Profitability Variables Research Articles

The impact of COVID-19 on SME profitability: Insights from South Africa

This study aims to investigate the impact of COVID-19 on SME profitability, performance, and operational efficiency. The data were gathered using a structured questionnaire targeting SMEs affiliated with the Centre for Social Entrepreneurship (CSE), Productivity SA, Johannesburg Chamber of Commerce (JCCI), and Durban Chamber of Commerce and Industry (DCCI). A purposive sampling was utilized, specifically choosing SME owners or senior management representatives. The Krejcie & Morgan formula was used to calculate a suitable sample size of 348, resulting in an 81% response rate with 282 participants successfully completing the questionnaire. The instruments’ dependability was validated by Cronbach’s alpha coefficients of 0.906 and 0.769 for the impact of COVID-19 on SMEs and profitability variables, respectively. The findings indicated that the average effect of COVID-19 on SME was 40.3546, with a standard deviation of 7.61450. The average profitability was 5.4921, with a standard deviation of 1.92297. An analysis using a one-sample t-test revealed that the influence of COVID-19 on SMEs did not show a statistically significant impact (p = 0.156). However, the effect on profitability was statistically significant (p = 0.001). These findings emphasize the diverse consequences of the pandemic on the functioning of SMEs, specifically pointing out considerable decreases in profitability. The study recommends that government agencies and financial institutions increase support for SMEs to help them recover from the profitability challenges brought on by the pandemic. Tailored financial relief programs, accessible credit facilities, and long-term recovery strategies should be implemented to cushion SMEs against future economic shocks.

Pengaruh Profitabilitas, Likuiditas, Ukuran Perusahaan Dan Pertumbuhan Perusahaan Terhadap Nilai Perusahaan

The value of the company will be reflected through the company's shares. This study aims to test the profitability variables measured by return on assets (ROA), liquidity measured by current ratio (CR), company size measured by firm size (FS), and company growth measured by assets growth (AG) on the company's value. The sampling technique was purposive sampling. The data used are consumer non-cyclical companies listed on the IDX for the 2019-2023 period. Consumer non-cyclical companies are part of the manufacturing industry. Consumer non-cyclical companies are engaged in basic necessities, cigarettes and beauty. The data was processed using Eviews 12 and Microsoft Excel software. It is hoped that this research can provide considerations in decision making regarding variables that can increase company value. The conclusion of this study is that profitability has a significant positive effect on company value. Variable liquidity, company size and growth have no significant effect on company value.

Pengaruh Profitabilitas, Likuiditas, Ukuran Perusahaan, Leverage, Kepemilikan Manajerial dan Kepemilikan Institusional Terhadap Nilai Perusahaan: Studi pada Perusahaan Food and Baverage yang Terdaftar di Bursa Efek Indonesia Tahun 2019-2022

This research aims to examine the influence of the independent variables profitability, liquidity, company size, leverage, managerial ownership and institutional ownership and the dependent variable firm value. The object of this research is food and beverage companies listed on the Indonesia Stock Exchange 2019 - 2022. The sampling method used is the purposive sampling technique. This research was conducted on 19 companies and the number of observations was 532 data using a quantitative-descriptive approach. The analytical method used is multiple regression which consists of classic assumption tests (normality test, multicollinearity test, heteroscedasticity test and autocorrelation test) and hypothesis tests (coefficient of determination test, T test, F test). The results of this research show that profitability and leverage have a positive and significant effect on company value, while liquidity, company size, managerial ownership and institutional ownership have no effect on company value.

Peran Leverage dan Profitabilitas dengan Kebijakan Deviden sebagai Variabel Moderasi terhadap Nilai Perusahaan

This research aims to examine the influence of leverage, profitability and dividend policy on company value as well as the role of dividend policy in moderating (giving a strengthening or weakening effect) the influence of leverage and profitability on the value of consumer good companies on the Indonesia Stock Exchange in 2021-2023.The population in this research is consumer good companies on the Indonesian stock exchange for the 2021-2023 period with a total of 48 companies. Then a sample of 25 companies in the period 2021-2023 used the purposive sampling method.This research is quantitative research where the data is then analyzed using the multiple linear regression method using moderation test analysis as a tool for measuring relationships. The results of this research show that leverage has a negative and significant effect on company value, profitability has a positive and significant effect on company value, dividend policy has a positive and significant effect on the company and dividend policy has a strengthening effect on the leverage and profitability variables on company value.Dividend policy can be a moderating variable for leverage and profitability on company value. It is known that the R Square value is 0.834, which means that the contribution of the leverage variable and profitability variable to the company value variable after the moderation variable (dividend policy) is 83.4%.So it can be concluded that after the existence of the moderation variable (dividend policy) it can strengthen the influence of the leverage variable and profitability variable on the company value variable.

