Revue des Etudes Economiques Approfondies
Volume 5, Numéro 1, Pages 69-81
2021-03-09

An Evaluation Of Liquidity And Profitability Of Non-financial Entities In Algeria

Authors : Bougoffa Mouhyddine . Korichi Kheyreddine .

Abstract

Profitability and liquidity are considered to be the most important issues in corporate finance, in this study we investigate the effect of profitability, capital structure, and firm size on liquidity, and at the same time, we test the impact of these variables on profitability, among a sample of 25 Algerian companies from 2013 to 2018, collected from the database of the National Center of the Trade Register (CNRC), via their online platform called "Sidjilkom". relying on the SPSS 21 with the application of the Multiple Linear Regression analysis. We have concluded that, on the one hand, profitability affects negatively liquidity. Whilst, leverage and firm size have a positive relationship with liquidity. On the other hand, we have concluded that liquidity positively impacts profitability. However, there is a negative influence of debt and firm size on the profitability.

Keywords

liquidity ; profitability ; capital structure ; company ; Algeria