Current Liabilities Research Articles

COMMON SIZE ANALYSIS AT PT ADARO ENERGY INDONESIA TBK BEFORE AND DURING COVID – 19

The global health crisis in the form of the Covid-19 pandemic has a major impact on national economic activities and the global economy. The Covid-19 phenomenon is very influential on companies - large to small companies. This analysis uses the common size method. This method is very helpful in reading financial statements. Changes that occur in the statement of financial position or profit and loss can be detected quickly and permanently. The study intends to analyze the financial performance of PT Adaro Energy Indonesia Tbk before and during Covid-19 using the common size analysis method. In this study, the technique of comparative descriptive analysis between years was used. The research uses annual report data. The data used is the time range from 2018 to 2021.The results of the analysis of the research show (1) the company's short-term financial condition in terms of current assets did not experience significant changes in 2018- 2021. (2) short-term financial conditions seen from current liabilities tended to increase during the year, on the contrary, long-term liabilities decrease. (3) For equity from 2018 to 2019 and from 2020 to 2021, it has decreased but is still around 59%. (4) Common size analysis of PT Adaro Energy Indonesia's income statement shows that the percentage of net profit to operatingincome will increase in 2021 to 25.7%.

The Effect of Financial Risk, Operational Risk, Lending Interest Rate, Firm Size, and Inflation on Financial Distress in Ten Telecommunications Companies with the Largest Market Capitalization in Asia 2013-2022 Period

This study intends to analyze the effect of financial risk, operational risk, lending interest rate, company size, and inflation on financial distress in 10 telecommunications companies with the largest capitalization in Asia 2013-2022 period. The research uses financial data from these 10 telecommunications companies with the largest capitalization in Asia over the past 10 years. This research adopts a quantitative approach with secondary data listed on the Asian stock exchanges. The analysis method used is logistic regression, which is employed to examine the relationship between independent variables and the dependent variable. The research results indicate a negative correlation for lending interest rate and a positive correlation with inflation. A decrease in lending interest rate will increase the risk of financial distress for companies, as seen in the tendency for an increase in current liabilities when there is a decrease in lending interest rate. Inflation has a significant positive effect on financial distress, meaning that an increase in inflation will increase the risk of financial distress. The research results also show that financial risk, operational risk, and company size do not have a significant influence on financial distress in the largest telecommunications companies in Asia during the period 2013-2022. Keywords: financial distress, financial risk, firm size, inflation, lending interest rate, operational risk, Telecommunications Company.

Analysis of the Effect of Return on Assets (ROA) and Current Ratio (CR), on Stock Prices with Earnings Per Share (EPS) as a Moderation Variable (On the Mining Sector on the IDX 2020- 2022)

In the investment world, investment decisions are important in determining future investment success. In capital market activities, stock prices are a very important factor and need to be considered by investors because stock prices show the performance of the issuer. One of them is a mining company in Indonesia. The stock price also shows the value of the company, with the higher the stock price of a company, the higher the value of the company and vice versa. Return On Assets (ROA) is a ratio of profitability that shows the result (return) on the total assets used in the Company. The current ratio (CR) is a liquidity ratio that compares the company's current assets with the company's current liabilities. Earnings per share (EPS) is an important indicator in fundamental stock analysis, which describes how much profit a company generates for each share owned by an investor. This study uses regression analysis which aims to determine the effect of variable performance, at least in terms of ROA, does not affect the value of the company's shares in the time period studied. The Current Ratio (CR) also does not affect the share price of mining companies on the Indonesia Stock Exchange in the 2020–2022 period. This means that the company's liquidity level as measured by CR does not significantly affect the company's share price in the market. In the mining industry listed on the Indonesia Stock Exchange in the 2020–2022 period, earnings per share (EPS) does not affect the effect of Return On Assets (ROA) on stock prices. In other words, a change in a company's EPS does not change how ROA affects its share price. Earning Per Share (EPS) is also not able to moderate the influence of the Current Ratio (CR) on share prices in the mining industry which are listed on the Indonesia Stock Exchange in the 2020–2022 period. This means that a change in a company's EPS does not change the way CR affects the company's stock price.