Pengaruh Profitabilitas, Leverage, dan Kepemilikan Institusional Terhadap Nilai Perusahaan pada Perusahaan Properti dan Real Estate yang Terdaftar di Bursa Efek Indonesia Tahun 2020-2023

The purpose of this study was to analyze the effect of profitability, leverage, and institutional ownership on firm value in the property and real estate sector listed on the Indonesia Stock Exchange (IDX) for the period 2020-2023. The method used in this research is a causal quantitative approach using secondary data obtained from the Company's annual financial statements published on the IDX. The population in the study was 92 companies and obtained research samples using purposive sampling technique 53 companies from 2020 to 2023, resulting in 212 samples. The results of the study state that the variables of profitability, leverage, and institutional ownership simultaneously have a significant effect on firm value. Partially, profitability has no effect on firm value. Meanwhile, leverage and institutional ownership have a significant effect on firm value.

Pengaruh Struktur Kepemilikan dan Profitabilitas terhadap Manajemen Laba pada Consumers Cyclical Industry

Publication and disclosure of information to the general public are of particular concern to management because the company wants to show good performance and image that will have a long-term impact on the company. The component in the financial report that is first highlighted by stakeholders is related to profit. Thus, companies often take profit management actions only to manipulate profits as a reflection of good company performance. Many factors influence companies to carry out profit management such as ownership structure and company profitability. The study aims to examine the effect of managerial ownership, institutional ownership, and profitability on profit management in the non-primary goods industry listed on the IDX in 2018-2022. The sample uses data from 47 companies from a total population of 151 companies. The study uses descriptive statistics with quantitative methods. So, this study is a secondary study because the data used in the study uses data from the company's financial statements and annual reports. Sampling using purposive sampling because there are established criteria. The results of the study state that there is a significant influence of managerial ownership and institutional ownership on profit management. Meanwhile, the profitability variable does not have a significant influence on profit management.

The Influence Of Leverage, Corporate Governance And Capital Intensity On Tax Avoidance In Mining Companies Listed On The Indonesia Stock Exchange Year 2020 – 2023

This research aims to examine the influence of leverage, corporate governance and capital intensity on tax avoidance in mining companies listed on the Indonesia Stock Exchange in 2020-2023. Samples were taken using the purposive sampling method. The population in this research is all mining companies listed on the Indonesia Stock Exchange in 2020-2023. From this population of 43 mining companies, 9 mining companies were obtained as samples. Data were analyzed using multiple linear regression. The test results show that the variable profitability, leverage has a positive effect on tax avoidance. The board of commissioners and the audit committee as proxies of corporate governance as well as the capital intensity variable also show a positive influence on tax avoidance

Analysis of the application of financial management to the profitability of MSMES through debt management of MSME Players in Kwala Serapuh Village, Langkat

This study aims to analyze the effect of financial management implementation on the profitability of Micro, Small and Medium Enterprises (MSMEs) through debt management. The case study was conducted on MSME players in Kwala Serapuh Village. Good financial management is key to the sustainability and success of a business, especially MSMEs that have limitations in terms of capital and resources. This research uses quantitative methods by distributing questionnaires to MSME actors in Kwala Serapuh Village. The number of samples in this study were 50 respondents of MSME actors. Data analysis was carried out using the Partial Least Square (PLS) method using SmartPLS version 4 software. PLS is one of the methods of solving Structural Equation Modeling (SEM). The results showed that the variable of financial management implementation has a positive and significant influence on debt management. The variable of financial management implementation has a positive and significant influence on the profitability of MSMEs. The debt management variable has a positive and significant influence on the profitability of MSMEs. The variable of financial management implementation on MSME profitability through debt management has a positive and significant influence on MSME profitability. The debt management variable can be influenced by the application of financial management by 76.1% and the remaining 23.9% is influenced by other variables outside those studied. While the MSME profitability variable can be influenced by the application of financial management and debt management by 50.9% and the rest is influenced by other variables outside the study.

