Current Assets Turnover Research Articles

How did Paggadde-gadde Maintain its Business? An Ethnography Study Before and During Pandemic of Covid-19

The arrival of the Covid 19 Virus in Indonesia, which is recognized as a national disaster by the government, destroys the economic sector from micro to macro. On the bottom line, small entrepreneurs such as paggadde-gadde were significantly affected among other types of businesses. This study seeks to reveal the culture in the life of a paggadde-gadde in Makassar in an effort to maintain his small business, before and during the pandemic occurs in 2020. The research method used is ethnography, by taking twelve steps of step-by-step research formulated by Spradley (1979). Ethnographic records and analysis results from this study reveal the strategy taken before the pandemic is to provide customers with ease of transactions with loan goods when the customer, who is a neighbor of paggadde-gadde himself, is in financial trouble. However, during a pandemic, another strategy is carried out by not providing loans for a while so that the current asset turnover ratio remains stable. This research can then be used as a reference for other paggadde-gadde in Makassar in particular, and similar home entrepreneurs in general. The results of the research can also be used as a reference for city governments in formulating policies related to regulations involving small businesses such as paggade-gadde businesses.

PENGARUH TAX AMNESTY TERHADAP PROFITABILITAS PERUSAHAAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

Tax amnesty policy in Indonesia has an impact on companies listed on the Capital Market. Companies that take advantage of tax amnesty can be identified from the increase in net assets and equity. This increase results in an increase or decrease in profitability and may affect investors' interest in investing. This research aimed to analyze the influence of tax amnesty and internal and external factors on the company's profitability. This study's samples are companies listed on the main board of the Indonesia Stock Exchange between 2013 and 2018. Panel data regression was used in this study to analyze the data. The result showed that tax amnesty had a significant negative effect on profitability. Internal factors that had a significant positive effect on profitability were current ratio and total asset turnover, while debt to equity ratio negatively affected profitability. External factors that had a significant positive effect on profitability were interest rates and rupiah exchange rates. Tax amnesty negatively affected profitability resulting in corporate profits declining dramatically during the tax amnesty program. Based on the results, it could be concluded that several factors could affect profitability, such as tax amnesty policy, internal factors, and external factors of the company. Keywords: external factors, internal factors, panel data regression, profitability, tax amnesty

Management and Economic Sustainability of the Slovak Industrial Companies with Medium Energy Intensity

Industry 4.0 and related automation and digitization have a significant impact on competition between companies. They have to deal with the lack of financial resources to apply digital solutions in their businesses. In Slovakia, Industry 4.0 plays an important role, especially in the mechanical engineering industry (MEI). This paper aims to identify the groups of financial ratios that can be used to measure the financial performance of the companies operating in the Slovak MEI. From the whole MEI, we selected the 236 largest non-financial corporations whose ranking we obtained according to the amount of generated revenues in 2017. Using factor analysis, from eleven traditional financial ratios, we extracted four independent factors that measure liquidity (equity to liabilities ratio, quick ratio, debt ratio, net working capital to assets ratio, current ratio), profitability (return on sales, return on investments), indebtedness (financial leverage, debt to equity ratio), and activity (assets turnover, current assets turnover) of the company. Our analysis is an essential prerequisite for developing a realistic financial plan for companies operating in the MEI, especially when considering investments in new technologies related to Industry 4.0.

The Effect of Liquidity Ratio and Activity Ratio on Profit Growth with Company Size, Leverage, and Return on Assets as Control Variables in Coal Mining Companies Listed on the Indonesia Stock Exchange

This study aims to analyze the effect of the liquidity ratio (current ratio) and activity ratio (total asset turnover) on profit growth with firm size, leverage, and return on assets as control variables. The population in this study are mining companies listed on the Indonesia Stock Exchange for the 2015-2019 period. The data used in this study is the financial statements of mining companies listed on the Indonesia Stock Exchange. The analytical method used is the quantitative method, while the analytical technique used is panel data linear regression, and partial hypothesis testing using t-test. The results showed that the results of the F test on the variable current ratio (CR) and total asset turnover had a significant positive effect on profit growth. The results of the t-test indicate that the current ratio (CR) and total asset turnover have a significant positive effect on profit growth. This study supports the results of research conducted by Suyono (2020) which states that the liquidity ratio (current ratio) has a significant effect on profit growth.

