit indicates the company’s ability to generate strong cash flow and provide good returns to shareholders. Current Ratio is a liquidity ratio that measures a company’s ability to meet its shortterm obligations with liquid assets that can be quickly converted into cash. A high Current Ratio indicates that the company has sufficient current assets to meet its shortterm liabilities. This can provide assurance to investors that the company will not face financial difficulties in paying its obligations when they become due. This research aims to determine the influence of Net Profit Margin on Current Ratio in PT.Siantar Top, PT.Kimia Farma and PT. Gudang Garamwhich were studied on a quarterly basis during the period 2020-2022. This is a quantitative research using secondary data, which are the financial statements of each company accessed through the official website of the Indonesia Stock Exchange (BEI). Data analysis was conducted using simple linear regression analysis with the assistance of SPSS softwareversion 25. The result of the research show that simultaneously or collectively, Net Profit Margin has an influence on Current Ratio and partially, it is found that Net Profit Margin has a significant positive effect on Current Ratio. The coefficient of determination indicates a result of 0,304, which means that rthe influence of Net Profit Margin on Current Ratio is 30,4% while the remaining percentage is influenced by other factors that were not examined in this study.

Analysis of The Effect of Profitability, Liquidity, Firm’s Size, and Dividend Policy on Firm’s Value: Empirical Evidence in Non-Cyclicals Consumer Sector Companies

Important factors in assessing whether a company is good or bad can use firm’s size and financial performance. The aim of this research is to analyze profitability (ROA), liquidity (CR), firm’s size (LN), and dividend policy (DPR) on the firm’s value of the consumer non-cyclicals sector which is listed on the Indonesia Stock Exchange (IDX) in 2017-2020. The research population is the consumer non-cyclicals sector companies which are listed on the IDX as many as 57 companies. The research sample is a portion of the consumer non-cyclicals sector companies listed on the IDX that meet the sampling criteria of 20 companies. The sampling technique uses purposive sampling, including non-cyclical consumer sector companies that issue annual reports and financial statements, have positive profits, and have complete data such as total current assets, total current liabilities, total assets, number of outstanding shares, cash dividends, and share prices for the 2017-2020 period. The data analysis technique for this study used multiple linear regression analysis with SPSS 25 software. The results showed that profitability (ROA), liquidity (CR), and firm’s size (LN) had a positive effect on firm’s value, while dividend policy (DPR) had a negative effect on firm’s value in the consumer non-cyclicals sector listed on the IDX in 2017-2020. The implication of the results of this study is that investors should conduct financial analysis before purchasing shares, such as looking at the ratios of profitability, liquidity, and firm’s size; the larger the firm’s value, the better the firm’s value.

FACTORS AFFECTING FIRM VALUE IN INDONESIA’S PROPERTY AND REAL ESTATE FIRMS

This research was conducted to obtain empirical evidence regarding the influence of profitability, liquidity and leverage as independent variables on the dependent variable, namely firm value in the property and real estate sector listed on the Indonesia Stock Exchange (BEI) with the research year being 2019 to 2021. Parameters used to measure firm value is the book value (PBV) which is calculated by dividing the current share price by the book value per share. Profitability in this research is proxied by Return on Assets (ROA) which is calculated by dividing net profit by total assets. Liquidity in this research is proxied by the Current Ration (CR) which is calculated by dividing current assets by current liabilities. Leverage in this research is proxied by the Debt-to-Equity Ratio (DER) which is calculated by dividing total debt by total equity. The number of samples in this research was 34 property and real estate companies listed on the Indonesia Stock Exchange in 2019 - 2021. The sampling technique used in this research was the purposive sampling method and the analysis technique used to test the hypothesis in this research was using multiple linear regression analysis technique. The statistical tool used to test the sample in this study used SPSS 26. The results of data processing in this study show that profitability has a significant positive influence on firm value, while liquidity and leverage do not have a significant influence on firm value.

