Quick Ratio Research Articles

Faktor-Faktor Yang Mempengaruhi Profitabilitas Pada Perusahaan Sektor Usaha Industri Barang Konsumsi Yang Terdaftar Di Bursa Efek Indonesia

Business profit is the main goal of establishing a company by a group of individuals who run their business. Every year, the owner will set a profit target to be achieved so that management as directors try to optimize all assets owned by the company, both short-term and long-term assets. To achieve profit goals from business activities, the company will try to maintain short-term ratio stability, fast payments, inventory turnover, receivables turnover, DER system and working capital turnover so that every year the company operates well and stably and is relatively stable in the business as it runs. The aim of this research is to analyze the effect of the current ratio, quick ratio, inventory turnover, accounts receivable turnover, DER and partial working capital turnover as well as on the profitability of consumer goods industrial companies listed on the IDX. The basic group includes no less than 73 companies in the consumer goods industry, the sampling method is purposive sampling so that sample includes 37 companies and no less than 111 observations were made. Data analysis techniques are multiple linear regression, classical assumption testing and hypothesis testing. The research results show that the current ratio, debt ratio, inventory turnover, accounts receivable turnover, and DER ratio partially have a positive and significant effect on the profitability (ROA) of consumer goods companies listed on the IDX, while working capital circulation has no significant effect on the company’s profitability. Meanwhile, the current ratio, quick ratio, inventory turnover, receivables turnover, DER ratio and working capital turnover have a significant effect on the ROA of consumer goods companies on the IDX.There is a strong correlation between a company’s current metrics, short-term metrics, inventory turnover, receivables turnover, DER, working capital turnover and ROA. ROA can be explained by the Current ratio, Quick Ratio, Inventory Turnover, Receivables Turnover, DER and Working Capital Turnover. 55,5% the remaining 44.5% can be explained by other variables that have not been tested. 
 Keywords: Current ratio, Quick Ratio, Inventory Turnover, Receivables Turnover, DER, Working Capital Turnover, ROA

Analisis Rasio Profitabilitas dan Likuiditas untuk Menilai Kinerja Keuangan pada PT. Bukaka Teknik Utama Tbk Tahun 2018-2022

This study aims to analyze the financial performance of PT. Bukaka Teknik Utama Tbk, with a focus on profitability and liquidity ratios during the period 2018-2022. The method used is descriptive with a quantitative approach. This research aims to assess the company's ability to generate profits, meet short-term obligations, and improve its liquidity. The research findings indicate an improvement in profitability over the years, with an average net profit margin of 10.72%. However, operational efficiency remains a concern with an average gross profit margin of 16.95%. While PT. Bukaka Teknik Utama Tbk achieves an average return on assets (ROA) of 9.51%, the average return on equity (ROE) is 17.82%. Additionally, liquidity ratios, including the current ratio, quick ratio, and cash ratio, need to be evaluated to gain a better understanding of the company's financial condition. This study aims to provide deeper insights into the company's financial performance and recommend appropriate improvement measures.
 Keywords: Profitability, Liquidity, Financial Performance

Looking at Financial Performance, Analysis of its Effect on Share Prices

This study aims to determine and analyze the effect of financial performance on stock prices in pharmaceutical sub-sector companies on the Indonesia Stock Exchange for the period 2014 – 2023. This study uses financial performance as an independent variable with indicators of Current Ratio (CR), Quick Ratio (QR), Cash Ratio (CashR), Debt to Asset Ratio (DAR), Debt to Equity Ratio (DER), Fixed Asset Turn Over (FATO), Inventory Turn Over (ITO), Total Asset Turn Over (TATO), Gross Profit Margin (GPM), Net Profit Margin (NPM) and Return On Equity (ROE). Stock price as a variable is tied to the stock price indicator (HS). Data and facts obtained from the issuer's financial statements, stock prices and financial performance have considerable and significant differences in the study period. The analysis tool uses the Smart Partial Least Square (PLS) 3.0 software program. The results showed that financial performance variables with FATO and TATO indicators affect stock price variables, while other financial performance indicators, namely CR, CashR, DAR, DER, GPM, ITO, GPM, ITO, NPM, QR and ROE are not able to construct financial performance variables.