Environmental Information Disclosure and Financial Performance – Empirical Evidence from Heavily Polluting Industries in China

Focusing on the quality of corporate environmental accounting information disclosure (EID), this paper attempts to explore the impact of financial performance on environmental information disclosure. We take listed companies in Chinese heavily polluting industries as the research object, and construct a multiple regression model for data analysis via SPSS. According to Chinese practice, we divide the financial indicators into four areas: solvency, operating capacity, profitability and development capacity, and select four indicators to represent them. The empirical results show that net working capital, current asset turnover and equity growth rate are positively correlated with EID, and return on total assets is negatively correlated with EID. This result means that the solvency, operating ability and development ability in financial performance can promote the improvement of EID, but profitability cannot.

PENGARUH CURRENT RATIO, DEBT RATIO, DAN TOTAL ASSET TURNOVER RATIO TERHADAP FINANCIAL DISTRESS PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

<div><table cellspacing="0" cellpadding="0" align="left"><tbody><tr><td align="left" valign="top"><p><em>Each company aims to profit and maintain the continuity of the company. When the company is unable to maintain financial performance stability, then the company will experience financial distress financial problems. financial ditress marked by negative operating profit of the company for two consecutive years and this occurred in manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2017-2018. This research was conducted with the aim of knowing the influence of current ratio, debt ratio and total asset turnover ratio on financial distress to Manufacturing companies listed on the Indonesia Stock Exchange (IDX) period 2017-2018 both partially and simultaneously.</em></p><p><em>The research method used in this study is quantitative research method and descriptive research, the population of this research is all manufaktur companies listed on the Indonesia Stock Exchange (IDX) period 2017-2018 which is as many as 117 companies. Research sample of 59 companies with financial report data 2017-2018 with 181 research data. Sample techniques use purposive sampling. Data analysis techniques use descriptive statistics and logistics regression analysis with processing techniques using SPSS 20. </em></p><p><em>It concluded that the results of the determination coefficient using nagelkerke's R Square amounted to 29.9% and the hypothetical test results of this study were either partially and simultaneously current ratio, debt ratio and total asset turnover ratio influential and significant to financial distress. Advice for the company, by improving the performance of the company to avoid financial distress. For other researchers, it is recommended to add free variables other than current ratio, debt ratio and total asset turnover ratio to things that may affect financial distress.</em><strong></strong></p></td></tr></tbody></table></div>

Faktor Keuangan dan Return on Asset melalui Debt Equity Ratio

The purpose of this study is to determine the effect of the Current Ratio, Debt Turnover Ratio, Inventory Turnover Ratio, Total Asset Turnover Ratio and Debt to Equity Ratio to the Ratio of Return on Assets. The sample used was 12 automotive sub-sector companies and components that met the criteria for the distribution of 2011-2018. The method of collecting data using purposive sampling method. Data is obtained from annual reports that are listed on the Indonesia Stock Exchange. The analytical tool used in this study uses multiple linear regression analysis. The results of this study indicate that the Current Ratio and Total Asset Turnover Ratio have a significant positive effect on the ratio of return on assets. Variable Accounts Receivable Ratio and Debt to Equity Ratios have a significant negative effect on the ratio of return on assets. Based on path analysis and the Sobel Test, it can be concluded that the debt to equity ratio only mediates the effect of the Current Ratio to the Ratio of return on assets.

Impact of Operational Efficiency and Financial Performance on Capital Structure using Earnings Management as a Moderator Variable

This research aims to investigate the association between operational efficiency and financial performance of the company on capital structure which is indicated in terms of the relative balance of the company financing sources using the earning management as a moderator variable in the process of management decision making regarding the enhancing the balance of the firm capital structure. We use a sample of 65 listed non-financial companies in the Egyptian Stock Exchange (EGX) during the 7 years (2013-2019). Three panel models for estimating the three multiple linear panel regression equations used in this research to test the impact of operational efficiency, ROA, ROE, gross profit margin, current ratio, asset turnover, inventory turnover, Tobin’s Q ratio and firm size on capital structure using the earnings management as a moderator variable. Findings indicate that ROE, gross profit margin and firm size have a positive significant impact on company’ capital structure, while operational efficiency, ROA, Tobin’s Q ratio and all liquidity ratios used in the first regression model (current ratio, asset turnover and inventory turnover) have a significant negative relationship with capital structure. Moreover, findings indicate that the firm’ operational efficiency, gross profit margin and Tobin’s Q ratio have a positive significant impact on company’ earnings management, while ROA, ROE and all liquidity ratios used in the second regression model (current ratio, asset turnover and inventory turnover) have a significant negative relationship with earnings management. Finally, the statistical results shows that all the variables used in the third regression model namely, earnings management, Tobin’s Q ratio and firm size have a significant negative relationship with the capital structure of the firm.

