Liquidity, Profitability, and Operating Cash Flow: Their Association with Financial Performance in Indonesia's Food and Beverage Subsector

Andre Arsy  Subagja; Hilda Salman  Said

doi:10.58524/9w8fp582

Authors

Andre Arsy Subagja Universitas Telkom, Indonesia https://orcid.org/0009-0000-0173-598X
Hilda Salman Said Universitas Telkom, Indonesia https://orcid.org/0000-0001-7159-369X

DOI:

https://doi.org/10.58524/9w8fp582

Keywords:

Financial Performance, Liquidity, Profitability, Operating Cash Flow

Abstract

This study investigates how liquidity, profitability, and operating cash flow relate to the financial performance of food and beverage subsector firms on the Indonesia Stock Exchange (IDX-IC) between 2019 and 2024. A purposive sampling procedure yielded a balanced panel of 52 firms (312 firm-year observations), analyzed in EViews 13 through panel regression with two-way clustered standard errors to correct for heteroskedasticity, serial correlation, and cross-sectional dependence. Model-selection tests pointed to the common effect model (CEM) for the main specification, with fixed effect (FEM) and random effect (REM) models serving as robustness checks. Jointly, the three variables are associated with financial performance (Adjusted R² = 0.543; F = 124.19, p < 0.001). At the partial level, only profitability (ROE) shows a positive link, significant at the 10% threshold (β = 0.151, p = 0.085); liquidity and operating cash flow show no significant association. The profitability association held up directionally, and mostly stayed significant, across robustness checks using an alternative profitability measure (gross profit margin), winsorized data, and alternative panel specifications. Overall, profit-generating capacity tracks financial performance more consistently than short-term liquidity or cash generation in this subsector. The study adds subsector-specific evidence on which financial indicators matter most for food and beverage firms, and points company management toward prioritizing profitability, alongside broader indicators such as gross profit margin, without neglecting liquidity and cash flow discipline.

References

Anggara, I. F., & Andhaniwati, E. (2023). Pengaruh Likuiditas, Leverage, dan Profitabilitas terhadap Kinerja Keuangan PT. Semen Indonesia (Persero) Tbk. Ekonomis: Journal of Economics and Business, 7(1), 366–371. https://doi.org/10.33087/ekonomis.v7i1.780

Arum, R. (2026, May 12). Klasifikasi IDX-IC: Pengertian, Perbedaan dengan JASICA, Daftar Sektor, dan Contoh Saham. Investasiku.Id. https://www.investasiku.id/eduvest/investasi/klasifikasi-idx-ic

Astuti, F. A., & Cahyono, Y. T. (2024). Analisis Laporan Keuangan Sebelum, Selama, dan Sesudah Pandemi Covid-19 untuk Mengukur Kinerja Keuangan (Studi Empiris pada Perusahaan Sub-Sektor Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia Tahun 2019-2021). Management Studies and Entrepreneurship Journal, 5(1), 2984–2992. https://doi.org/10.37385/msej.v5i1.4424

Basuki, A. T., & Prawoto, N. (2016). Analisis Regresi dalam Penelitian Ekonomi dan Bisnis: Dilengkapi Aplikasi SPSS dan EViews (1st ed.). Rajawali Pers.

BPS. (2024). Produk Domestik Bruto Indonesia Triwulanan 2020–2024.

Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management (15th ed.). Cengage Learning.

Burke, Q. L., & Wieland, M. M. (2017). Value Relevance of Banks Cash Flows from Operations. Advances in Accounting, 39, 60–78. https://doi.org/10.1016/j.adiac.2017.08.002

Bursa Efek Indonesia. (2020). Panduan IDX Industrial Classification Versi 1.0 (Desember 2020). https://www.idx.co.id/id

Cangombe, E. L., Almeida, L. G., & Tavares, F. O. (2025). Determinants of Banking Profitability in Angola: A Panel Data Analysis with Dynamic GMM Estimation. Risks, 13(7), 1–21. https://doi.org/10.3390/risks13070123

Caronge, E., Raznilawati, & Mursida. (2022). Pengaruh Return on Asset dan Return on Equity terhadap Distress pada Perusahaan Manufaktur Sub-Sektor Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia Periode 2014-2017. Jurnal Penelitian Humano, 13(2), 15–26. https://doi.org/10.33387/humano.v13i1.4263

Connelly, B. L., Certo, S. T., Ireland, R. D., & Reutzel, C. R. (2011). Signaling Theory: A Review and Assessment. Journal of Management, 37(1), 39–67. https://doi.org/10.1177/0149206310388419