ANALISIS LAPORAN KEUANGAN TERHADAP PENILAIAN KINERJA KEUANGAN PT TRANS MULTI CARGO KOTA BATAM

This study aims to determine the company's financial performance as assessed by financial ratio analysis at PT. Trans Multi Cargo from 2018 to 2021. The data analysis method used is a quantitative descriptive method using measurements of liquidity ratios, solvency, activity and profitability. based on the results of research on the liquidity ratio in the 2018-2021 period it can be said that it is not good because the company has difficulty paying off current liabilities using current assets owned by the company. Based on solvency in the 2018-2021 period, it is quite good where it has increased every year, this is due to low corporate spending originating from loans. Based on activities in the 2018-2021 period, it is quite good where every year there is an increase in this situation. This situation must be maintained so that the use of company assets is more effective and efficient. Meanwhile, based on profitability in the 2018-2021 period, this shows an increase in profits or profits generated in the company.

THE EFFECT OF RESERVES AND LIABILITIES IN ENSURING THE LIQUIDITY OF INSURANCE AND TAKOFUL ORGANIZATIONS: THE CASE OF THE INSURANCE MARKET OF UZBEKISTAN

This article discusses the impact of insurance reserves and current liabilities on the liquidity level of insurance organizations operating in Uzbekistan. Maintaining the level of liquidity plays an important role in ensuring the solvency of insurance companies. Therefore, having a significant share of liquid assets in its operating activities, as well as being able to cover its obligations, is one of the topical issues. In this research paper, we attempted to model this relationship.

Unicorns’ growth and financial flexibility before and after the IPO

Increasing number of unicorns worldwide is attracting researchers' attention to analyze their phenomena from their growth and financial flexibility interaction perspective. Unicorns as young companies have many external and internal environment development elements affecting their financial performance while going public with an IPO. Thus in the paper, we target to analyze factors revealing unicorns' growth and the relationship between financial flexibility and unicorns’ growth before and after the IPO process. The financial data of 20 unicorns from Asia with IPOs from 2009 to 2018 was collected for the research. A literature review was performed to develop the frame and variables of growth and financial flexibility for research design. OLS regression was used for the analysis. Our main findings show the significant negative impact of EBIT on the growth of unicorns before the IPO, which becomes positive after the IPO. The impact of cash or debt on the growth of unicorns is negative after the IPO. The growth of unicorns is significantly influenced by capital expenditures and current liabilities affected by their management policies. Our research fills the existing gap in the literature by analyzing the interaction between the growth and financial flexibility of the high-growth unicorns in the context of the IPO and enriches existing literature by the combination of different theories to support the research, thus further research could focus on a more in-depth analysis of these processes.

ANALISIS PENERAPAN AKUNTANSI PADA KOPERASI KONSUMEN PEGAWAI REPUBLIK INDONESIA XYZ

This research was conducted at the XYZ Republic Of Indonesia Employee Consumer Cooperative. This study aims to determine whether the application of accounting ar cooperative is in accordance with generally accepted accounting principles. The data used are primary data an secondary data. Data collection techniques used are interviews and documentation. Several deficiencies can be found in this study, some of these deficiencies ar that cooperatives places risk fund accounts in current liabilities, and cooperatives do not explain reserve funds in the Notes To Conslidated Financial Statements. After conducting research on cooperative, it can be concluded that the application of accounting to the XYZ Republic Of Indonesia Employee Consumer Cooperative is not accordance with generally accepted accounting principles.