A Study on Working Capital Management at EID Parry

The working capital management has an important role for the firm’s success or failure because of its effect on firm’s performance and liquidity. A well designed and implemented working capital management is expected to contribute positively to the creation of a firm’s value. “Working Capital” is the capital invested in different items of current assets needed for the business, viz, inventory, debtors, cash and other current assets such as loans & advances to third parties. Those current assets are essential for smooth business operations and proper utilization of fixed assets. The study is descriptive in nature. The secondary data is used for this study and four years balance sheet. The Working Capital Turnover Ratio, Current Asset Turnover Ratio, Probability Ratio. It was concluded that the working capital is a vital role of an organization

PENILAIAN TINGKAT KESEHATAN KEUANGAN PT POS INDONESIA (PERSERO) PERIODE 2016-2018

This study aims to analyze the development of health assessment indicators and the financial health condition of PT Pos Indonesia (Persero). This research used a quantitative approach. The analysis technique used for evaluating the level of financial health referred to the Decree of The Minister of State-Owned Enterprises No. Kep-100/MBU/2002. The data collection technique used was documentation studies sourced from the annual report of PT Pos Indonesia (Persero) from 2016 through 2018. The results showed that the development of the indicator value of return on equity, return on investment, and cash ratio decreased, while the value of collection periods, the ratio of equity to total assets, and inventory turn over increased. This study also found the fluctuated value of the current ratio and total asset turnover. The financial health assessment in 2016 and 2017 had a healthy predicate. However, in 2018, it had an unhealthy financial health assessment predicate. Therefore, the company needs to have better financial performance to achieve good financial health conditions that will finally affect all stakeholders.
 Keywords: financial health assessment, financial health development, financial performance, financial health predicate

КОМПЛЕКС МЕРОПРИЯТИЙ ПО УПРАВЛЕНИЮ ОБОРОТНЫМ КАПИТАЛОМ КОМПАНИИ

The company working capital ensures the products, works and services production and sale process continuity. At the stage of growing economy, effective working capital management allows businesses to achieve their goals with maximum efficiency and gain competitive advantages by accelerating the current assets turnover The purpose of this article is to develop a comprehensive approach to managing the company’s working capital. In order to achieve the stated goal, the existing methods of planning the need for the company’s current assets were studied; a critical assessment of models for working capital management by Russian and foreign authors was carried out. The article presents a set of interrelated points for managing the company’s working capital, including four consecutive stages. The scientific novelty of the study is to improve the methodology for planning the need for current assets of the company, based on rationing; developing and offering recommendations for the formation of insurance reserves in the context of current assets elements; justification of the current assets turnover indicator choice as the main one when comparing different combination of approaches to the company current assets formation and strategies for financing the planned need for current assets.

Pengaruh Current Ratio dan Total Asset Turnover terhadap Perubahan Laba Pada Perusahaan Manufaktur Sub Sektor Makanan dan Minuman Yang Terdaftar Di BEI

The purpose of this study was to determine the effect of the current ratio and total assets turnover on changes in profit in the food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange (IDX). Current Ratio is included in the type of liquidity ratio and Total Assets Turnover is included in the type of Activity ratio. Researchers conducted tests to (1) determine the effect of Current Ratio and Total Assets Turnover on food and beverage sub-sector manufacturing companies listed on the IDX (2) to determine the effect of Current Ratio on Profit Changes in food and beverage sub-sector manufacturing companies listed on the IDX (3) ) to know the effect of Total Asset Turnover on Profit Changes in the food and beverage sub-sector manufacturing companies listed on the IDX. The method used in this research is an associative method with a quantitative approach. Based on the results of the study, it shows that (1) Current Ratio and Total Assets Turnover simultaneously have a positive and significant effect on Profit Changes (2) Current Ratio partially has no effect on Profit Changes (3) Total Asset Turnover partially has a positive and significant effect on Profit Changes.