Analisis Sistem Akuntansi Penerimaan Dan Pengeluaran Kas Pada PT. Riau Terkini Utama

This study aims to analyze the cash receipts and disbursement accounting system at PT. Riau Terkini Utama with qualitative methods. PT. Riau Terkini is a company engaged in business, namely Web Portals/News sites, the form of a Limited Liability Company. The development of information and communication technology today is much faster than imagined by many parties. In Indonesia, almost 18 million Indonesians are internet literate and will continue to increase at any time. Indonesia is currently experiencing a very rapid development of digital media. Each company is required to apply an accounting system that is in accordance with the conditions of each company. One of the systems used by the company is the cash receipts and disbursement accounting system. Cash problems are matters that require special handling, especially in administration, both for large, medium and small companies. Because in principle cash is a current asset that has the most liquid nature and is easily transferable. As an Information Technology-based mass media, Riauterkini.com can be accessed anywhere, all over the world. This can be proven by the various countries of origin of Riauterkini.com visitors. Until now more than 50 countries have been the origin of visitors to Riauterkini.com. To overcome these problems an internal control system is needed to optimize existing resources and minimize unwanted things that will harm the company. Optimizing resources means increasing the accuracy and thoroughness of data and creating reliable accounting data in its records. While minimizing unwanted things aims to maintain and protect company assets, for example reducing errors, fraud and damage.

Assessment of business activity indicators of enterprises in the conditions of martial law

The article analyzes the efficiency of agricultural enterprises in the pre-war period and the period of Russian military aggression. The author has examined indicators of business activity of agricultural enterprises in Kharkiv region in 2018, 2020 and 2022. A decrease in the entire set of these indicators (asset turnover ratio, current assets turnover ratio, fixed assets turnover ratio, receivables and payables turnover ratios, equity turnover ratio) was established in 2022 as compared to their values in 2018 and 2020. These research results confirmed the deterioration of the performance indicators of agricultural enterprises under martial law. The article estimates reliability of differences between the average values of the analyzed indicators in the groups in 2020 and 2022 ,using the Student's t-test. The probability that the average values may be random is almost 0. That is, the obtained average values of business activity indicators of agricultural enterprises in 2020 and 2022 are reliable and nonrandom. The research, using factor analysis, confirms relationship between the studied features (variables). In particular, the author determined a high degree of correlation in 2020 between the turnover ratio of assets and the turnover ratio of current assets and between the turnover ratio of receivables and the turnover ratio of payables. In 2022, a high degree of interrelationship remained only between asset turnover ratios and current assets turnover ratio. This may indicate a much greater differentiation of turnover ratios of receivables and payables within the population, which in turn, may be due to factors of external influence, in particular, military actions. There is, however, a question on the necessity to conduct a separate study of the influencing factors on the degree of interrelationship between the turnover ratios of receivables and payables in agricultural enterprises. Key words: efficiency, agricultural enterprises, indicators of business activity, reliability, Student's t-test, factor analysis, military actions.

Liquidity of agricultural enterprises in conditions of war

The article is devoted to the generalization of methodological and practical aspects of assessing the liquidity of agrarian enterprises, including the determination of the peculiarities of the condition and ensuring the liquidity of agrarian enterprises of the Kyiv region in conditions of war. The relevance of the study of the liquidity of agricultural enterprises was determined. In 2022, Ukrainian agricultural enterprises were operating in conditions of war, risk, and uncertainty. This was accompanied by military operations on agricultural lands, destruction of agricultural machinery and real estate, disruption of supply chains of raw materials, fertilizers, and sales of agricultural products, involvement of workers in state defense, energy deficit, changes in taxation, etc. The approaches of domestic and foreign scientists regarding the essence of the concepts "liquidity of the enterprise" and "liquidity of the agricultural enterprise" are analyzed. For the purposes of this study and in accordance with generally accepted world interpretations, the authors understand the liquidity of agricultural enterprises as the ability of the enterprise to repay current (shortterm) liabilities at the expense of current assets. For the needs of this study and in accordance with generally accepted world interpretations, the authors understand the liquidity of agricultural enterprises as the ability of the enterprise to repay current liabilities (short-term liabilities) at the expense of current assets. Analytical indicators are chosen to assess the liquidity of agricultural enterprises. These are an absolute indicator (working capital) and three relative indicators (current ratio, quick ratio, cash ratio). The deterioration of the liquidity of agricultural enterprises in the conditions of war was established. On the example of agricultural enterprises of the Kyiv region, a decrease in working capital was determined for a third of the enterprises; 55 % of enterprises reduced current liquidity; 49 % of enterprises reduced quick liquidity; 40 % of enterprises reduced cash liquidity. The correlation analysis did not confirm the existence of a connection between liquidity indicators of agricultural enterprises of the Kyiv region and other indicators of financial condition. This conclusion contradicts the results of research by foreign scientists and foreign experience. Thus, the level of liquidity of agricultural enterprises depends on the internal (corporate) policy of managing current assets and current liabilities of enterprises. Key words: liquidity, cash ratio, quick ratio, current ratio, working capital, agricultural enterprises, war.

