Company Liquidity Research Articles

A STUDY ON RECEIVABLE MANAGEMENT AT INDIAN TOBACCO DIVISION MEENAKUTTE VILLAGE JALA HOBALI

This research explores the field of receivable management with the goal of offering a thorough examination of the numerous practices and techniques used by organizations to maximize productivity and improve financial performance. A company's liquidity and profitability are substantially impacted by receivables, a crucial part of working capital. This research analyses the complex link between receivable management practices and their related consequences on cash flow, operational expenses, and overall financial health by looking at a varied variety of sectors and firm sizes. Keywords: Accounts payable management, working capital, financial performance, cash flow, efficiency, credit policies, collection strategies, profitability, trade credit, , credit risk, debtor turnover, financial ratios, and receivables turnover.

LIQUIDITY AND PROFITABILITY ANALYSIS OF THE SELECTED AUTOMOBILE COMPANIES OF INDIA

Liquidity and profitability ratios are very vital indicators of the company’s performance for the short- and long-term view. Continuing profit help for the future growth of the company and liquidity proves the smooth running of the business on a short-term basis. In this study selected Automobile companies of India are used for the analysis. The purpose of the study is to find out the liquidity and profitability performance of companies. And to check relationship between liquidity and profitability of selected companies. For the purpose of the study three companies are selected from the Automobile sector which are Maruti Suzuki India Ltd., Tata Motors and Mahindra and Mahindra Ltd. The data is collected from annual report of selected companies. The study period is for 10 years. From 2013-14 to 2022-23. For the analysis two statistical techniques arithmetic mean and regression analysis are used. From the analysis it has been observed that in liquidity ratio, Mahindra and Mahindra Ltd. Performed better than Maruti Suzuki India Ltd and Tata Motors Ltd. while in profitability ratio Maruti Suzuki India Ltd. Performed better than Mahindra and Mahindra Ltd and Tata Motors Ltd. The study concludes that there is no statistically significant relationship between the liquidity ratio and profitability ratio.

A COMPARATIVE STUDY ON FINANCIAL ANALYSIS OF RAMCOIND & HIL

Cement industry is very important industry in India because it is contributing in India's infrastructural and industrial development. Cement industry is contributing almost 1.2% of GDP and 0.5 million employment. So this study entitled “A comparative study on financial analysis of RAMCOIND & HIL” is done to know about the financial condition, profitability, solvency, liquidity and working capital efficiency of these cement companies. From this study, it was found that working capital growth of both company is satisfactory but working capital turnover ratio of HIL is not good. Liquidity of both companies is not good. Profitability of HIL is better than RAMCOIND but solvency of HIL is not good.

ANALISIS KINERJA KEUANGAN PERUSAHAAN OTOMOTIF YANG LISTING DI BURSA EFEK INDONESIA (PADA 2011-2020)

The purpose of this study was to determine how big the level of profitability, solvency, liquidity, and activity ratios of automotive companies listed on the Indonesia Stock Exchange. Based on the analysis and discussion that has been carried out at PT Astra Internasional, Tbk and PT. Astra Otoparts, Tbk. So it can be concluded that PT Astra Internasional, Tbk and PT. Astra Otoparts, Tbk is a company that is included in the category of a healthy and good company because it is seen from the industry standards of its financial ratios, because it is almost able to reach the limits of its industry standards. even though the company is still able to cover the losses that occur even with a ratio of 1:1.

Faktor – Faktor Yang Mempengaruhi Kualitas Laba Pada Perusahaan Manufaktur Di Bursa Efek Indonesia Pada Tahun 2019 - 2021

This study aims to empirically examine the factors that influence the quality of earnings in manufacturing companies on the Indonesia Stock Exchange (IDX) in 2019 – 2021. Earnings Response Coefficient (ERC) is measured. The factors studied are leverage, profitability, and liquidity in industrial manufacturing companies listed on the IDX in 2019 – 2021. There were 51 companies taken, company data that could be processed were 30 companies for 3 periods, namely 90 samples. The sampling method uses purposive sampling, while the testing technique used is linear regression analysis and uses the SPSS program. The test results show that the leverage variable has a significant negative effect on earnings quality. Then the profitability variable has a positive effect on earnings quality. Meanwhile, the liquidity variable has no significant negative effect on earnings quality.

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.