ANALISIS ARUS KAS UNTUK MENILAI KINERJA KEUANGAN PADA PT KERETA API INDONESIA (Persero)

The purpose of this studi to analyze the financial performance of PT Kereta Api Indonesia (Persero) in 2019- 2021 using a cash flow measurement tool. The ratios used in this study are five ratios including the ratio of operating cash flows to current liabilities, the ratio of operating cash flows to interest, the ratio of operating cash flows to capital expenditures, the ratio of operating cash flows to total debt and the ratio of operating cash flows to net income. The research method uses secondary data, namely the financial statements of PT KAI (Persero) for 2019-2021. The sampling technique uses a purposive sampling method where samples are taken with a specific purpose. The sample in this study is the financial statements that have been audited for three years. The results show that the ratio of operating cash flow to interest, the ratio of operating cash flow to capital expenditure has a fairly good performance. As for the ratio of operating cash flow to current liabilities, operating cash flow to total debt and the ratio of operating cash flow to net income, the performance was not good.Keywords : cash and cash equivalents, cash flows, financial reports, financial performance

Effect of Debt Capital on Financial Performance of Listed Pharmaceutical Companies in Nigeria

This study investigated the effect of debt capital on financial performance of listed pharmaceutical companies in Nigeria. The ex post facto research design was adopted for the study with a population of ten (10) listed pharmaceutical companies in Nigeria as listed by the Nigerian Exchange Group in 2021. Data were retrieved from the annual reports of the selected listed pharmaceutical companies for the period 2013 to 2017. Multiple regression analysis was used to analyze the data gathered with the aid of Stata12 statistical software. The study revealed a negative and insignificant relationship between debt capital and profit before tax of listed pharmaceutical companies in Nigeria. it also revealed a positive and insignificant relationship between debt capital and return on assets of listed pharmaceutical companies in Nigeria. Therefore, it was recommended that management of listed Pharmaceutical companies should not adopt aggressive total debt financing policy. This means that the managers of listed Pharmaceutical companies should concentrate on using more current liabilities to finance assets, relative to debt capital. Also, the government should regulate the financial sector through various monetary and fiscal policies in order to reduce the cost of borrowing given that many Pharmaceutical companies rely on external borrowing to finance their cash requirements. As it has shown in this study that debt capital has no significant relationship with firm’s performance.

Discounting of Deferred Taxes: Theoretical Aspects

The objective of the study is to justify the prohibition of discounting deferred taxes by harmonising their essence with the concept of fair value. The work is theoretical in nature, standard scientific methods have been used, including the collection of theoretical information, formalisation, as well as analysis, synthesis, observation, and comparison. This article summarizes the results of research in the field of deferred tax discounting over the past 60 years and attempts to reconcile the essence of it with the concepts of fair value. The issues of deferred tax discounting have long been the subject of scientific research and still remain unresolved. In the second half of the twentieth century, the key problem was the choice of an acceptable discount rate against the background of lack of understanding of the essence of deferred taxes. Subsequently, the vector of research has changed towards determining the economic value of deferred taxes without reference to the theory of deferred taxation. The author proved that under the concept of fair value, deferred tax liabilities (DTL) do not need to be discounted because the assessment takes into account the minimum economic benefits generated by the asset as of the reporting date and under prevailing market conditions. It is shown that the balance sheet reflects the theoretical relationship between deferred tax liabilities and current income tax liabilities. The conclusion is made about the modifiability of deferred tax liabilities into current liabilities in terms of static accounting ideology while observing the going concern principle. The problems of applying valuation at fair value measurement that does not take into account the current tax position of the organization; as well as the place of deferred taxes in the capital accounting equation are raised. The results of the research have theoretical significance and can be used within the framework of improvement of the accounting legislation.

Factors affecting earnings management: current tax expenses, deferred tax liabilities, and deferred tax expenses

Previous or relevant research is fundamental in a study or scientific article. Previous relevant research strengthens the theory and phenomena of the relationship or influence between variables. This article reviews the factors influencing earnings management, namely current tax, Deferred Tax Liabilities, and Deferred Tax Expenses, a literature study on tax accounting. This article aims to build a hypothesis on the influence between variables to be used in further research thesis literature review article results in e are: 1) the current tax burden affects earnings management; 2) current tax liabilities affect deferred tax; and 3) deferred tax expense affects earnings management.