Evidence of Financial Ratio Impact on Non-Financial Firm Profitability

Purpose: This study is conducted to determine the factors that affect profitability in Indonesia listed companies by using financial ratios. Four independent variables (liquidity, intangible assets, working capital, and company leverage) were empirically tested to determine their relationships with profitability. Method: The data set covers 100 companies during the period of 2019 – 2021, and a random selection method was used in order to achieve credibility and fairness as much as possible and hypotheses were tested using a pooled ordinary least square regression model Findings: These findings show that firm size, working capital, and firm efficiency have a positive and significant relationship with profitability. In addition, these findings show a negative and significant relationship between liquidity and EPS and debt to equity ratio with ROA and EPS, but show a negative insignificant relationship with ROA. This means that the company suffers from low profitability due to the inefficient use of current assets. Interestingly, leverage shows mixed results, debt to equity ratio shows a negative and significant relationship with ROA and EPS, while leverage ratio shows a positive but insignificant relationship with ROA and EPS. In other words, profitability will increase only up to certain point. Novelty: This study differs than previous studies in number of aspects: First, this study examines the impact of four independent factors and two control variables that some of them are new in the context of research in Indonesia such as intangible assets. Second, previous studies focus on financial industry such as banks, however this study focuses on non-financial industry. Keywords: Financial Ratios; Profitability; Nonfinancial Companies; Indonesia

Performance of the Polish Biofuel Industry after Accession to the European Union in the Area of Sustainable Development Concepts

Poland is an important producer of rapeseed used in the biofuel industry. The rate of production of the biofuel industry increased after Poland’s accession to the European Union (EU). The reasons for these changes are numerous, of which the European Union’s energy policy is the most important. This paper aims to analyze the performance of the biofuel industry in Poland in view of changes in the market. Moreover, I evaluated changes in the biofuel industry after Poland’s accession to the EU. In addition, I analyzed the fixed and current assets of the Polish biofuel. The hypothesis that the price of rapeseed oil is the key determinant of profitability in the biodiesel industry was formulated. A statistical analysis proved the second hypothesis stating that the net profit of biodiesel companies depends on biodiesel production to the greatest extent. The time range of the analysis was 2005–2021. To analyze the economic performance of the biofuel industry in Poland, these changes were used. A regression analysis to find factors influencing the economic performance of the biofuel industry was used. More and more oils are used for the production of first-generation biofuels. Refined rapeseed oil also increased from 386.5 thousand tons to 780.6 thousand tons. Such numbers demonstrate the development of biofuel markets.

Are shariah and non-shariah firms’ capital structure determinants and financial performance related? Evidence from Malaysia

This comparative analysis is an attempt to explore the core differences among the capital structure determinants of Malaysian Shariah and non-Shariah firms. Besides, this investigation also explores which financial category in Malaysia, either Shariah or non-Shariah, maintained its performance, i.e., earnings; during the peak period of the COVID-19 pandemic and to what extent their performance is related. For analysis purposes, this investigation used 454 firms’ 17 years’ financial data, i.e., 2005-2021. The Panel Data Static models are executed to perform the empirical investigation. The debt-to-equity ratio is selected as a dependent variable, whereas total assets, sales, current assets, growth, return on equity, non-debt tax shield, and earnings per share are nominated as independent variables. The results indicate that fixed assets and growth are core determinants for both types of firms. This endorses the validity of these two investigated determinants for the whole Malaysian firm. Moreover, current assets, non-debt tax shield, fixed assets, growth, and earnings per share are also observed as main and significant determinants for Shariah-tagged firms. The positive significance of tangibility, non-debt tax shield, and liquidity explain why the Trade-off theory is more dominant in the Malaysian context. Besides, the outcomes obtained from descriptive statistics and Independent Two-sample t Test explain that both financial categories of Malaysian listed firms maintained negative earnings during the COVID-19 peak period, i.e., 2020. The results will help policymakers devise the best financing model i.e., Shariah and non-Shariah, specifically during the uncertain financial fiascos.