PENGARUH OPINI AUDIT, REPORTING DELAY, PROFITABILITAS, SOLVABILITAS, DAN LIKUIDITAS TERHADAP HARGA SAHAM

This study aims to examine the effect of Audit Opinion, Reporting Delay, Profitability, Solvency, and Liquidity on Stock Prices. The technique of taking samples using purposive sampling method. The data used in this study is secondary data in the form of annual financial reports from 32 banking companies listed on the Indonesia Stock Exchange (IDX) during the period 2019 – 2021. Data analysis was carried out using the SPSS application version 25 for windows. The results of the T-TEST showed that the significance value of the audit opinion variable was 0.468, the significance value of the reporting delay variable was 0.840, the significance value of the profitability variable was 0.000, the significance value of the solvency variable was 0.543, the significance value of the liquidity variable was 0.011. Then the results of the F TEST obtain a probability value of 0.001 which is smaller than the significance value of 0.05. Based on these results it can be concluded that, partially, the profitability variable has a significant positive effect on stock prices and the liquidity variable has a significant negative effect on stock prices. while for the variable audit opinion, reporting delay, and solvency, have no significant effect on stock prices. Then simultaneously concluded that the variables of audit opinion, reporting delay, profitability, solvency, and liquidity together have a significant effect on stock prices.

Economic Assessment of Soybean Production in Amravati District: Costs, Returns, and Farm Size Dynamics

Economic Assessment of Soybean Production in Amravati District: Costs, Returns, and Farm Size Dynamics

Peran Profitabilitas dalam Struktur Kepemilikan dan Kesejahteraan Pemegang Saham

This study examines profitability's role in mediating ownership structure on firm value. Managerial ownership as a proxy for ownership structure shows an inconsistent effect on firm value. Efforts made to overcome this gap propose profitability variables as mediators for the impact of ownership structure on firm value. Therefore, a sample of consumer goods industry companies listed on the Indonesia Stock Exchange for 2020-2022 was analyzed using WarpPls 5.0 as its software. The results support agency theory, especially the GCG (good corporate governance) mechanism.

The Role of Financial Rations on Financial Distress Conditions in Transportation and Logistics Sector Companies at Indonesian Sharia Stock Index

Financial distress as an early warning signal of conditions that can lead to bankruptcy of a company. This study aims to examine the effect of financial ratios, namely liquidity, profitability, solvency, and activity on the financial distress of a company. The type of data used in this study is secondary data sourced from financial reports available at www.idx.com. The sample selection method is carried out by purposive sampling. The sample in this study was 44 Transportation and Logistics companies listed on the Indonesian Sharia Stock Index during the 2020-2023 period. The data testing tool used is multiple linear regression. The results of the F test analysis show that simultaneously, the variables of liquidity, profitability, solvency and activity have a significant effect on financial distress. Meanwhile, the results of the T test show that the variables of liquidity, profitability, solvency and activity have a significant effect on financial distress.

THE IMPACT OF CASH TURNOVER, INVENTORY TURNOVER, AND RECEIVABLES TURNOVER ON PROFITABILITY IN PHARMACEUTICAL SUB-SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE PERIOD 2019-2023

The profitability of a company refers to its ability to generate net profit from activities conducted during an accounting period. Profit reflects the performance achieved from transactions undertaken by the company over a specific period. Stakeholders use profit as an indicator to assess the effectiveness of management in running the company. One sub-sector that plays an important role in the national economy is the pharmaceutical sub-sector. The pharmaceutical industry is one of the mainstay sectors that plays a major role in the main movement in the future. This subsector's investment development isn't always fascinating, according to the Investment Coordinating Board (BKPM). Variations in profit income or profitability were observed between 2019 and 2023, as per the yearly report study. Finding out how the variables of cash turnover, inventory turnover, and accounts receivable turnover affect profitability is the main goal of this study. Sampling in this study was done by purposive sampling technique, which is a sampling technique based on certain criteria so that a sample of 11 Pharmaceutical Sub-Sector Companies was obtained. The analysis technique used was multiple linear regression using the SPSS Version 11 analysis tool. The results showed that cash turnover had a positive and insignificant effect on profitability, inventory turnover had a negative and insignificant effect on profitability and receivables turnover had a positive and significant effect on profitability.

