The occurrence of the COVID-19 pandemic has had a significant impact on human life in the world, including the companies' business activities. Increased business risk makes financial liquidity an essential financial policy in the face of a pandemic. This study analyzes differences in liquidity before and during the COVID-19 pandemic in manufacturing companies on the Indonesian Capital Market. There are three financial liquidity ratios tested in this research: the current ratio, the quick ratio, and cash holdings. Empirical testing of this research uses the Wilcoxon signed rank test. The empirical findings of this research have not been able to prove a difference between the current ratio and the quick ratio in the period before and during the COVID-19 pandemic. However, this study proved that there were differences in cash holdings in the period before and during the COVID-19 pandemic in the case of manufacturing companies on the Indonesian Capital Market. This research implies that manufacturing companies on the Indonesian Capital Market apply a conservative financial strategy in the face of the COVID-19 pandemic. The company adopted a policy of increasing the company's cash holdings as an effort to maintain adequate company liquidity, maintain the sustainability of business operations, and prevent bankruptcy.
The Covid-19 pandemic has significantly impacted various socio-economic aspects of Indonesian society. Tourism activities are a sector directly affected by the harmful effects of Covid-19. The implementation of restrictions on community activities to overcome the Covid-19 pandemic has made tourism business activities experience financial difficulties, leading to business bankruptcy. This study analyzes local tourism companies' profitability and cash holdings in Umbul, Madiun, and East Java before and during the Covid-19 pandemic. This study uses a descriptive qualitative approach. The research data was obtained through observation, interviews, and analysis of the company's financial data. The results of this study indicate a decrease in profitability and a decrease in cash holdings for local tourism companies in Umbul, Madiun during the Covid-19 pandemic. A decrease in profitability and a decrease in cash holdings can be interpreted as an increase in business risk leading to financial difficulties. Local tourism companies Umbul Madiun are advised to focus on the company's cash conversion cycle, more conservative accounting and business policies, and focus on activities that directly impact the number of tourist visits. This strategy is expected to increase the company's profitability, the efficiency of cash holdings management, and efforts to revive the tourism business after the pandemic conditions at the local tourism company Umbul Madiun.
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