ANALISIS KINERJA KEUANGAN TERHADAP RETURN SAHAM PADA PERUSAHAAN SUB SEKTOR FARMASI YANG TERDAFTAR DI BURSA EFEK INDONESIA 2018-2021

This type of research is descriptive and verification using secondary data, while the sampling method uses purposive sampling in order to obtain 7 companies from 12 Pharmaceutical Sub-Sector companies listed on the Indonesia Stock Exchange. The data analysis methods in this study are descriptive statistics, multiple linear regression analysis and hypothesis testing using SPSS 26 software. The results show that the development of CR, DER, EPS and ROA in Sub-Pharmaceutical companies has increased and decreased as well as the development of stock returns in the Pharmaceutical Sub-Sector from 2018-2021 fluctuated every year. (1) Partially DER has an effect on stock returns. Meanwhile, CR, EPS and ROA have no effect on stock returns. Then simultaneously that H5 is rejected which means that there is no effect of Current Ratio, Debt to Equity Ratio, Earning Per Share and Return On Assets on stock returns.Keywords: : Current Asset, Debt to Equity Ratio, Earning Per Share, Return On Asset, Stock Return

PENGARUH RETURN ON EQUITY, LEVERAGE, DAN LIKUIDITAS TERHADAP KESULITAN KEUANGAN

This study aims to determine the effect of return on equity, leverage and liquidity on financial distress in non-financial companies listed on the Indonesia Stock Exchange during 2017 -2020. The sample was selected using the purposive sampling method and the valid data were 62 companies. The data processing technique used multiple regression analysis assisted by EViews 12 for windows released 2020 and Microsoft Excel 2016. The results of this study indicate that liquidity has a significant effect on the company's financial distress, while return on equity and leverage have no effect on corporate financial distress. The implications of this research are the need for processing the company's current assets properly to be able to reduce the risk of experiencing financial distress.

A STUDY ON WORKING CAPITAL MANAGEMENT” AT MUSASHI, AUTO PARTS INDIA PVT LTD, DODDABALLAPUR

Working capital management is a critical aspect of financial, management for businesses of all sizes and industries. This paper provides an overview, of the concept, of working capital, its components, and its significance in ensuring the smooth operation and financial, stability of a company. The primary objective of working capital management is to strike a balance between the current assets, and current liabilities, confirming that a company has sufficient liquidity to meet its short-term obligations while optimizing its use of resources. This paper delves into the various components of working capital, including cash, accounts receivable, inventory, and accounts payable. It explores strategies, and techniques that businesses can employ to effectively manage these components, such as cash flow, forecasting, inventory control, and credit management. The paper also discusses the role of technology, and financial tools in improving working capital, management processes Keywords: Motaal’s Comprehensive Test , Working Capital , Current Ratio , Working Capital Turnover Ratio , Net profit to Current Assets

The Effect of Liquidity and Leverage on Tax Aggressiveness. Case Studies on Manufacturing Companies in the Food and Beverage Industry Sector Listed on the Indonesian Stock Exchange for the 2019-2021 Period

Tax aggressiveness as an action that aims to reduce the tax burden through tax planning using methods that are or are not classified as tax violations (Hadi & Mangoting, 2014). Richardson and Lanis (2012) define tax aggressiveness as the desire and action to minimize the tax burden by means of legal, illegal, or both.
 The first factor that can influence corporate tax aggressiveness is liquidity. Liquidity is the ability of a company to fulfill its short-term obligations which must be paid immediately in one period or less by using its current assets. Tax is one part of the company's short-term obligations. In addition, a company's financial decisions which are explained by the company's leverage ratio are also predicted to have a significant effect on the emergence of tax aggressiveness. The higher the leverage of a company, the higher the company's dependence on asset financing through debt and loans or loans to companies that have a fixed burden in the form of interest expenses. This type of research is quantitative research, where data is presented in the form of numbers and can be measured and tested using statistical methods.
 The data used in this study is data on the annual financial reports of manufacturing companies in the food and beverage sub-sector that are listed on the Indonesia Stock Exchange (IDX) for 2019-2021. Of the entire population, there were 21 companies that met the criteria used as samples, the data obtained from the nine companies totaled 63 data.