Analisis Kinerja Keuangan PT Tembaga Mulia Semanan Tbk. Periode 2019-2022

One of the main indicators related to the business continuity (going concern) of a company is the company's financial performance. The trust of interested parties such as shareholders, managers and creditors will increase if the company's financial performance is of good quality. This research aims to assess the financial performance of PT Tembaga Mulia Semanan Tbk. 2019-2022, namely calculating liquidity ratios (current ratio and quick ratio), solvency ratios (debt to asset ratio and debt to equity ratio), profitability ratios (return on investment and return on equity), and activity ratios (inventory turnover and fixed asset turnover) for the 2019-2022 period. This research applies a descriptive quantitative analysis method using secondary data, namely audited financial reports in the form of profit and loss statements and financial position reports as well as books related to financial report analysis. Financial reports are taken from published data from the Indonesian Stock Exchange and PT Tembaga Mulia Semanan Tbk. The results of the research are PT Tembaga Mulia Semanan Tbk. describes poor financial performance in 2019-2022 which is characterized by the current ratio and quick ratio, debt to asset ratio and debt to equity ratio, ROI and ROE, which are below industry standards as well as fixed asset turnover and inventory turnover with values ​​above industry standards.

Financial Ratio Analysis of PT Bank Negara Indonesia (Persero) Tbk Year 2018-2022

The aim of this research is to determine the liquidity, solvency and profitability ratios at PT Bank Negara Indonesia (Persero) Tbk for the 2018-2022 period. This research uses quantitative methods with a descriptive approach. The results of the discussion in this research are that with liquidity ratios consisting of Quick Ratio, Banking Ratio, Loan to Assets Ratio, and Loan to Deposit Ratio, it can be seen that financial conditions change each period, namely the amount of loans given is less than the amount of money saved by customers. Based on an analysis of the solvency ratio at PT Bank Negara Indonesia (Persero) Tbk for the 2018-2022 period, it shows that the primary ratio and capital adequacy ratio tend to increase, making it easier for the bank to manage losses that occur in each period. PT Bank Negara Indonesia (Persero) Tbk's profitability ratio tends to vary due to declines and increases. However, in the 2020 period the level of health tends to be poor based on the ROA and ROE values ??because it has not been able to generate profits from the capital it has. It can be concluded that from all the liquidity, solvency and profitability ratio analyzes that have been carried out, it can be seen that the financial performance of PT Bank Negara Indonesia (Persero) Tbk for the 2018-2022 period has increased quite significantly.

Financial Ratio Analysis of PT Bank Central Asia Tbk Period 2019 – 2022

The banking sector is a vital sector for the development of a country. To find out the company's performance, an analysis of the company's financial reports can be carried out, and the increases and decreases that occur can be used as an analysis for the company's future. The research results on the financial statements of PT Bank Central Asia Tbk for the 2019–2022 period show that total current assets will be higher than total short-term liabilities, so the quick ratio presentation will decrease. From a liquidity perspective, a bank's health is measured by its loan-to-deposit ratio. The solvency ratio shows that the company's results have increased yearly because the level of assets owned by the company is relatively high, and the initial capital tends to be small. This can result in the company's level of capital health being sufficient. The profitability ratio results show that the company gets high ROE and ROA results, so it can be interpreted that the net gain is relatively high.