LQ45 Company Profitability on the IDX for the 2021 Period Through the Effect of the Current Ratio and Receivable Turnover

Purpose: The purpose of this study was to find out and analyze the Influence of the Current ratio and Receivable turnover on Profitability. The theoretical framework: Evaluating profitability through various ratios, companies can be classified into two categories: margin ratios and return ratios. Liquidity, activity, and profitability are important issues to be continuously monitored, that’s why the study uses the Current ratio and the Receivable turnover as tools in finding the relation between the Current ratio and Receivable turnover on Profitability partially and simultaneously. Methodology: The research method used in this study is a descriptive survey and an explanatory survey. The unit of analysis in this study is the LQ45 company’s financial statements on the IDX for the 2021 period. The type of investigation is causality, and the time horizon in this study is time series. This study uses multiple regression analysis. Finding: Partially and Simultaneously, the Current ratio and Receivable turnover have a significant effect on Profitability. Receivable turnover is more dominant in influencing Profitability, it becomes the first priority in increasing Profitability. Research Policy Implications: In efforts to increase profitability, the main priority is to have increased Receivable Turnover to maintain business continuity. To increase accounts receivable turnover, these companies are expected to be able to encourage acceleration and accuracy of collection of accounts receivable, with the intention that investment is not fixated on just one sector, for example only focusing on fixed assets, so that the company's financial stability can be maintained properly. Increasing the current ratio by optimizing the elements of current assets to cover all of the company's current liabilities. Originality/value: Companies are advised to consistently improve accounts receivable turnover; so that the company's financial performance will improve.

Assessing the Impact of Liquidity Ratio Requirements on the Financial Performance of Commercial Banks in Kenya

In practice, some commercial banks in Kenya are presently facing liquidity challenges for instance the National Bank, Consolidated Bank, and Development Bank of Kenya. For instance, as of December 2017, the Development Bank of Kenya posted a negative liquidity position at 21.6% against the required legal threshold of 20%. For the National Bank of Kenya, the close of 2017 saw the total deposit liability standing at negative 5.5%, while core capital to total assets averaged negative 7.9%. As of 2018, NBK registered a drop in profit by 84% to stand at Kshs. 21.97 billion. The findings were that liquidity ratio requirements (β=0.345, p<0.05); cash reserve ratio requirement β=-0.008, p<0.05); loan deposit ratio requirement (β=-0.020, p<0.05) & capital adequacy ratio requirement (β=0.032, p<0.05) are significant predictors of financial performance of commercial banks in Kenya. The study concludes that liquidity requirements are a significant predictor of the financial performance of commercial banks in Kenya. The study recommends that finance managers of commercial banks in Kenya should strive to balance current assets and current liabilities to ensure they meet their obligations as they arise. The marketing managers of commercial banks in Kenya should invest more efforts in acquiring more customers for increased mobilisation of deposits. The loan officers and credit managers working in the commercial banks in Kenya should speed up the process of credit appraisal of customer loan application process to increase the uptake of loans which are key sources of interest income to these institutions. The shareholders of the commercial banks in Kenya should ensure that their institutions are adequately capitalised so that they are able to withstand inherent shocks occasioned by liquidity constraints likely to negatively impact financial performance. The findings are expected to shed more light on the critical role played by liquidity requirements as far as financial stability and resilience of the banking sector in Kenya are concerned

Dialogue with standard setters. Amendments to IAS 1 regarding non-current liabilities with covenants

