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September 18, 2025Journal Research of Social Science Economics and Management0 citations

Impact of Liquidity and Solvency on Profitability in Indonesian Mining Companies

Financial Ratios and Corporate Performance: The Interaction of Liquidity, Solvency, and Profitability in Indonesian Mining Companies

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Authors

MSMuhamad Jorgi Rahmat Andri SumarlinMTMiranda Tanjung

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Overview

Panel data analysis uncovers significant negative effects of solvency ratios on profitability in mining firms, suggesting optimal capital structures are crucial.

Key Points

  • Excessive debt significantly hinders profitability in mining companies, affecting financial performance.
  • The debt-to-asset ratio shows a significant negative effect on Return on Assets in the sector.
  • Liquidity ratios exhibit no significant impact on profitability, emphasizing the importance of solvency.
  • Maintaining an optimal capital structure is vital for sustainable financial performance in capital-intensive mining.

Cite This Study

Sumarlin et al. (2025) studied this question.

synapsesocial.com/papers/68d463db31b076d99fa62d09https://doi.org/10.59141/jrssem.v5i2.1075
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