An Exploratory Study on Compulsory Liquidation of a Company and its Liability

This research paper delves into the intricacies of company liquidation, focusing on the winding-up process as an essential legal mechanism to terminate a corporation's existence. The study addresses the objectives of understanding the causes of liquidation, the liabilities of companies during liquidation, and the powers of courts and tribunals in the process. The research scope primarily centers on India's legal framework, encompassing the Companies Act of 2013 and the Insolvency and Bankruptcy Code of 2016. The paper finds that while insolvency is often perceived as the primary reason for liquidation, other factors contribute to the decision. Compulsory winding-up procedures are aimed at permanently closing businesses that are no longer viable, relieving directors of unmanageable debts, and preventing improper trade practices. The research highlights the roles of different adjudicating authorities and examines the differences between voluntary and compulsory winding-up modes. The study draws from existing literature and empirical research to substantiate its findings. The authors compare provisions under the Companies Act and the Insolvency and Bankruptcy Code to showcase the evolution of winding-up regulations. They emphasize the importance of efficient liquidation procedures to address India's bad debt issues. In conclusion, the paper underscores that while insolvency is a significant factor, other circumstances lead to company liquidation. The legal reforms introduced by the Insolvency and Bankruptcy Code have streamlined and expedited the winding-up process, ultimately aiming to facilitate the resolution of bad debts and improve the overall economic landscape. The authors suggest more prudent enforcement of penalties, the preference for voluntary winding-up when suitable, and continued emphasis on the efficiency of the new legal framework.

Substantiating the normative values of company's liquidity ratios: Evidence from the engineering, transport and logistics industries

Subject. The article addresses the normative values of financial indicators of the liquidity group that are formed as a result of financial and economic relations of the enterprise. Objectives. The aim is to calculate the normative values of financial indicators of the liquidity group for engineering, transport and logistics companies, using the hierarchical cluster analysis tool. Methods. The study draws on general scientific research methods. Results. We offered an algorithm to calculate the normative values of financial indicators, using the hierarchical cluster analysis; calculated the normative values of the quick liquidity ratio, current liquidity ratio, and absolute liquidity ratio for the branches of mechanical engineering, transport and logistics. Conclusions. The calculated financial indicators are applicable for the analysis of financial and economic activities of mechanical engineering, transport and logistics enterprises. The proposed algorithm based on the method of hierarchical cluster analysis can be used to calculate other financial indicators of enterprises operating in various industries.

Effect of accounting disclosure on returns of shares in the algerian stock exchange : application of var model

This paper aims to investigate the relationship between annual document disclosure and the stock liquidity for companies listed on the Algeria stock market. VAR model was used to examine the impact of the market efficiency on the stock prices of the companies from 2000 to 2015. The findings indicate that there was no significant effect related to the timing of publication of financial information over a period of study on stock returns in the days around the publication days of annual financial statements; Accounting disclosure also affects, directly or indirectly, the decisions of investors, as well as activating the stock market and increasing the movement of trading and stock prices with it The effect of disclosure becomes clear when the information is published late or inaccurate or excellent in its presentation and its failure to rely on agreed accounting principles and standards, or result in a negative impact on the behavior of the investor, This affects the degree of risk that he is willing to bear according to his circumstances. The timing of the financial information release depends on the basic environment in which Algerian institutions operate.

The Effect of Working Capital Management and Family Ownership on Profitability and Liquidity (Study of Family Companies Listed on the Indonesia Stock Exchange in 2018-2022)

This article aims to examine the impact of working capital management and family ownership on the profitability and liquidity of family-owned companies listed on the Indonesia Stock Exchange from 2018 to 2022. The research utilizes a quantitative approach by analyzing financial data about working capital, family ownership, profitability, and company liquidity. The data used in the study is obtained from publicly available financial reports of family-owned companies listed on the Indonesia Stock Exchange. Data collection is conducted through a thorough review of documentation. The research sample consists of active family-owned companies that possess complete data for analysis. Multiple linear regression is employed to assess the relationship between working capital management, family ownership, profitability, and company liquidity. The findings reveal that both working capital management and family ownership significantly influence the profitability and liquidity of family firms. These findings offer valuable insights for family firm management to enhance their financial performance. Effective management of working capital can contribute to improved profitability and liquidity, while family ownership also plays a crucial role in determining the financial performance of family-owned companies. Furthermore, in addition to its practical implications, this research contributes theoretically to the existing literature on working capital management and family ownership, specifically in the context of family-owned companies in Indonesia.

