The effect of liquidity management on the performance of companies in the manufacturing industry
This thesis contains of two main theory to be explored, which are liquidity management and company performance. This study compares the liquidity ratios with profitability ratios, which are the indicators of company performance, to find out the correlation between the liquidity management and company performance. The samples used for this study are the financial statement from 2006 to 2010 of 4 sub- sectors of manufacturing industry, which each sector contains of five companies to measure the liquidity management and the profitability. Windows SPSS statistic and microsoft excel are used to do the statistical calculation. Each sub-sector has different results and it could be concluded that only the inventory turnover ratio has a significant correlation towards all profitability ratios.
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