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Oct 13, 2025 by windailys.com 145 views

Analysis of the Liquidity Relationship to Profitability in PT (Persero) Port of Indonesia I Medan

Introduction

The relationship between liquidity and profitability is a crucial aspect of financial management in any organization. Liquidity refers to a company's ability to fulfill its short-term obligations, while profitability measures the company's ability to generate profits from its investments. In this study, we aim to explore the relationship between liquidity measured through the Current Ratio, Cash Ratio, and Acid Test Ratio to the ratio of profitability, specifically Return on Investment (ROI) at PT (Persero) Pelabuhan Indonesia Medan.

Methodology

To analyze the relationship between liquidity and profitability, we used the Rank Spearman correlation analysis method with a significance level of α = 5%. The data used is secondary data in the form of annual financial statements for six years, starting from 2000 to 2005, which is processed using SPSS version 12.0 software.

Results

The results of the study showed that the three liquidity variables - Current Ratio, Cash Ratio, and Acid Test Ratio - did not have a significant relationship with profitability variables namely ROI. This finding is supported by the Spearman Correlation Coefficient (RCitung) coefficient value that is smaller than the critical value (RTable) and a significance level greater than 0.05. In addition, the t-test results show that (tcount) is also smaller than (ttable), which further strengthens the conclusion that there is no significant relationship between the ratio of liquidity and profitability in the company.

Discussion

The lack of significant relationship between liquidity and profitability in this study may seem counterintuitive, as good liquidity is often considered a good financial health indicator. However, there are several factors that might affect these results, including:

External factors: market conditions, competition, and economic policies that apply can affect profitability, regardless of the company's liquidity position. For example, if the market is sluggish, even though the company has high liquidity, ROI may remain low.
Operational Management: Management strategy and operational efficiency also contribute to profitability. Companies with less effective management may have difficulty in generating profits, even though the liquidity is high.
Long-term investment: higher liquidity may be used for long-term investments that have not provided immediate yields. This can affect ROI in the short term, but can potentially provide future benefits.

Conclusion

By understanding the relationship between liquidity and profitability, companies can take more appropriate steps in financial management and business strategies. This finding can be an important reference for the management of PT (Persero) Port of Indonesia I Medan to consider other aspects besides liquidity in an effort to increase company profitability. Further research needs to be done to identify the factors that affect the relationship between liquidity and profitability more deeply.

Recommendations

Based on the findings of this study, we recommend that the management of PT (Persero) Port of Indonesia I Medan should consider the following:

Improve operational management: the company should focus on improving its operational efficiency and management strategy to increase profitability.
Diversify investments: the company should consider diversifying its investments to reduce the risk of long-term investments and increase the potential for future benefits.
Monitor market conditions: the company should closely monitor market conditions and adjust its business strategies accordingly to ensure that it remains competitive.

Limitations

This study has several limitations, including:

Limited data: the study only used secondary data from six years, which may not be representative of the company's overall financial performance.
Methodological limitations: the study used a correlation analysis method, which may not capture the complex relationships between liquidity and profitability.

Future Research Directions

Further research is needed to identify the factors that affect the relationship between liquidity and profitability more deeply. Some potential research directions include:

Exploring the impact of external factors: researchers could investigate the impact of external factors, such as market conditions and economic policies, on the relationship between liquidity and profitability.
Analyzing the role of operational management: researchers could examine the role of operational management in affecting the relationship between liquidity and profitability.
Investigating the effects of long-term investment: researchers could investigate the effects of long-term investment on the relationship between liquidity and profitability.

By understanding the relationship between liquidity and profitability, companies can take more informed decisions in financial management and business strategies. This study provides a valuable reference for the management of PT (Persero) Port of Indonesia I Medan to consider other aspects besides liquidity in an effort to increase company profitability.
Frequently Asked Questions (FAQs) about the Analysis of the Liquidity Relationship to Profitability in PT (Persero) Port of Indonesia I Medan

Q: What is the main objective of this study?

A: The main objective of this study is to explore the relationship between liquidity measured through the Current Ratio, Cash Ratio, and Acid Test Ratio to the ratio of profitability, specifically Return on Investment (ROI) at PT (Persero) Pelabuhan Indonesia Medan.

Q: What methods were used to analyze the relationship between liquidity and profitability?

A: The authors used the Rank Spearman correlation analysis method with a significance level of α = 5% to analyze the relationship between liquidity and profitability.

Q: What were the results of the study?

A: The results of the study showed that the three liquidity variables - Current Ratio, Cash Ratio, and Acid Test Ratio - did not have a significant relationship with profitability variables namely ROI.

Q: What are the implications of the study's findings?

A: The study's findings suggest that good liquidity is not always a guarantee of high profitability. Companies should consider other factors, such as operational management and long-term investment, in addition to liquidity when making financial decisions.

Q: What are some potential factors that may affect the relationship between liquidity and profitability?

A: Some potential factors that may affect the relationship between liquidity and profitability include:

External factors, such as market conditions and economic policies
Operational management, including management strategy and operational efficiency
Long-term investment, including the use of liquidity for investments that have not provided immediate yields

Q: What are the limitations of this study?

A: This study has several limitations, including:

Limited data, which only includes secondary data from six years
Methodological limitations, including the use of a correlation analysis method that may not capture the complex relationships between liquidity and profitability

Q: What are some potential research directions for future studies?

A: Some potential research directions for future studies include:

Exploring the impact of external factors on the relationship between liquidity and profitability
Analyzing the role of operational management in affecting the relationship between liquidity and profitability
Investigating the effects of long-term investment on the relationship between liquidity and profitability

Q: What are the implications of this study for the management of PT (Persero) Port of Indonesia I Medan?

A: The study's findings suggest that the management of PT (Persero) Port of Indonesia I Medan should consider other aspects besides liquidity in an effort to increase company profitability. This may include improving operational management, diversifying investments, and monitoring market conditions.

Q: What are the potential benefits of this study for the business community?

A: The study's findings can provide valuable insights for businesses looking to improve their financial management and business strategies. By understanding the relationship between liquidity and profitability, businesses can make more informed decisions and improve their overall performance.

Q: What are the potential applications of this study in the field of finance?

A: The study's findings can be applied in various areas of finance, including financial management, investment analysis, and corporate finance. The study's results can provide insights for financial analysts, investors, and corporate managers looking to improve their understanding of the relationship between liquidity and profitability.