Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa

Volume: 6 Number: 2 April 1, 2016
  • Omar Durrah
  • Abdul Aziz Abdul Rahman
  • Syed Ahsan Jamil
  • Nour Aldeen Ghafeer
International Journal of Economics and Financial Issues Cover
International Journal of Economics and Financial Issues
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Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa

Abstract

The study aims to examine the relationship between liquidity ratios and indicators of financial performance (profitability ratios) in the food industrial companies listed in Amman Bursa during the period (2012-2014). The study sample included (8) industrial companies which operate in the field of food listed in Amman bursa. The results showed no relationship between all liquidity ratios and the gross profit margin, while there is a weak positive relationship between the current ratio and each of the operating profit margins and the net profit margin, as the study pointed to the existence of a positive relationship between (quick ratios, defensive interval ratio) and operating cash flow margin. There is a positive relationship between liquidity ratios (current ratio, quick ratio, cash ratio) and return on assets.

Keywords

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Omar Durrah This is me

Abdul Aziz Abdul Rahman This is me

Syed Ahsan Jamil This is me

Nour Aldeen Ghafeer This is me

Publication Date

April 1, 2016

Submission Date

April 1, 2016

Acceptance Date

-

Published in Issue

Year 2016 Volume: 6 Number: 2

IZ

https://izlik.org/JA43LX36HY

Cite

RIS / Bibtex
APA
Durrah, O., Rahman, A. A. A., Jamil, S. A., & Ghafeer, N. A. (2016). Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa. International Journal of Economics and Financial Issues, 6(2), 435-441. https://izlik.org/JA43LX36HY
AMA
1.Durrah O, Rahman AAA, Jamil SA, Ghafeer NA. Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa. IJEFI. 2016;6(2):435-441. https://izlik.org/JA43LX36HY
Chicago
Durrah, Omar, Abdul Aziz Abdul Rahman, Syed Ahsan Jamil, and Nour Aldeen Ghafeer. 2016. “Exploring the Relationship Between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa”. International Journal of Economics and Financial Issues 6 (2): 435-41. https://izlik.org/JA43LX36HY.
EndNote
Durrah O, Rahman AAA, Jamil SA, Ghafeer NA (April 1, 2016) Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa. International Journal of Economics and Financial Issues 6 2 435–441.
IEEE
[1]O. Durrah, A. A. A. Rahman, S. A. Jamil, and N. A. Ghafeer, “Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa”, IJEFI, vol. 6, no. 2, pp. 435–441, Apr. 2016, [Online]. Available: https://izlik.org/JA43LX36HY
ISNAD
Durrah, Omar - Rahman, Abdul Aziz Abdul - Jamil, Syed Ahsan - Ghafeer, Nour Aldeen. “Exploring the Relationship Between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa”. International Journal of Economics and Financial Issues 6/2 (April 1, 2016): 435-441. https://izlik.org/JA43LX36HY.
JAMA
1.Durrah O, Rahman AAA, Jamil SA, Ghafeer NA. Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa. IJEFI. 2016;6:435–441.
MLA
Durrah, Omar, et al. “Exploring the Relationship Between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa”. International Journal of Economics and Financial Issues, vol. 6, no. 2, Apr. 2016, pp. 435-41, https://izlik.org/JA43LX36HY.
Vancouver
1.Omar Durrah, Abdul Aziz Abdul Rahman, Syed Ahsan Jamil, Nour Aldeen Ghafeer. Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa. IJEFI [Internet]. 2016 Apr. 1;6(2):435-41. Available from: https://izlik.org/JA43LX36HY