Effect of the liquidity, leverage and company size on company of profitability towards food and beverage sector in Malaysia / Mohd Hashim Jeman

The purpose of the study was to establish the relationship between liquidity, leverage and company size on profitability of companies listed at the Bursa Malaysia towards the food and beverage sector. Specifically the study sought to establish the effect of liquidity, leverage and company size on profitability of companies listed Bursa Malaysia. This study was carried out on all the 30 listed companies between 2013 until 2017 in the sector of food and beverage in Malaysia. The leverage was measured using debt equity ratio, liquidity is current ratio, and while for company size is total asset where for this 3 variable is measure by independent variable. Profitability was a dependent variable which measure by return on assets. The variables were tested using stata se analysis. Descriptive statistics were computed for the listed companies and the main characteristics of the study variables. The findings revealed that the relationship between leverage and profitability was positively significant relationship. There was a insignificant relationship between liquidity and profitability while the relation between company size and profitability also show the insignificant relationship. The study not only contributes to understanding the link between liquidity, leverage, company size and profitability of the firm but at the same time confirms the findings of previous studies that have found a significant link between liquidity, leverage, company size and profitability.