The International Accounting Standards Board (IASB) in January 2020 is-sued "Classification of Liabilities as Current or Non-current", which amended IAS 1 Presentation of Financial Statements. The main purpose of the amend-ments regards the classification of financial liabilities and how to classify them under particular circumstances. The amendments are proposed to be effective for annual reporting periods beginning on or after 1 January 2023, with earlier application permitted. Due to feedback received and enquiries about the classification of financial liabilities with financial covenants, in December 2020 the IFRS Interpretations Committee (IFRIC) published a tentative agenda decision in response to such feedback. Subsequently, in October 2022 the International Accounting Stand-ards Board (IASB) published a document titled "Non-current Liabilities with Covenants (Amendments to IAS 1)". The purpose of this document is to clarify the conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments are ef-fective for reporting periods beginning on or after 1 January 2024. The classification of financial liabilities as current or non-current is an im-portant consideration for financial reporting purposes, as it can have a significant impact on a company's financial statements and financial ratios. Current liabili-ties are those that are expected to be settled within one year, while non-current liabilities are those that are expected to be settled beyond that time frame. The purpose of the following review is to analyse the main impacts of the amendments on the classification of the financial liabilities with covenants and the project's history and timeline.

Exploring the accounting community perspective on the "Consultation Paper on Sustainability Reporting"

The International Accounting Standards Board (IASB) in January 2020 is-sued "Classification of Liabilities as Current or Non-current", which amended IAS 1 Presentation of Financial Statements. The main purpose of the amend-ments regards the classification of financial liabilities and how to classify them under particular circumstances. The amendments are proposed to be effective for annual reporting periods beginning on or after 1 January 2023, with earlier application permitted. Due to feedback received and enquiries about the classification of financial liabilities with financial covenants, in December 2020 the IFRS Interpretations Committee (IFRIC) published a tentative agenda decision in response to such feedback. Subsequently, in October 2022 the International Accounting Stand-ards Board (IASB) published a document titled "Non-current Liabilities with Covenants (Amendments to IAS 1)". The purpose of this document is to clarify the conditions with which an entity must comply within twelve months after the reporting period affect the classification of a liability. The amendments are ef-fective for reporting periods beginning on or after 1 January 2024. The classification of financial liabilities as current or non-current is an im-portant consideration for financial reporting purposes, as it can have a significant impact on a company's financial statements and financial ratios. Current liabili-ties are those that are expected to be settled within one year, while non-current liabilities are those that are expected to be settled beyond that time frame. The purpose of the following review is to analyse the main impacts of the amendments on the classification of the financial liabilities with covenants and the project's history and timeline.

Analisis Laporan Arus Kas (Studi Kasus PT. Bosua Asuransi Cabang Jambi Bulan Oktober-Desember Tahun 2018)

This study aims to determine the condition of cash flow in PT. Bosowa Insurance Jambi Branch. if you look at the analysis of the cash flow statement. Data collection is carried out with literature and documentation research techniques. Research methods. by using descriptive analysis methods using cash flow from operating activities, investments, and funding as well as ratio analysis, namely: Operating Cash Flow Ratio (AKO), Cash Coverage Ratio to Current Debt (CKHL), Capital Expenditure Ratio (PM), Total Debt Ratio (TH). The results of this study show that the company's total cash flow during October-December 2018 shows that the company is in a non-liquid condition when assessed in terms of its operational activities. With the ratio analysis that has been carried out, it can be concluded that there is a decrease in cash flow, especially in operating activities every year and the company's ability to overcome its current liabilities still cannot be resolved.This shows that Bosowa Asuransi Jambi Branch was in a bad position during October-December 2018

Analisis Perputaran Modal Kerja Pada PT. Lippo Karawaci, Tbk

This study aims to determine and analyze the amount of working capital turnover at PT. Lippo Karawaci, Tbk. This type of research is descriptive using secondary data sources. The research instrument used is a list of tables containing sales data, current assets, current liabilities, at PT. Lippo Karawaci, Tbk for 10 years, from 2012 to 2021. The population used in this research is all of the financial statements of PT. Lippo Karawaci, Tbk since being listed on the IDX from 1996 to 2021, namely for 25 years. The sample is 10 years from 2012 to 2021 using a purposive sampling technique. Data collection techniques using documentation and literature study. The data analysis technique uses a one-sample t-test. The results showed that the working capital turnover at PT. Lippo Karawaci, Tbk more than 6 times than expected or good.