Ways to improve the efficiency of current assets in agriculture

Introduction. The overall economic efficiency of the enterprise depends on the efficiency of current assets. The nega-tive impact of the financial crisis is forcing agricultural enterprises to constantly improve the process of current assets man-agement. The purpose of the research is to develop ways to improve the efficiency of current assets in the activities of agricul-tural enterprises. Results. The main tasks for ensuring the efficient use of current assets in the activities of agricultural enterprises are identified. The change consequences in the turnover rate of current assets have been established. The directions of efficiency increase of formation and use of current assets are resulted. Methods of accelerating current assets by stages of their cycle are described. Actions aimed at increasing the efficiency level in the use of current assets are identified. The measures influenc-ing the increase of current assets profitability are given. Factors influencing the effective use of current assets of agricultural enterprises are characterized and systematized. Emphasis is placed on the need to identify deviations by type of current assets and develop measures to optimize them. Reserves for accelerating the turnover of current assets are determined, taking into account the stage of their cycle in terms of the object of influence and the result obtained. The existence of a deficit of current assets in the enterprise activity of agricultural branch is proved. Emphasis is placed on the need to implement a financial policy in agriculture aimed at the optimal formation and use of current assets. The mechanism role of effective use of current assets in maintaining the level of financial stability and solvency of agricultural enterprises is substantiated. Conclusions. The use of current assets depends on the influence of a significant number of factors. One of the key fac-tors is the work of the accounting department at the enterprise. Proper organization of the formation and use of current assets in the activity process depends on information support. Key words: agricultural enterprise, current assets, mechanism of effective use of current assets, financial stability, ef-ficiency.

ASSESSMENT OF THE FINANCIAL SITUATION OF COMPANIES LISTED ON THE WARSAW STOCK EXCHANGE

The aim of the article is to assess the financial situation of companies in the clothing and footwear sector listed on the Warsaw Stock Exchange in 2017. Firstly, financial ratios were calculated for each entity, the ranking was created and the companies were grouped in terms of their financial situation. In this way, a general picture of the competitive position of companies was obtained. The first group includes three companies with the best financial standing. They obtained the highest efficiency in the use of assets, as evidenced by the highest average values for the following stimulants: total assets turnover, current assets turnover and return on assets. Due to the fact that knowledge of financial ratios in the changing environment may be insufficient to assess the financial standing of enterprises, the weighted average cost of capital (WACC) with their components was calculated for them, which allowed judging the assessment of the structure of financing the operations of individual companies and the comparison with the financial situation determined on the basis of indicators. The best financing structure for their activities is held by companies that have been classified in high positions in a ranking based on financial indicators. However, there was one exception, which confirms the need to use different methods to assess the financial situation.

PENGARUH CURRENT RATIO, DEBT TO EQUITY RATIO, TOTAL ASSET TURNOVER DAN KEBIJAKAN MANAJERIAL TERHADAP PERTUMBUHAN LABA

Earnings growth is an increase in profit or decline in profit per year and can be used to assess how the development of a company's performance. The purpose of this study is to examine and analyze the effect of current ratio, debt to equity ratio, total asset turnover and managerial ownership on earnings growth. The population in this study is the banking sub-sector companies listed on the Indonesia Stock Exchange for the period of 2016-2018. The sampling technique in this study used a purposive sampling method and obtained a sample of 20 companies. The data analysis method uses the classic assumption test and multiple linear regression analysis using SPSS 20, with the results of data analysis showing that, debt to equity ratio and managerial ownership influence earnings growth. While the current ratio and total asset turnover has no effect on profit growth. Keywords : Profit Growth, Current Ratio, Debt to Equity Ratio, Total Aset Turnover, Managerial Ownership

Profitability performance under capital structure and other company characteristics

The main objective of this paper is to explore how capital structure and other financial characteristics of companies influence Croatian hotel industry performance. This study’s key goal is to analyze the debt-equity structure of hotel industry and to demonstrate its correlation with financial performance. The high significance and impact of hotel industry on the economy in Croatia was main reason why authors opted to investigate it. This study was carried out using panel data methodology on a sample of 19 Croatian hotel companies listed on the Zagreb Stock Exchange during the period of 2003-2017. Return on assets and return on equity were used as performance proxies and dependent variables. Twelve variables as capital structure measures and other company characteristics – cash ratio, current liquidity ratio, structure ratio, debt ratio, debt factor (in years), equity to non-current assets, total assets turnover, current assets turnover, accounts receivables, activity ratio, return on revenue and crises during the 2009-2015 period – were used as independent variables. The findings suggest that cash ratio, structure ratio, debt factor (in years), equity to non-current assets, total assets turnover, activity ratio, accounts receivables, return on revenue and crises in the 2009-2015 period are related to the financial performance of the Croatian hotel industry. Although profitability performance theory and influence of capital structure and other company characteristic on it is widely studied in financial literature, there are not many studies examining the hotel industry, especially in Croatia. Finally, this study should provide managers with additional insights in making optimal financial decisions.