Effect of Cash Turnover and Quick Ratio on Profitability

The enduring viability of a corporation is intrinsically linked to its primary objective of optimizing financial gains. Attaining this goal is crucial for guaranteeing the company's durability and ongoing prosperity. Within this environment, it is crucial to comprehend the complex interconnection among financial data. This study mainly aims to examine the impact of Cash Turnover and Quick Ratio on Profitability of Multinational Companies Producing Chemicals . from 2019 to 2021.The company's enduring prosperity hinges on efficient financial management, with the primary objective being earnings maximization. To explore this phenomenon in depth, a research method that combines associations and quantitative data is utilized. The data utilized in this investigation are derived from the official website of Multinational Companies Producing Chemicals. and pertains to the period from 2019 to 2021.The research findings provide a detailed comprehension of the interaction between financial variables and Profitability for Multinational Companies Producing Chemicals. Firstly, the study emphasizes Cash Turnover's favorable and substantial impact on Profitability, specifically Return on Assets (ROA). The impact is measured as 46.4%, highlighting the significant contribution that efficient cash turnover makes to improving the company's Profitability. This condition highlights the significance of efficiently managing cash flows to maximize financial performance.Moreover, the study reveals that the Quick Ratio has a substantial and beneficial effect on Profitability (ROA) with a magnitude of 19.3%. The Quick Ratio, a metric that assesses a company's capacity to meet its short-term obligations using its most readily available assets, is significant in determining Profitability. This observation implies that upholding a favorable proportion of liquid assets to immediate liabilities benefits the company's overall Profitability.Moreover, the study examines the collective influence of Cash Turnover and Quick Ratio on Profitability (ROA). The combined impact of these characteristics was determined to be both favorable and statistically significant, totaling 65.8%. This condition highlights the need to consider many financial indicators together to achieve improved Profitability.

Impact of Financial Variables on Profitability Performance of Selected Tea Companies in West Bengal

Profit earning ability is called the profitability. It is the power of business for proper planning; controlling, optimum utilisation of available resources, proper management and profit planning capacity, follow-up all sections and make changes if needed. It is an indicator of how efficiently a business is operating, managed and policy has been taken. If a business is run efficiently and effectively then the earning capacity of the business is also more. It is the power how efficiently a business run and managed. Profitability of tea companies in West Bengal depends on so many factors. Financial performance is the indicator of firm’s working capital management and profitability management which helps us to identify the financial strength and weakness of the firms. We have taken nineteen variables of financial factors such as current ratio (CR), quick ratio (QR), cash position ratio (CPR), net working capital cycle (NWCC), short term debt equity ratio (STDER), interest coverage ratio (ICR), stock turnover ratio (STR), debtors turnover ratio (DTR), creditors turnover ratio (CTR), return on total income (ROTI), cash profit to total income (CPTI), return on capital employed (ROCE), return on assets (ROA), return on sales (ROS), total income total assets (TITA), return on net worth (RONW), cash profit to net worth (CPNW), total income to net worth (TINW), working capital to net worth (WCNW) out of which five are profitability indicators. The present study aims to identify the impact of financial variables on profitability of leading tea companies in West Bengal. The study covers nine leading tea companies in West Bengal based on market capitalisation. The study has been undertaken for the period of twelve years from 2011- 12 to 2022-23. The necessary data have been obtained from CMIE prowess database. In order to analyse International Journal of Scientific Research in Engineering and Management (IJSREM) Volume: 08 Issue: 01 | January - 2024 SJIF Rating: 8.176 ISSN: 2582-3930 © 2024, IJSREM | www.ijsrem.com DOI: 10.55041/IJSREM28421 | Page 2 impact of financial variables on profitability nineteen variables have been used. Correlation coefficient analysis, linear multiple regression analysis and t-test has been used to test the relationship between the profitability and financial performance indicators. The multiple analyses represents that the entire five models are perfectly fitted and all dependent variable highly responded by the independent variables. The study will help the investors, the researchers and the management to identify the nature of tea companies in West Bengal and will also help to take decision regarding investment in tea companies in West Bengal. Key words: Financial performance, tea companies in West Bengal, descriptive statistics, t-test, multiple regressions, and performance indicators.

