Analysis of the impact of liquidity on the profitability in the medium and large meat processing enterprises in the Republic of Serbia

Abstract

Liquidity and profitability are closely related economic categories. The issue of constant balancing between liquidity and profitability, in theory known as "liquidity-profitability trade off", has been the subject of significant interest of the scientific community. There is no consensus on the direction of the impact of liquidity on profitability, but the existence of this impact in practice is confirmed. The aim of this paper is to investigate the impact of liquidity on profitability, based on selected traditional financial indicators, for medium and large enterprises in the group of processing and preserving of meat and meat products of the Republic of Serbia, in the period 2016 to 2019. The findings of a multiple linear regression analysis, show that the ratio of long-term sources and fixed assets in the group of processing and preserving of meat and meat products makes a statistically significant contribution predicting the return on assets.

Influence of liquidity and solvency on profitability of agroindustrial companies in the conditions of Covid-19

“…441-453), Belgrade sectors, which show that the impact of the pandemic did not affect all sub-sectors equally. The recent analysis of the meat processing activity in the Republic of Serbia shows a positive impact of the solvency ratio on the ROA which is in line with the findings of this paper (Čavlin, Vapa Tankosić, Miletić, Ivaniš, 2021). The COVID-19 pandemic is a completely new type of crisis, and it is not possible to expect that the problems that have affected the economy and society as a whole will be known and solved in a short period of time.…”

Looking beyond the Numbers: Determinants of Financial Performance of Portuguese Wine Firms

“…In a study conducted in the Republic of Serbia, the authors analyzed the impact of traditional liquidity indicators on the profitability in the meat processing industry using data from official financial reports of the firms for the period from 2016 to 2019 and concluded that liquidity has no effects on profitability of those firms [14]. Similar results were obtained by Pervan and Višić in the Croatian manufacturing industry for the period from 2002 to 2010 [15].…”

El uso del crédito fiscal y su efecto en la liquidez de una empresa comercializadora de fertilizantes, Trujillo, 2021

“…El objetivo específico 2 fue analizar la liquidez de la empresa comercializadora de fertilizantes, año 2021. Según Cavlin et al, (2021), los autores entienden a la liquidez como la capacidad de una empresa para pagar de manera adecuada sus obligaciones de tal forma que pueda mantener estable sus operaciones en un futuro predecible. En el presente trabajo de investigación se usó tres ratios financieros para analizar la liquidez de la empresa, con los siguientes resultados: Liquidez total o corriente se obtuvo como resultado 1.6181 y dicha liquidez no es la adecuada lo cual es un riesgo para la empresa, pues de requerirse la cancelación de sus deudas a corto plazo la empresa no contaría con la liquidez necesaria para realizar dicho pago y a la vez seguir operando de manera estable.…”

“…Dicha evaluación depende de su liquidez y de su pasivo financiero a corto plazo. Cavlin et al, (2021), los autores entienden a la liquidez como la capacidad de una empresa para pagar de manera adecuada sus obligaciones de tal forma que pueda mantener estable sus operaciones en un futuro predecible. También la presenta como medida básica de sostenibilidad y flexibilidad operativa, así como también como una medida tradicional y primaria de la supervivencia o desaparición de una empresa.…”