The Effect of Debt To Equity Ratio, Current Ratio, Return On Equity on the Company's Share Price PT.Indofood Sukses Makmur Tbk

Stock prices in the capital market fluctuate which also causes ups and downs of investor interest to invest in the company. These rates vary from time to time depending on the performance of the Company. Stock prices rise when there is excess demand. However, stock prices also fall when there is excess demand. Therefore, the performance of a company affects the high share price of the company PT.Indofood Sukses Makmur Tbk. The solvency ratio is a ratio that measures how much a company's assets are financed by debt. Part of the solvency ratio included in research material is the ratio of debt to equity. The debt to equity ratio shows how much the equity to debt ratio is used to capitalize the company's assets. The liquidity ratio is an asset that is used in a market that functions in such a way that, the result can be quickly converted into money at the current market price. The higher the current ratio, the better the company's liquidity. The profitability ratio is seen as the influence of the company's stock price as a percentage of return on equity (ROE). ROE measures the return received by company owners (shareholders) from any capital paid to the company in the form of dividends. The research data used is in the form of secondary data in the form of the financial statements of the company PT.Indofood Sukses Makmur Tbk which have been published on the Indonesia Stock Exchange for the period 2015-2019. The sample for this study was 5 financial statements of the company PT.Indofood Sukses Makmur Tbk using a sample determination technique, namely total sampling. The data analysis technique used analysis with the help of the SPSS 25 program. The results showed that the DER variable had a negative and insignificant effect on stock prices, the CR variable had a negative and insignificant effect on stock prices. And the ROE variable had a positive and significant effect on stock prices. the company's share price PT.Indofood Sukses Makmur Tbk.

Trade credit supply and financial distress outcomes: evidence from Australian voluntary administrations

PurposeThe objective of this study is to investigate the relationship between trade credit supply and financial distress outcomes, considering the role that trade credit plays as a substantial source of liquidity for distressed companies. Specifically, it examines whether there is an association between trade credit supply and the outcomes experienced by companies that undergo the voluntary administration (VA) insolvency procedure under Australian corporate law.Design/methodology/approachThe study examines a sample of companies that were listed on the Australian Securities Exchange and entered VA between 2002 and 2019. Ordered logistic regression is used to determine the relation between trade credit and VA outcomes. The VA outcomes considered are as follows: (1) company liquidation, (2) orderly dissolution through an agreement with creditors, or (3) an agreement with creditors for reorganization of all or part of the company's business.FindingsThe findings show that trade creditors' willingness to supply credit is influenced by their rational expectations about the future prospects of financially distressed customers. Higher levels of trade credit and an increase in trade credit supply prior to VA are associated with a greater probability of achieving a reorganization versus a liquidation or dissolution outcome.Originality/valueThere is no apparent prior study investigating the connection between trade credit supply and outcomes for distressed companies entering insolvency administration. Therefore, this study provides novel evidence on the role of trade credit in the context of financial distress. Understanding the relationship between trade credit supply and outcomes is particularly significant considering that many jurisdictions offer distressed companies the opportunity to pursue reorganization under their insolvency laws. Examining financial distress and trade credit in the Australian creditor-friendly context expands on existing research. Prior research has predominantly relied on data from the United States, which has debtor-friendly bankruptcy law. Consequently, these studies may lack generalizability to jurisdictions with creditor-friendly law such as Australia.

Liquidity and Profitability of Retail Companies: Evidence from Indonesia

This study aims to examine effect of liquidity on profitability of publicly listed retail companies on the Indonesian Stock Exchange (IDX). This study uses firm size and Working Capital Management (WCM) efficiency as control variables. The sample in this study consisted of 15 publicly listed retail companies in the period of 2014-2019. All variables are measured by a ratio scale. Profitability is proxied by return on assets. Data was analyzed with panel data regression using a fixed effect model. This study shows that liquidity has a positive and significant effect on profitability when measured using the current ratio. In addition, company size has a significant positive effect on profitability. A higher composition of current assets to current liability improves profitability. On the other hand, Cash Conversion Cycle (CCC) as a proxy of WCM efficiency has a significant negative correlation with profitability. This research findings contribute to understanding of the impact of liquidity, firm size and CCC on profitability in retail industry.

