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273424

liquidity, asset utilization, debt ratio and firm performance: Evidence from Egypt

Article

Last updated: 29 Dec 2024

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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)

Authors

First Name

TareK

Last Name

Ismail

MiddleName

Hassaneen

Affiliation

Department Of Accounting Cairo University, Cairo, Egypt

Email

t.hassaneen@foc.cu.edu.eg

City

cairo

Orcid

0000-0001-9258-4282

First Name

Moahmed

Last Name

El-Deeb

MiddleName

Samy

Affiliation

Department Of Accounting October University for Modern Sciences and Arts, Egypt

Email

msamy@msa.edu.eg

City

-

Orcid

0000-0003-4703-1050

First Name

Rana

Last Name

Rezk

MiddleName

Ahmed

Affiliation

October University for Modern Sciences and Arts, Egypt

Email

rarezk@msa.edu.eg

City

cairo

Orcid

0000-0001-6289-0414

First Name

Anas

Last Name

Hemat

MiddleName

-

Affiliation

October University for Modern Sciences and Arts, Egypt

Email

anas.hemat@msa.edu.eg

City

-

Orcid

0000-0002-3630-9144

Volume

1

Article Issue

1

Related Issue

38122

Issue Date

2022-08-01

Receive Date

2022-12-10

Publish Date

2022-08-01

Page Start

20

Page End

51

Print ISSN

2974-3028

Online ISSN

2974-3036

Article File

MSAMSJ_Volume 1_Issue 1_Pages 20-51.pdf

PDF . 432.4kB

Link

https://msamsj.journals.ekb.eg/article_273424.html

Detail API

https://msamsj.journals.ekb.eg/service?article_code=273424

Order

273,424

Type

Original Article

Type Code

2,535

Publication Type

Journal

Publication Title

MSA-Management Sciences Journal

Publication Link

https://msamsj.journals.ekb.eg/

MainTitle

liquidity, asset utilization, debt ratio and firm performance: Evidence from Egypt

Details

Type

Article

Created At

23 Jan 2023