IMPLICATION OF LIQUIDITY RATIO ON EFFECTIVE TAX RATE WITH GROWTH TAX RATE AS AN INTERVENING VARIABLE

The worldwide economy was halted by COVID-19, which had an enormous influence on the property and real estate industries. Due to those circumstances, many property and real estate organizations were unable to pay all of their maturing debts on time because they lacked the present assets to meet their commitments. Thirteen hypotheses are included in this quantitative-associative research. The growth tax rate is positively impacted by the quick ratio. Both the quick ratio and the growth tax rate have a positive impact on the effective tax rate. However, the growth tax rate is not impacted by the current, cash and cash turnover ratio. The ratios of current, cash, and cash turnover have impact on the effective tax rate. While the growth tax rate has an impact on the effective tax rate through the quick and cash turnover ratio, The current and cash ratios, however, have no bearing

Analisis Laporan Keuangan Untuk Mengukur Kinerja Keuangan Pt. Kimia Farma pada Bursa Efek Indonesia

This research aims to see how the financial performance of PT. Kimia Farma uses liquidity and profitability ratio analysis for the 2017-2021 period, and whether PT. Kimia Farma is experiencing potential bankruptcy based on the Altman Z-Score model for the 2017-2021 period. This research uses quantitative descriptive methods. The type of data used by researchers is quantitative data and qualitative data obtained from www.idx.id. Data collection takes the form of literature study and documentation. Bankruptcy prediction calculations use the Altman Z-Score Model and profitability ratios ROA, ROE, and Net Profit Margin. The research results show that the Liquidity Ratio value of PT. Kimia Farm Ajika is measured by the Current Ratio which is in accordance with industry standards, however the company's quick ratio is still below the industry standard value. Profitability value of PT. Kimia Farma is still below industry standards due to the company's lack of minimizing costs which causes the company's profits to decrease. In calculating bankruptcy using the Altman Z-Score method, the company can be said to be good because it is still above the standard value. There are recommendations that can be used as input for PT. Kimia Farma, Tbk must further increase working capital in order to create and increase profits which will have an impact on the increase in shares and must minimize the company's operational costs.

Analisis Perbandingan Rasio Keuangan Sektor Besi Baja 2019-2021

Indonesia's economy relies heavily on the steel industry, making it an important sector. This study was conducted with the aim of understanding the comparison of financial ratios. iron and steel sector in Indonesia in 2019 to 2021. This study utilizes secondary information derived from the annual financial statements of steel industry companies in Indonesia. The findings indicate an overall improvement in the financial performance of the steel sector in Indonesia in 2021 compared to 2019, as evidenced by an increase in most financial ratios. Therefore, the study concluded that the financial performance of the steel sector in Indonesia experienced positive growth in 2021. However, certain financial ratios, such as current ratio and quick ratio, still require careful attention.

Research on the Optimization of Enterprise Resource Economic Benefits and Management Costs in Cloud Computing Environment

Abstract Based on cloud computing technology, this paper constructs a benefit-optimal enterprise resource scheduling model and an enterprise cost management prediction model to maximize the economic benefits of enterprise resources and optimize the management costs, respectively. Combining the improved greedy algorithm and the benefit function, a cloud resource scheduling algorithm based on benefit optimization is proposed, defining the benefit function about time and cost, and taking the highest user satisfaction as the optimal resource scheduling objective. A mathematical model for management cost prediction is constructed by using the fireworks algorithm to optimize the number of trees and the number of leaf nodes in the random forest, and the Informatica software is used to manage and integrate the enterprise source data. The performance of the company’s operating conditions after optimizing resource management and cost savings is explored as a case study of Company S. In 2023, the total asset turnover ratio of Company S increased to 21.45 from 0.48 in 2022, and the overall asset operating efficiency improved. Working capital rose to 262,852,200 yuan. The current ratio, quick ratio, and cash ratio improved, while the gearing ratio, equity ratio, and equity multiplier showed a downward trend. The net operating margin achieved the maximum profitability in the last three years, net total assets margin, and net equity margin, with an increase of 25.42%, 20.65%, and 31.49%, respectively.

