The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa

Volume: 7 Number: 2 June 1, 2017
  • Abdul Aziz A. Abdul Rahman
International Journal of Economics and Financial Issues Cover
International Journal of Economics and Financial Issues
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The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa

Abstract

This study aims to examine the relationship between solvency ratios and profitability ratios. The study was conducted on the food industrial companies listed in Amman Bursa during the period of 2012-2014. The results revealed no relationship between the following solvency ratios (debt/asset ratio, debt/equity ratio, long-term debt/assets ratio, long-term debt/equity ratio, and interest coverage) and the following profitability ratios (gross profit margin and operating cash flow margin). The results show negative relationship between both ratios of solvency (debt/asset ratio, debt/equity ratio) and the following profitability ratios (operating profit margin [OPM], net profit margin [NPM] and return on assets [ROA]). There are no relationships between the remaining of the solvency ratios (long-term debt ratios/assets, long-term debt ratios/equity, and interest coverage) and the following profitability ratios (OPM, NPM, and ROAs)

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Primary Language

English

Subjects

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Journal Section

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Authors

Abdul Aziz A. Abdul Rahman This is me

Publication Date

June 1, 2017

Submission Date

June 1, 2017

Acceptance Date

-

Published in Issue

Year 2017 Volume: 7 Number: 2

IZ

https://izlik.org/JA57EM68MC

Cite

RIS / Bibtex
APA
Rahman, A. A. A. A. (2017). The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa. International Journal of Economics and Financial Issues, 7(2), 86-93. https://izlik.org/JA57EM68MC
AMA
1.Rahman AAAA. The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa. IJEFI. 2017;7(2):86-93. https://izlik.org/JA57EM68MC
Chicago
Rahman, Abdul Aziz A. Abdul. 2017. “The Relationship Between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies Listed in Amman Bursa”. International Journal of Economics and Financial Issues 7 (2): 86-93. https://izlik.org/JA57EM68MC.
EndNote
Rahman AAAA (June 1, 2017) The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa. International Journal of Economics and Financial Issues 7 2 86–93.
IEEE
[1]A. A. A. A. Rahman, “The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa”, IJEFI, vol. 7, no. 2, pp. 86–93, June 2017, [Online]. Available: https://izlik.org/JA57EM68MC
ISNAD
Rahman, Abdul Aziz A. Abdul. “The Relationship Between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies Listed in Amman Bursa”. International Journal of Economics and Financial Issues 7/2 (June 1, 2017): 86-93. https://izlik.org/JA57EM68MC.
JAMA
1.Rahman AAAA. The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa. IJEFI. 2017;7:86–93.
MLA
Rahman, Abdul Aziz A. Abdul. “The Relationship Between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies Listed in Amman Bursa”. International Journal of Economics and Financial Issues, vol. 7, no. 2, June 2017, pp. 86-93, https://izlik.org/JA57EM68MC.
Vancouver
1.Abdul Aziz A. Abdul Rahman. The Relationship between Solvency Ratios and Profitability Ratios: Analytical Study in Food Industrial Companies listed in Amman Bursa. IJEFI [Internet]. 2017 Jun. 1;7(2):86-93. Available from: https://izlik.org/JA57EM68MC