The Impact of Working Capital Management on Profitability: Evidence from Non-Financial Firms Listed in NEPSE

Efficient working capital management (WCM) is expected to contribute positively to the firm's profitability. With the aim of analyzing the impact of WCM on the profitability of non-financial firms listed in NEPSE, this paper has used current ratio (CR), debt ratio (TDTA), current assets to total assets (CATA), current liabilities to total assets ratio (CLCA) and inventory conversion period (ICP), receivable conversion period (RCP), payable deferral period (PDP), and cash conversion cycle (CCC) as the measures of WCM. This paper has used annual panel data of 12 non-financial NEPSE-listed firms from 2005/06 to 2019/20. Based on the result of the Breusch and Pagan Lagrangian multiplier and Hausman tests, the study found the Random Effect model as the appropriate regression model. Using the Random Effect regression model, this paper has found the significant impact of WCM on profitability. Likewise, this paper found a significant negative impact of the current ratio (CR) and debt ratio (TDTA) and a significant positive impact of the ratio of current assets to total assets (CATA) on profitability. Further, the finding also reveals that there is an insignificant negative impact of the inventory conversion period (ICP) and receivable conversion period (RCP) and an insignificant positive impact of the payables deferral period (PDP). Thus, this paper concludes that Nepalese non-financial firm can increase their profitability by decreasing the current ratio (CR) and debt ratio (TDTA) and increasing the ratio of current assets to total assets (CATA).

Determinants of the Corporate Financing Structure in the Energy and Mining Sectors; A Comparative Analysis Based on the Example of Selected EU Countries for 2012–2020

The main aim of the paper is to examine the interdependence of corporate financing structure on selected determinants in the energy and mining sectors of the economy. In addition, a comparison of the results between these economic sectors is made. In order to increase the representativeness of the sample, countries from both the “old” European Union (Germany, France, Great Britain, Spain, Italy, and Sweden) and newly admitted countries (Poland, the Czech Republic, Hungary, Romania, Slovakia, and Bulgaria) were included in the study. The research used data from the Orbis database for 2012–2020. A one-factor linear panel model was used to verify the hypotheses. The research partly confirmed the hypotheses. A negative relationship between the financing structure and profitability in both analysed sections was clearly established. The second determinant whose influence on the financing structure in both sections was found to be unambiguous was the ratio of current liabilities to current assets. However, this influence was positive. Another determinant whose influence on the financing structure was confirmed to be unequivocal and positive in nature was the size of the company. This occurred only in the energy sector. The research revealed that other determinants, such as asset structure, interest, and noninterest tax shields, also affect the financing structure of companies, but the statistical significance of these relationships is ambiguous.

Insolvency Forecasting using model Altman Z-Score dan Springate Score Analysis

This study aims to determine the level of company bankruptcy by using the Altman Z-Score and Springate Score model analysis on coal mining companies listed on the Indonesia Stock Exchange because Coal Mining Companies have many roles in the Indonesian Economy. The data used in this study is the annual financial report found in the Indonesian Capital Market Directory. The analysis technique used is a discriminant analysis using variables from the Altman Z-Score, which totals four financial ratios, namely Working Capital to Total Assets, Retained Assets to Total Assets, Earning Before Interest and Tax to Total Assets and Total Equity to Total Liabilities. This study also uses variables from the Springate Score: four financial ratios, namely Working Capital to Total Assets, Earning Before Interest and Tax to Total Assets Earning Before Tax to Current Liabilities Sales to Total Assets. The study results show that the financial statements of coal mining companies listed on the Indonesia Stock Exchange can be used to predict and save the company from possible bankruptcy with the Altman discriminant model and the Springate Score.