Does the Debt Ratio Mediate the Effect of Liquidity Ratio and Profitability Ratio on Stock Returns?: Empirical Evidence on Wholesale and Retail Trade Sub-Sector Companies on the Indonesia Stock Exchange

This study aims to analyze the mediating effect of the debt ratio on the effect of liquidity and profitability on stock returns. Stock prices and returns are one unit, so that to estimate stock prices and returns can be seen from the company's financial performance, through financial ratios such as liquidity ratios, profitability ratios, and debt or leverage ratios. Companies with good financial performance are expected to have good stock performance. This study used a sample of 31 public companies in the wholesale and retail trade sub-sector which were listed on the Indonesia Stock Exchange in the 2016-2020 period. Sampling of this research was based on purposive sampling technique. The data analysis technique used is tiered linear regression, path analysis, and the Sobel test. The results of this study indicate that the significant liquidity ratio has a negative effect on the debt ratio and the liquidity ratio does not have a significant negative effect on stock returns. The profitability ratio has a significant positive effect on the debt ratio which confirms the trade-off theory. The profitability ratio has a significant positive effect on stock returns, while the debt ratio has a significant negative effect on stock returns. The debt ratio is not significant to mediate the positive negative effect of the liquidity ratio on stock returns. Likewise, the debt ratio is not significant mediating the negative positive effect of profitability ratios on stock returns. The results of this study suggest that investors who expect high stock returns do not need to pay attention to the company's debt ratio, but rather pay attention to the company's liquidity and profitability.

Analysis of the liquidity, solvency and profitability of the mining companies listed on the S&P/BVL Mining Index during the 2004–2020 period.

In several countries, mining contributes more than most sectors to economic growth. But the activity is marked by cyclical behaviour, including booms in the price of metals—such as that which occurred in the period 2004-2012. Therefore, it is important for investors to identify the financial performance of companies in the sector. This study aims to analyse the levels of liquidity, solvency, and profitability of Peruvian mining companies listed on the S&P/BVL Mining Index for the period 2004–2020, given the contribution of mining to GDP growth and employment in Peru. We utilise a quantitative approach, collecting data from the companies’ financial statements through Bloomberg. The research design is non-experimental, based on a descriptive, comparative, and longitudinal approach. For the statistical analysis, descriptive statistics tests and Student’s t-test were carried out. Analysis of the results reveal that the liquidity, solvency, and profitability of this group of companies exhibited a better performance during the metal-price boom period, with a marked decrease in the following period.

Kinerja keuangan sebelum dan selama pandemi Covid-19 perusahan subsektor Telekomunikasi

The spread of the Covid-19 pandemic had an impact on all community activities from the educational, health, and economic aspects. Restrictions on activities imposed by the governments of various countries have reduced the volume of sales and production of business companies which had an impact on the company's financial performance. The purpose of the research is to analyze how significant the difference is in the financial performance of telecommunications sub-sector companies listed on the Indonesia Stock Exchange between before and during the covid-19 pandemic. This study uses the telecommunications subsector because, during the covid-19 pandemic, the industry has been considered to have a positive impact, but not all of them experienced positive financial growth. The measured financial performance includes profitability, liquidity, and solvency. The population consists of all telecommunications sector companies listed on the Indonesia Stock Exchange. The number of samples in this study is 19 telecommunications sub-sector companies consecutively for the 2018-2021 with saturated sampling technique. This type of research is is a descriptive quantitative study using a paired sample t-test. The findings show that the company's profitability and solvency before and during the Covid-19 pandemic experienced significant decrease. However, the company's liquidity did not change significantly during that time

Pengaruh Leverage dan Likuiditas terhadap Nilai Perusahaan dengan Pemoderasi Umur Perusahaan