PENERAPAN ISAK 35 TENTANG PENGELOLAAN LAPORAN KEUANGAN ENTITAS BERORIENTASI NON LABA Studi Kasus Pada Vihara Dhammadipa Arama Batu Malang

Abstract The presentation of financial reports for non-profit organizations is regulated in the Statement of Financial Accounting Standards (PSAK) 45 since 1997 which was later updated with the Interpretation of Financial Accounting Standards (ISAK) 35 which became effective in 2020. The purpose of this study was to look at the presentation of financial reports at the Dhammadipa Arama Temple accordance with ISAK 35 and its benefits. The type of research used in this study is a descriptive qualitative method with a case study approach. The form of financial reports at the Dhammadipa Arama Batu Temple in 2022 has been adjusted to ISAK 35 which consists of a Comprehensive Income Statement, a Statement of Cash Flows, a Report on Changes in Net Assets, a Report Finance and Notes to Financial Statements. The Dhammadipa Arama Monastery has many benefits that will be obtained by implementing ISAK 35 in financial reports including improving the quality of financial reports, completing elements of financial reports and making it easier to find out surplus (deficit), being able to see how much current assets and non-current assets they have.

Discriminating the default risk of small enterprises: Stacking model with different optimal feature combinations

Small enterprise default discrimination establishes a risk discriminant model based on financial data, non-financial data, and external macro conditions of small enterprises to obtain their default discriminant. This study constructs the final default discriminant model, taking the predicted default probability vectors from the first modelling as independent variables. From the 2e feature combinations composed of e features, it maximises the default discriminant precision of the same training sample. Accordingly, the study inversely infers three optimal feature combinations corresponding to three models, including logistic regression, support vector machine, and linear discriminant analysis, ensuring the discrimination accuracy of the first modelling by the stacking method. Moreover, five features—industry prosperity index, EBITDA margin, current assets turnover ratio, net profit, and per capita disposable income of urban residents—account for 11% of the features in the optimal feature combination, but their importance accounts for 63%; thus, they are critical to the default risk of small enterprises. Further, the macro features significantly influence the default risk of small enterprises. For example, the importance of four macro features—industry prosperity index, consumer price index, per capita disposable income of urban residents, and Engel coefficient—accounts for 26.26% of the features in the optimal feature combination. Notably, the importance of the ‘industry prosperity index’, which is the greatest influencing factor in the feature combination, accounts for 17.63%. Ultimately, the discrimination accuracy of the proposed model is better than that of the seven classical default discriminant models.

ANALISIS PENGARUH PERPUTARAN KAS, PIUTANG, DAN PERSEDIAN TERHADAP PROFITABILITAS PERUSAHAN PT. BUMI IRIAN INDAH (BII)

This research aims to determine the analysis of the influence of working capital/current assets on profitability. This working capital / current assets turnover includes cash turnover, inventory turnover, and accounts receivable inventory. Bumi Irian Indah Company's financial report is used as secondary data in this research with a time period of 2018-2020. Multiple linear regression, T test and F test are used as analysis methods. The conclusion of this research analysis is that working capital/current asset turnover has a simultaneous effect on profitability, while only partial inventory and receivables have an effect on profitability.