Construction of fuzzy mathematical model for judging financial indexes of private enterprises under the perspective of deep learning

Abstract This paper introduces a novel financial evaluation framework combining deep learning, hierarchical analysis, and fuzzy comprehensive evaluation to form the AHP-fuzzy comprehensive model. This model is designed to refine financial analysis by constructing precise evaluation indexes and determining weight values, specifically tailored for the financial management of private enterprises. Through a case study on Enterprise A, focusing on solvency, operational efficiency, and cash flow, we observed significant trends: a decline in the quick ratio from 0.92 in 2017 to 0.49 in 2021, a decrease in the accounts payable turnover ratio from 2.58 in 2017 to 2.01 in 2020, and a concerning downward trend in the cash to current liabilities ratio, culminating in −11.30% in 2020. These findings validate the effectiveness of the AHP-fuzzy comprehensive evaluation model in providing nuanced financial assessments for private enterprises.

A Study On Working Capital Management With Special Reference To Oil India Limited

Administration of Working Capital is aessential chore for every manager in an organization, because it directly affects the liquidity and profitability of an organization. The present study examines the importance of working capital management and its impact on profitability of Oil India Limited. A few important ratios have been measured for prominence the effectiveness of working capital management. Pearson’s simple correlation coefficient has been applied for measuring the degree of relationship between the working capital management and profitability. The results inferred that out of eight ratios relating to working capital management, four ratios, viz., Current Ratio, Current Assets to Total Assets Ratio, Current Assets to Sales Ratio, and Cash Turnover Ratio, registered positive association with the selected profitability ratio (ROI), and the remaining ratios like Debtors Turnover Ratio, Inventory Turnover Ratio, Working Capital Turnover Ratio and Quick Ratio witnessed a negative association with the selected profitability ratio.

In search of a benchmark for the quick ratio: The Polish-German setting

In search of a benchmark for the quick ratio: The Polish-German setting

Moderating effect of board independence on the determinants of financial performance in listed non-financial companies of Colombo Stock Exchange

The overarching objective of every business organization is to maximize stakeholder wealth, but various financial constraints can hinder this goal. This study mainly focuses on examining the moderating effect of board independence on the determinants of the financial performance of listed non-financial companies in the Colombo Stock Exchange. There is a lack of research on the factors that determine financial performance at both the national and international levels. Further, there is a dearth of studies related to the moderating effect of board independence on the determinants of financial performance. The present study applied the quantitative approach. This study investigates the relationship between the Quick ratio, Total Assets turnover ratio, Leverage, and Growth in sales as independent variables and their impact on Financial Performance as the dependent variable. Additionally, the study incorporates board independence as the moderating variable. Financial performance is measured using Return on Assets (ROA). The study's population comprises listed non-financial companies on the Colombo Stock Exchange and data was collected from the top 100 companies with the highest market capitalization during the latest period spanning 2020 to 2022, descriptive statistics, correlation analysis, and regression analysis were used to analyze the data. This study has observed that total asset turnover and growth in sales have a positive and significant relationship with ROA. However, leverage has an insignificant relationship with ROA. The relationship between quick ratio and ROA is moderated by board independence. Further, the relationship between growth in sales and ROA is moderated by board independence on the other hand, the relationship between total asset turnover, leverage, and ROA is not moderated by board independence. The insights gained from this research will contribute to a better understanding of the determinants of financial performance in the context of listed companies on the Colombo Stock Exchange.

