The Effect of Working Capital, Liquidity, Solvency on Net Profit: a Case in Kosovo
(Pages 1157-1162)Mentor Gashi1,*, Merita Muharremi2,* and Ramadan Gashi3
1Lecturer University “Ukshin Hoti” Prizren, Kosovo.
2Lecturer Public University “Kadri Zeka” Gjilan, Kosovo.
3Auditor, Kosovo National Audit Office.
DOI: https://doi.org/10.55365/1923.x2023.21.128
Abstract:
The purpose of this study was to examine the significance of the effect of working capital efficiency, liquidity and solvency on amount of net profit. In this study, the dependent variable is Net Profit, denoted (Y), and the independent variables are: Working capital (X1), Liquidity (X2) and Solvency (X3). This research is quantitative study, where are used secondary data, which collected data from published annual financial reports, for period 2017-2021, from 30 different companies in Kosovo. The statistical data analysis is made by correlation coefficient and linear regression. The results in this study is found that working capital has significantly positive effect on net profit of company, liquidity does not affect net profit of company and solvency by debt to assets ratio does not affect net profit of the company.
Keywords:
Net profit, Solvency, Liquidity, Working capital, company, accounting.
How to Cite:
Mentor Gashi, Merita Muharremi and Ramadan Gashi. The Effect of Working Capital, Liquidity, Solvency on Net Profit: a Case in Kosovo. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a128/
Licensee REF Press This is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, provided the work is properly cited.