This study aims to explore how leverage and liquidity affect the value of companies listed on the Indonesia Stock Exchange from 2018 to 2022. Firm age is also considered a moderating variable in the analysis, using a sample of 15 companies using SPSS 23.0 for quantitative data analysis. Secondary data were used which were obtained from annual reports taken from the respective company websites and the website of the Indonesia Stock Exchange (IDX). The research population consists of banking companies listed on the IDX in the 2018-2022 period. The results of the study found that leverage has a significant negative effect on firm value, while the liquidity ratio has no significant effect. In addition, firm age was found to moderate the relationship between leverage and firm value, but not the relationship between liquidity and firm value. The analysis shows that the combined leverage ratio and liquidity account for 81.9% of the variance in firm value, with the remaining 18.1% being influenced by other variables not included in the study. It can be concluded that leverage has a significant negative effect on firm value, while liquidity has no impact on firm value. In addition, firm age can moderate the relationship between leverage and firm value, but not moderate the relationship between liquidity and firm value in companies listed on the Indonesia Stock Exchange. This study provides valuable insights, emphasizing the importance of firm age as a moderating variable in the relationship between leverage and firm value.

MEASURING THE FINANCIAL PERFORMANCE OF BHARAT SANCHAR NIGAM LTD. IN BHOPAL USING RATIO ANALYSIS

This study use ratio analysis to evaluate Bharat Sanchar Nigam Ltd.'s (BSNL) financial standing in Bhopal. Financial health was assessed by looking at liquidity, profitability, and solvency measures for 2018, 2019, and 2020. The ratio research showed that BSNL has serious money problems since the company's liquidity, profitability, and solvency ratios are all poor. A fall in the company's current ratio and quick ratio over time indicates that meeting short-term commitments may be difficult for BSNL. The company has been losing money and failing to generate positive returns for its investors since its net profit margin ratio, return on assets ratio, and return on equity ratio are all below zero. The increasing debt-to-equity ratio, debt-to-total-assets ratio, and interest coverage ratio all indicate that the company is more dependent on debt financing rather than equity funding. This indicates that the corporation may have trouble generating enough revenue to meet its interest expenditures. Based on the results of this study, BSNL should make certain strategic adjustments to boost its bottom line. The recommended measures, such as better working capital management, debt reduction, revenue growth, and customer service improvement, may aid the firm in overcoming its financial difficulties. BSNL's overall financial health is in a vulnerable state, and the corporation has to take immediate measures to strengthen its bottom line.

Aspects of ensuring the rights of shareholders in the process of activities of joint-stock companies

The article is devoted to the study of certain aspects of ensuring the rights of shareholders in the process of conducting contractual work by a joint-stock company. The article emphasizes that a joint-stock company can enter into various contracts to ensure the conduct of its business activities. Depending on the subject and price of the contract, as well as taking into account the conditions of concluding the contract, the legislator separately defines contracts that can be qualified as significant contracts and contracts with interest. The conclusion of the specified contracts by a joint-stock company, taking into account the essence of the concept of corporate rights, can directly affect the conditions for shareholders to exercise the right to receive dividends and/or part of the company's property in proportion to their share in the authorized capital during the liquidation of the joint-stock company. Therefore, it is an important issue to ensure the rights of shareholders in the process of concluding significant contracts and contracts with interests by joint-stock companies. The article analyzes the current legislation of Ukraine on the issue of contracts by joint-stock companies. It is noted that the norms of the new Law of Ukraine "On Joint Stock Companies", which entered into force on January 1, 2023, provide for a slightly new approach to the essence of the concepts of a significant contract and a contract with an interest and the procedure for their conclusion.
 The article emphasizes that depending on such essential conditions as the subject of the contract and its price, some of the contracts should be classified as significant. As for the contract with an interest, the determining factor for such qualification is the person of the counterparty of such a company, which can be, for example, an official of the joint-stock company itself or another person who is related to an official of the company. Therefore, the provisions of the current legislation of Ukraine define the procedure for agreeing to conclude such contracts in order to prevent negative consequences that may occur when the joint-stock company fulfills its obligations under the specified contracts.
 The conclusions emphasize the need for further improvement of the mechanism of application of the current legislation of Ukraine in practice to ensure reliable security of the joint-stock company and protection of shareholders' rights.

Determinants of Firm Competitiveness: Econometric Evidence from the Bulgarian Industry

The factor effects of profitability at company and sectoral levels have earned a special status in research literature as a general measure of competitiveness. The Covid-19 crisis resulted in restrictions in consumption, rising levels of company debt, and increased concerns about company liquidity, which has led to revenue risks for industrial production firms. This study attempts to examine several factor effects that have impacted the financial performance, respectively the competitiveness of Bulgarian enterprises.