Quick Ratio and Financial Performance of Agricultural Firms Listed at the Nairobi Securities Exchange, Kenya

The study was informed by the continuous decline in financial performance of the Agricultural firms listed at the Nairobi Securities Exchange, Kenya. The study emanates from the Doctoral dissertation of the first author in which the co-authors served as supervisors. A census approach was adopted where secondary data from audited annual financial reports of all the six Agricultural firms listed at the Nairobi Securities exchange, Kenya was used, covering the period 2015 to 2022. Descriptive analysis and panel regression analysis were applied. Based on the outcome of the panel regression analysis, the study established that quick ratio has significant effect on financial performance of the Agricultural firms listed at the Nairobi Securities Exchange, Kenya. The study established that quick ratio has significant effect on financial performance of the Agricultural firms listed at the Nairobi Securities Exchange, Kenya. The study further recommends that holding of quick assets should be done with caution by firms. Holding of quick assets should be done in view of underlying short-term liabilities since excessive levels lead to declining financial performance. Keywords: Quick Ratio, Financial Performance, Trade-Off Theory and Dividend Signaling Theory

The Influence of Quick Ratio, Return on Asset, Debt to Equity Ratio, and Total Asset Turnover on Company Value

This study aims to determine the effect of Quick Ratio, Return On Assets, Debt to Equity Ratio, and Total Asset Turnover on Company Value in the automotive sub-sector listed on the Indonesia Stock Exchange for 2018 - 2022. The sample for this study was 16 automotive sub-sector companies listed on the Indonesia Stock Exchange for the 2018-2022 period. This research was conducted using the panel data regression method assisted by the Eviews 10 program and Microsoft Excel 2016. The results showed that the Quick Ratio and Total Asset Turnover partially but not significantly affected Firm Value. Meanwhile, the return on assets and debt-to-equity ratio significantly affect the firm's value. Simultaneously, the quick ratio, return on assets, debt-to-equity ratio, and total asset turnover significantly affect firm value.

Evaluating Financial Health and Sustainability of Post-Merger Port Operations in Indonesia: Liquidity and Profitability Insights

This study aims to analyze the financial health of PT Pelabuhan Indonesia (PT Pelindo) after the merger with a liquidity and profitability assessment approach for the sake of the company's survival in global economic turmoil and increased digital services for consumers who use transportation services. The method used is secondary data in the form of audited financial statements (2021-2023). This research uses a descriptive quantitative approach by analyzing the company's liquidity, profitability, and efficiency. The analysis technique uses liquidity financial ratio analysis, including current, quick, and cash ratios. In contrast, profitability ratios include gross profit margin (GPM), net profit margin (NPM), return on assets (ROA), and return on equity (ROE) to describe the company's financial health condition. The results and discussion of the study indicate that the Indonesian port company (PT Pelindo), after the merger from 2021 to 2023 suggests that it needs to implement a liquidity strategy through financial restructuring with a focus on managing current assets and current liabilities, increasing cash efficiency, accelerating collections, and reviewing capital structure to ensure liquidity remains adequate and reduce liquidity risk, especially with the downward trend in cash ratio which can threaten the company's stability in the future. Improving the profitability of Indonesian port companies should focus on operational cost efficiency, including digitalization, process and preventive maintenance, and collaborating with strategic partners to increase revenue, diversify port services, and optimize asset usage to maintain long-term financial stability and minimize negative impacts and external fluctuations.

LIQUIDITY RATIO ANALYSIS OF PT. KIMIA FARMA (Persero) Tbk: 2019-2022

This research aims to measure the financial performance of PT. Kimia Farma (Persero) Tbk, listed on the IDX, from 2019 to 2022 using liquidity ratios such as the Current Ratio (CR), Quick Ratio (QR), and Cash Ratio (CR). Employing quantitative methods, the study analyzed secondary data from the company's financial reports published by the IDX. The findings reveal that the company's financial condition is poor due to fluctuating and inconsistent performance each year. The highest current ratio was 105.8% in 2022, slightly above 105.4% in 2021, with the lowest at 89.7% in 2020, indicating a troubling decline. The quick ratio peaked at 66.3% in 2022 and hit a low of 53.5% in 2020, suggesting a reasonably good but inconsistent condition. The cash ratio reached a high of 26.8% in 2022 and a low of 12.5% in 2021, pointing to poor liquidity. Overall, the study shows that PT. Kimia Farma (Persero) Tbk does not exhibit strong or stable liquidity, as evidenced by the variations and declines in these ratios over the years.