Effect of Liquidity on Profitability

Yanshanti Buan Agusfina, Sinarti

2020

Abstract

This study aims to determine the effect of liquidity and profitability on 20 companies listed on the Indonesia Stock Exchange in the infrastructure, utilities and transportation sectors for 5 years from 2013 -2017. This study uses regression analysis to test 3 indicators of liquidity ratio (current ratio, quick ratio, and liquid ratio) and 3 indicators of profitability ratio (net profit margin, return on equity, and return on capital employed). The results of this study found that 2 liquidity indicators affect profitability indicators and 7 liquidity indicators do not affect profitability indicators. Liquidity indicators that affect profitability indicators are the Current Ratio significantly influence Return on Equity and, Quick ratio significantly influence to Return on Capital Employed.

Paper Citation

in Harvard Style

Agusfina Y. and Sinarti. (2020). Effect of Liquidity on Profitability. In Proceedings of the 2nd International Conference on Applied Economics and Social Science - Volume 1: ICAESS, ISBN 978-989-758-517-3, pages 147-153. DOI: 10.5220/0010354301470153

in Bibtex Style

@conference{icaess20,
author={Yanshanti Buan Agusfina and Sinarti},
title={Effect of Liquidity on Profitability},
booktitle={Proceedings of the 2nd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,},
year={2020},
pages={147-153},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010354301470153},
isbn={978-989-758-517-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Applied Economics and Social Science - Volume 1: ICAESS,
TI - Effect of Liquidity on Profitability
SN - 978-989-758-517-3
AU - Agusfina Y.
AU - Sinarti.
PY - 2020
SP - 147
EP - 153
DO - 10.5220/0010354301470153