ANALISIS RASIO KEUANGAN DALAM MEMPREDIKSI PERTUMBUHAN LABA PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

This research aims to test the hypothesis of Financial Ratio Analysis in Predicting Profit Growth in Banking Companies Listed on the Indonesia Stock Exchange (BEI). This research uses quantitative methods. The population in this study was 47 banking companies listed on the Indonesia Stock Exchange (BEI). The sample in this research consisted of 12 companies with data on 60 banking companies. The sampling technique uses purposive sampling with the criteria of all banking companies listed on the Indonesia Stock Exchange (BEI). The data analysis technique in the research uses the classic assumption test, which consists of the normality test, multicollinearity test, heteroscedasticity test, autocorrelation test, multiole linear analysis, hypothesis testing consisting of the t test (partial) and f test (simultaneous), and the coefficient test determination (R2). The results of the t test hypothesis test concluded that partially Return On Asset (ROA) had no effect on profit, Net Profit Margin (NPM) has no effect on profit growth, Return On Equity (ROE) has a positive effect on profit growth. Meanwhile, simultaneously. Return On Asset (ROA) had no effect on the profit growth, Net Profit Margin (NPM) had no effect on profit growth, and Return On Equity (ROE) has a positive effect on profit growth. It can be concluded that there is a significant influence of the variables Return On Asset (ROA), Net Profit Margin (NPM), and Return On Equity (ROE) together on the variable profit growth. Keywords : Return On Asset (ROA); Net Profit Margin (NPM); Return On Equity (ROE); Profit Growth

Research on the timing for subsequent water flooding in Alkali-Surfactant-Polymer flooding in Daqing Oilfield based on automated machine learning

Determining the optimal timing for subsequent water flooding in Alkali-Surfactant-Polymer (ASP) flooding is essential to maximizing both the technical and economic outcomes of oilfield blocks. This study identified eight critical parameters that influence the benefits of ASP flooding and established parameter ranges based on data from completed blocks and actual field measurements. The optimal timing for subsequent water flooding was determined by evaluating cumulative net profit variations throughout the ASP flooding lifecycle. Given the complexity and high-dimensional nature of evaluating multiple parameters across diverse blocks, a machine learning-driven optimization model was developed. This model enhances work efficiency by automating complex analyses. However, predictive uncertainties and limitations remain due to the variability in oilfield development and the potential for unpredictable changes in reservoir conditions, external market factors and so on, which may affect the model’s results. The model was applied to six blocks in the Daqing oilfield currently in the chemical flooding phase, where injection schemes, such as extending the polymer slug, were adjusted according to the model’s optimized results. These adjustments yielded an increase in cumulative net profit of 224.9 million CNY compared to the original scheme, with a potential total increase of 752.1 million CNY by the end of the flooding process.

Integrated Reporting, ESG Disclosure, Forecast Accuracy, and Firm Value: Profitability as Moderating Variable

Objective: This study investigate how the quality of IR and ESG disclosures can affect the level of information asymmetry and enhance legitimacy and signal about firm value. Theoretical Framework: IR will increase the company's transparency to stakeholders so that reduces the problem of information asymmetry and long-term business value creation. SDGs encourages organizations to pursue credentials by implementing ESG to increase corporate credibility. High profitability can provide positive signals that encourage managers to implement IR and submit ESG reports, thereby reducing information asymmetry and increasing firm value. Method: Based on data from the IDX database, this study analyses companies that are members of the LQ45 group. We have collected annual reports and sustainability reports for the period between 2013 and 2022. Results and Discussion: IR quality has a negative influence on FA and firm value, while ESG disclosure has a positive influence on FA and firm value. Profitability variable is able to strengthen the effect of IR quality and ESG disclosure on FA. Therefore, IR quality and ESG disclosures have a strong influence on FA. Research Implications: Theoretically, this study’s result strengthen the study of legitimacy and institutional theories in explaining the relationship between IR quality and sustainability disclosures on information asymmetry and firm value in the long run. Practically, it highlights the importance for managers to enhance IR and ESG disclosures, thereby promoting corporate transparency and accountability. Originality/Value: This considers profitability variables to understand the motives and drivers of managers to implement integrated reporting formats and deliver sustainability reporting.

Microprudential Regulations and Bank Lending in Nigeria

Objectives: The current study aimed at investigating the relationship between microprudential regulations and bank lending in Nigeria. Theoretical framework: The theoretical underpinning of the study is drawn on the theory of risk-return tradeoff which maintains that potential return rises with an increase in risk. Method: Financial data of 13 banks over a period of 15 years were sourced from the repository of Central Bank of Nigeria, and were analyzed using the Panel (Least Squares) Multiple regression technique. Results and Discussions: The result of analyses revealed a high R-squared value of 0.75, an indication that microprudential regulation accounted for 75% variation in profitability in the Nigeria banking institution. Also, the F-statistic of 101.31 and a p-value of 0.000, indicated that the Ordinary Least Square regression model is statistically significant at the 1% level. Overall, microprudential regulation impact on lending and profitability in Nigeria. Research Implications: More so, the study’s relevance is evident in its applications to the principles and practice of lending, fund mobilization and other finance related policies and decisions in the banking sector. Originality/ Value: The outcome of the current study is valid and can be used for statistical inference. The conceptual framework of the study is a novel model that demonstrates how the variables in the study are interconnected. Furthermore, the model specification presents a viable template for financial speculations and calculations.

