The Effect of Operating Costs, Cash Flows, and Profitability on Corporate Liquidity in The Transportation and Logistics Sector (2021–2023)

Abstract

Liquidity is a crucial financial indicator, particularly for firms operating in the transportation and logistics sector, due to its “direct impact on the company’s ability to meet short-term obligations. This study aims to examine the influence of operating costs, cash flows, and profitability on the liquidity of transportation and logistics companies listed on the Indonesia Stock Exchange (IDX) for the period 2021–2023. Data were collected using a documentation technique from audited financial statements of selected companies. The data analysis method applied includes “descriptive statistics and panel data regression using EViews 12. Three model selection tests (Chow test, Hausman test, and Lagrange Multiplier test) were performed alongside classical assumption tests” such as residual normality, multicollinearity, heteroscedasticity, and autocorrelation tests. Hypothesis testing included the t-test, F-test, and coefficient of determination (R²). The results indicate that operating costs do not significantly affect liquidity, while cash flow and profitability do. Simultaneously, all three variables significantly influence the liquidity of transportation and logistics firms listed on the IDX during the observed period. Based on the analysis, it can be concluded that operating costs, cash flow, and profitability simultaneously influence the liquidity of companies in the transportation and logistics sector listed on the IDX during 2021–2023. Therefore, simultaneous increases or decreases in these variables will significantly affect liquidity levels. These three variables collectively explain 63.6% of the variation in liquidity, while the remaining 36.4% is influenced by other factors, such as inventory turnover, accounts receivable turnover, and Return on Equity (ROE). Operating Costs measured by the Operating Expenses to Operating Income (BOPO) ratio do not significantly affect the liquidity of transportation and logistics companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2023 period. (2) Cash Flow measured by the Operating Cash Flow ratio has a positive effect on the liquidity of transportation and logistics companies listed on the IDX during the 2021–2023 period. (3) Profitability measured by the Return on Assets (ROA) ratio has a negative effect on the liquidity of transportation and logistics companies listed on the IDX during the 2021–2023 period. (4) Operating costs, cash flow, and profitability collectively influence the liquidity of transportation and logistics companies listed on the IDX during the 2021–2023 period.