Consciousness and Greed: A Mathematical Model of Human Greed and Its Behavioral Implications

This study presents and validates a novel mathematical model aimed at illuminating the relationship between consciousness and human greed. The model, at its core, views greed as a function of an individual's scope of desires and their appreciation for what they currently possess. The ambition here is to capture the entire gamut of human aspirations, ranging from material to emotional and spiritual, while highlighting the role of consciousness in their modulation. Leveraging a cross-sectional survey design and a diverse demographic sample, two primary variables are quantified: 'Quantity of Desires,' which encapsulates the range and intensity of an individual's aspirations, and 'Appreciation of Possessions,' denoting the value attributed to current assets, achievements, and life circumstances. The resulting data serve to calculate a 'Level of Greed' score for each participant. Validation of the model is undertaken through a two-pronged approach: cross-validation with established psychological scales, including the Satisfaction With Life Scale (SWLS) and the Aspiration Index, and an assessment of participant feedback concerning the alignment of their calculated 'Level of Greed' score with their perceived lifestyle and level of satisfaction. The study's findings endorse the mathematical model's effectiveness, showcasing its potential for quantitative analysis of the intricate intersection between consciousness and greed, ultimately enhancing the understanding of how consciousness influences human desires and behavioral outcomes.

Analisis Manajemen Modal Kerja (Studi Kasus PT Bank Tabungan Negara Tbk Tahun 2019-2022)

Working capital management refers to two concepts: gross working capital, which is the total current assets minus current liabilities, and net working capital, which is the difference between current assets minus current liabilities. This study uses a descriptive method with a quantitative approach. The purpose of working capital management is to ensure the availability of sufficient net working capital to ensure the company's liquidity. The . fluctuations in the 2019-2022 period. These fluctuations occur because net working capital has increased and decreased, but total assets over the past 4 years have increased. The bank can suppress its current liabilities in order to increase the bank's income as a result, bank BTN has stable current liabilities. in 2019 the capital turnover ratio was higher than the capital turnover ratio that occurred in 2020, 2021 and 2022. This right means that liquidity that occurred in 2019 was indicated to be lower than in 2020, 2021 and 2022.

Heat health action plans: a European perspective

Abstract Background With average temperatures on the rise, collaboration of European countries regarding climate change adaptation and climate resilience of their health systems is becoming an important lever for protecting older people, while recognising the diversity of older people's living environments, socio-economic conditions, as well as intersectionalities with gender and race within different subgroups of older people. Heat-health action plans (HHAPs) are one example where a common European framework (e.g. within the WHO-European region) may guide general measures, yet without being able to account for context-specific, geographic and population-specific conditions in each country, or at the subnational level. Objective Along WHO-Europe's framework for HHAP, this presentation aims to provide an overview of the core elements in place at the European level that public health officials can utilise to protect older people from heat and/or prevent heat impacts on older people, and will highlight the barriers and enablers for action. The presentation will also examine current levers and assets that exist at European, sub-national and local/municipal level to strengthen responses. Results Using examples from across European countries, the presentation summarises the current strategic and policy context framing responses to heat health for older people and will highlight what has worked well and where further work needs to be done. The presentation will also inspire dialogue among attendees, sharing knowledge from their countries and contexts. Conclusions A more targeted approach leveraging existing strategies and assets is needed to support policy-makers in implementing interventions to protect older people within the context of current HHAPs at different governance levels.

Laporan Keuangan untuk Mengukur Kinerja Keuangan Berdasarkan Rasio Likuiditas dan Solvabilitas pada PDAM Prabujaya Kota Rabumulih

This research aims to determine the liquidity and solvency ratios to measure financial performance at PDAM in Prabumulih. This research uses types of quantitative descriptive research. This research uses a descriptive method to describe research objects or research results. The data in this research was collected through documentation, observation, and methods of interviews. The research results show the liquidity ratio, calculated from the analysis of PDAM Tirta Prabujaya City Prabumulih’s current ratio and quick ratio for 3 (three) last year, was good. Because the amount of current assets available is huge while the amount of current liabilities is small, this can be seen in the ratio value Liquidity in 2020, 2021 and 2022. The value of the Current Ratio is 8.08 times, 7.48 times and 6.24 times; the value of the Quick Ratio is 6.39 times, 5.78 times and 5.23 times, and the Cash Ratio values are 96%, 30% and 17%. Solvency Ratio, the overall financial performance of PDAM Tirta Prabujaya Prabumulih City during the last 3 (three) years it has been in good condition because its total assets and the company's available capital is greater than the total debt it has company. This can be seen in the 2020, 2021 and 2022 ratio values. The value of Debt to Assets Ratio of 54%, 38% and 69%. Next, the Debt to Equity, Ratio values of 92%, 23% and 94%.