The Effect of Cash Flow and Receivables Turnover on the Liquidity of Basic Material Companies Listed on the Indonesia Stock Exchange
Keywords:
Cash Flow, Accounts Receivable Turnover, LiquidityAbstract
This study aims to analyze the effect of cash flow and accounts receivable turnover on liquidity in Basic Materials companies listed on the Indonesia Stock Exchange (IDX) for the 2020–2024 period. A quantitative approach was used with secondary data in the form of annual financial reports from 10 sample companies over five years. Data analysis was performed using multiple linear regression using SPSS. The results show that cash flow has a positive and significant effect on liquidity, meaning that the greater the operating cash flow, the greater the company's ability to meet short-term obligations. Similarly, accounts receivable turnover has a positive and significant effect on liquidity, indicating that efficient collection of receivables strengthens the company's cash position. Simultaneously, both variables significantly influence liquidity, with a coefficient of determination (R²) of 0.643. This study emphasizes the importance of cash flow and accounts receivable management in maintaining a company's financial stability. Keywords: Intrinsic motivation, Performance.
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