liquidity, asset utilization, debt ratio and firm performance: Evidence from Egypt | ||
| MSA-Management Sciences Journal | ||
| Volume 1, Issue 1, August 2022, Pages 20-51 PDF (422.31 K) | ||
| Document Type: Original Article | ||
| Authors | ||
| TareK Hassaneen Ismail1; Moahmed Samy El-Deeb2; Rana Ahmed Rezk3; Anas Hemat3 | ||
| 1Department Of Accounting Cairo University, Cairo, Egypt | ||
| 2Department Of Accounting October University for Modern Sciences and Arts, Egypt | ||
| 3October University for Modern Sciences and Arts, Egypt | ||
| Abstract | ||
| How well firms handle liquidity and asset utilization determines their development, performance, and survival. Different liquidity and asset utilization methods impact firms' bottom lines. While most studies have studied the influence of liquidity and asset utilization on performance independently, this research tests both factors using debt ratio as a mediating variable. The investigation used secondary data from 50 Egyptian listed firms' annual reports from 2019-2021. Data were analyzed using descriptive statistics, correlation, and regression. The study indicated that using tangible assets and current assets (liquidity) affected corporate performance. The debt ratio does not affect asset utilization, liquidity, and company performance. This study may assist management and financial experts in examining the company's growth characteristics, liquidity and asset utilization, business risk, and financial performance to anticipate its future worth. | ||
| Keywords | ||
| Liquidity; Asset utilization; Debt ratio; Firm performance; Quick ratio; Total asset turnover; and Return on equity (ROE) | ||
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