Factors Affecting the Profitability of Islamic Commercial Banks in Indonesia from 2015 to 2019

Profitability of Islamic commercial banks in Indonesia is one of the important aspects in assessing the performance and sustainability of sharia-based financial institutions. One of the indicators used to measure the level of profitability is Return On Asset (ROA). ROA is the ratio between profit after tax to total assets. This ratio reflects the ability of bank management to use its investment resources to increase revenue. This study was conducted to analyze the factors affecting the profitability of Islamic Commercial Banks in Indonesia from 2015 to 2019. The research sample consists of quarterly data on economic growth and inflation from 2015 to 2019, as well as quarterly financial reports from 11 Islamic Commercial Banks in Indonesia that meet the criteria for complete annual financial reports during the period of 2015-2019, totaling 220 data points. The analytical technique used to interpret and analyze the data in this study is the Generalized Least Squares (GLS) panel data regression, operated using Eviews 9.0 software. In a partial analysis, the capital variable has a positive and significant effect on the profitability variable. The liquidity variable has a positive and significant effect on the profitability variable. The bank size variable has a positive and significant effect on the profitability variable. The inflation variable has a positive but not significant effect on the profitability variable. The economic growth variable has a positive and significant effect on the profitability variable.

The Effect of Tax Planning, Leverage, and Profitability on Firm Value in the Consumer Goods Industry Sector Listed on the Stock Exchange Indonesia Year 2019-2023

This study aims to determine the effect of Tax Planning, Leverage and Profitability on Company Value in the Consumer Goods Industry Sector Listed on the Indonesia Stock Exchange in 2019-2023. The population in this study is the Consumer Goods Industry Sector listed on the Indonesia Stock Exchange as many as 51 companies with a research period of 5 years (2019-2023) and obtained a research sample of 17 companies, using purposive sampling method. Based on the results of the t test, it can be seen that the t count on the Tax Planning variable is -1.774 < t table of 1.664 with a probability of t, namely sig 0.08> 0.05. Based on this value, the Tax Planning variable has no effect and is significant to the Company's Value. t test results can be seen that the t count on the Tax Planning variable is -1.774 < t table of 1.664 with a probability of t, namely sig 0.08> 0.05. Based on this value, the Tax Planning variable has no effect and is significant to the Company's Value. In the Leverage variable of -2.189 < 1.664 with a probability t, namely sig 0.03 < 0.05. Based on this value, the leverage variable has a negative and significant effect on firm value. On the profitability variable of 3.184> 1.664 with a probability t, namely sig 0.02 <0.05. Based on this value, the profitability variable has a positive and significant effect on firm value.

Statistical analysis of the impact of profitability in the manufacturing and service sectors on the UK Economy’s Growth

The UK economy's performance is closely tied to the profitability of its Manufacturing Sector (MS) and Service Sector (SS). Understanding these sectors' dynamics is crucial for effective policymaking. Integrating sustainable practices in both sectors enhances profitability and operational efficiency while contributing to economic growth and reducing environmental impact. This study investigates the relationship between UK economic growth and profitability in the MS and SS from 1998 to 2022. The primary objective is to examine how profitability influences the UK's growth trajectory. Employing various statistical methods, including correlation, regression, cointegration, and variance decomposition analyses, the study aims to provide insights into the interplay between GDP and sector profitability. A quantitative approach using secondary data on GDP and profitability from reliable sources is adopted. Correlation analysis explores relationships between these variables, while regression analysis assesses the impact of MS and SS profitability on GDP. Cointegration tests identify long-term equilibrium relationships, and variance decomposition analysis reveals the variability of GDP and sector profitability over time. The correlation matrix indicates positive associations between GDP and both sectors, with the SS showing a stronger correlation. Regression analysis confirms significant effects of both sectors on GDP, with the SS exerting a positive influence and the MS a negative impact. Cointegration tests highlight long-term stability, and variance decomposition analysis emphasizes the dynamic nature of these relationships. This study elucidates the intricate link between UK economic growth and sector profitability, underscoring the SS's critical role in driving expansion while addressing challenges in the MS. Policy recommendations include enhancing productivity and innovation in both sectors, informed by evidence-based decision-making. Overall, the study contributes valuable insights into the UK economy's growth dynamics, guiding sustainable economic development strategies.