The Effect of Profitability and Liquidity on Financial Performance

Authors

  • Joaninna Charissa Ayuniar Universitas Dian Nuswantoro
  • Ngurah Pandji Mertha Agung Durya Universitas Dian Nuswantoro
  • Purwantoro Universitas Dian Nuswantoro
  • Hayu Wikan Kinasih Universitas Dian Nuswantoro

DOI:

https://doi.org/10.33633/icbeat.v1i1.16677

Keywords:

Liquidity, Profitability, Financial Performance, Current Ratio, Return on Equity

Abstract

This study aims to examine the effect of Profitability and liquidity on financial performance. The findings indicate that Profitability has a significant positive effect on financial performance, while liquidity does not have a significant effect when examined individually. However, Profitability and liquidity jointly influence financial performance. These findings suggest that Profitability plays a more important role than liquidity in improving financial performance. The study implies that companies should prioritize strategies that enhance Profitability while maintaining adequate liquidity to support sustainable financial performance.

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Published

2026-09-08

How to Cite

Ayuniar, J. C., Durya, N. P. M. A., Purwantoro, & Kinasih, H. W. . (2026). The Effect of Profitability and Liquidity on Financial Performance. International Conference on Business, Economics, Accounting, and Technology, 1(1), 442–453. https://doi.org/10.33633/icbeat.v1i1.16677

Issue

Vol. 1 No. 1 (2026): 2nd International Conference on Business, Economics, Accounting, and Technology 2026 (Accounting and Finance)

Section

Articles