A correlational analysis of financial ratios of companies listed on the Mexican stock market in the period 2008-2017

The objective of this investigation was to determine the correlation rates by economic sectors of companies that are listed on the Mexican stock market in the 2008-2017 period. The variables were: as dependent the financial ratio on operating profitability and as independent those of acid, financial cycle, working capital, net working capital, financial expense coverage, solvency ratio, short-term debt, accounts receivable days, inventory days, suppliers days, available, current assets turnover turnover, net fixed assets turnover and total assets turnover. To calculate the correlations, the financial information of 29 non-financial public companies in the Economática database was used. Correlation rates were calculated using bivariate linear regression analysis in the SPSS. The main findings are that in the sector of merchandise stores and department stores and in the sector of the beverage industry, significant positive correlation rates of 0.720 and 0.672 were obtained respectively. And three sectors with medium positive correlation which were residential building, food industry and the basic iron and steel industry. The most important relationship was between operating profitability and financial expense coverage.

Laffer points, area of fiscal contradictions and taxpayers’ acceptance power

The Laffer curve is the eternal problem of mathematical economics. Attempts to find the Laffer curve functions lead to new results that do not give the function in coordinates “tax burden - tax revenues” but give results in larger dimensions. Purpose of the article is developing tools to access the excessive tax burden on organizations. The general methods used in the article are analysis, generalization, synthesis. Special methods are mathematical induction, mathematical methods. In the study previously proposed mathematical models of Laffer curves by V.G. Papava (Ananiashvili, Papava, 2010) and E.V. Balatskii (Balatskii, 2000) are generalized and clarified. Taxation limit concept is expanded and necessity of determining the lower taxation limit is shown. The new approach to determining the values of Laffer points based on the use of tax burden and current assets turnover ratio is proposed. The determination of taxpayers’ acceptance power (in meaning “exponent”) is introduced and the property linking it with area of fiscal contradictions is shown. The constancy of the location of the first and second kind Laffer points is proved. Conditions limiting the sets of values of Laffer points are given. As a result the concept of the area of fiscal contradictions is divided with concepts of Laffer curves and Laffer points.

Liquidity as a criterion for optimizing the structure of the enterprise’s current assets

The article investigates the optimization current assets structure of the enterprise. The assets of the company are one of the most important objects of financial management, because the condition and efficiency of their use affects the level of profitability of business activities. Undoubtedly, management decisions on current assets are characterized by a greater degree of maneuverability, which reinforces the need for increased attention to managing this type of assets. The purpose of the article is to scientifically substantiate the theoretical and practical principles of applying the liquidity criterion in optimizing the structure of current assets of the enterprise, to determine the impact of the applied criterion on the efficiency of use of current assets and their components. Decisions to improve the management of current assets should be based on key criteria, taking into account the state of the enterprise, the results of the financial analysis, which are the basis for making effective management decisions. In our opinion, one of the important criteria that determines the solvency of an enterprise is liquidity. At the enterprise under study, the liquidity indicators are not within the normative values. The proposed optimal structure of current assets, determined on the basis of ensuring the normative values of liquidity indicators, has demonstrated its effectiveness. The result of the optimization was an increase in the turnover of current assets and an increase in the efficiency of their use. Current assets forecast should become a must for financial work in every domestic enterprise. Different variants of the structure should be forecasted according to the selected criteria, based on the goals of the enterprise development and the initial conditions of its functioning.

PENGARUH CURRENT RATIO, TOTAL ASSET TURNOVER TERHADAP RETURN ON ASSET PADA PT. INTAN WIJAYA INTERNASIONAL,TBK

The purpose of this study was to determine the effect of the current rasio of total asset turnover to return on asset at PT. Intan Wijaya Internasional, Tbk in 2014-2018. The types and the sources of data that the writer used are qualitative data and quantitative data. The results showed that partially the current ratio had a positive effect but did not significant effect on return on assets. Simultaneously, the variable current ratio, total asset turnover has a positive but not significant effect on retunt on assets. The calculation of the multiple correlation coefficient is 24,3% which means the current ratio and total asset turnover has a positive but low effect ob return on assets. The calculation of the coefficient of determination is 5,9% by return on assets can be explained by the current ratio, total asset turnover.