Dirmansyah, N. O., Syalsabila, L., & Lestari, H. S. (2022). Pengaruh Likuiditas terhadap Kinerja Perusahaan pada Perusahaan yang Terdaftar di BEI. Jurnal Ekonomi, 27(1), 49–63. https://doi.org/10.24912/je.v27i1.854

Gappmi. (2023, April 3). Siaran Pers GAPMMI Bersama Ditjen Industri Agro Kementrian Perindustrian Partisipasi Industri Makanan Minuman Indonesia di Pameran Hannover Messe 2023. Gappmi.Id. https://gapmmi.id/article/read/7795/siaran-pers

García-Teruel, P. J., & Martínez-Solano, P. (2007). Effects of Working Capital Management on SME Profitability. International Journal of Managerial Finance, 3(2), 164–177. https://doi.org/10.1108/17439130710738718

Gunawan, C., Sudarsi, S., & Aini, N. (2022). Pengaruh Likuiditas, Struktur Modal, Ukuran Perusahaan dan Risiko Operasional Perusahaan terhadap Kinerja Keuangan Perusahaan pada Industri Manufaktur yang Terdaftar di Bursa Efek Indonesia pada Tahun 2018-2020. Dinamika Akuntansi, Keuangan Dan Perbankan, 11(1), 31–40. https://doi.org/10.35315/dakp.v11i1.8951

Handayani, R. S., Nurfitriani, & Huda, M. M. (2024). Analisis Laporan Arus Kas dalam Menilai Kinerja Keuangan pada PT Bumi Serpong Damai Tbk Tahun 2021-2023. Jurnal Akuntansi Dan Keuangan, 13(1), 26–32. https://doi.org/10.32520/jak.v13i1.3623

Hapsari, D. W., Budiharjo, R., Pratomo, D., & Yazid, H. (2025). Profitability in Linking Governance Structure and Firm Value. Jurnal Akuntansi, 29(2), 206–224. https://doi.org/10.24912/ja.v29i2.2421

Hartomo, G. (2021, January 27). BEI Beberkan Perbedaan IDX-IC dengan JASICA. Okezone.Com. https://economy.okezone.com/read/2021/01/27/278/2351802/bei-beberkan-perbedaan-idx-ic-dengan-jasica

Jiharka, A. (2026, February 9). Masa Ujung Tanduk 70 Emiten, BEI Sebut Delisting Lumrah bagi Mereka. Emitennews.Com. https://emitennews.com/news/masa-ujung-tanduk-70-emiten-bei-sebut-delisting-lumrah-bagi-mereka

Khoza, F. (2025). The Impact of Liquidity and Leverage on the Financial Performance of the Johannesburg Stock Exchange-Listed Consumer Goods Firms. Journal of Risk and Financial Management, 18(9), 1–24. https://doi.org/10.3390/jrfm18090510

Kroes, J., & Manikas, A. (2014). Cash Flow Management and Manufacturing Firm Financial Performance: a Longitudinal Perspective. International Journal of Production Economics, 148, 37–50. https://doi.org/10.1016/j.ijpe.2013.11.008

Li, J., & Terdpaopong, K. (2025). Factors Influencing the Financial Performance Strategy of Healthcare Listed Companies During the Covid-19 Pandemic. Corporate and Business Strategy Review, 6(3), 64–73. https://doi.org/10.22495/cbsrv6i3art6

Liaturahmi, N., Wirahendri, & Zahrah. (2025). Determinan Tingkat Pengembalian Investasi pada Perusahaan Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia. Jurnal Aplikasi Perpajakan, 6(1), 331–346. https://doi.org/10.29303/jap.v6i1.135

Majidah, M., & Aryanty, N. (2022). Financial Performance: Environmental Performance, Green Accounting, Green Intellectual Capital, Green Product, & Risk Management. Proceedings of the 5th European International Conference on Industrial Engineering and Operations Management, 2928–2938. https://doi.org/10.46254/EU05.20220569

Nathania, C., Wijaya, S., Hutagalung, G., & Simorangkir, E. N. (2021). The Influence of Company Size and Leverage on Tax Avoidance with Profitability as Intervening Variable at Mining Company Listed in Indonesia Stock Exchange Period 2016-2018. International Journal of Business, Economics and Law, 24(2), 132–140.

Ningsih, A. M., Hardiwinoto, Ridwan, M., & Putri, A. P. R. Z. (2023). Analisis Rasio Likuiditas, Solvabilitas, Aktivitas, dan Profitabilitas untuk Menilai Kinerja Keuangan pada Perusahaan Food and Beverage Yang Terdaftar di Bursa Efek Indonesia Tahun 2019-2021. Kompartemen: Jurnal Ilmiah Akuntansi, 21(1), 94–110. https://doi.org/10.30595/kompartemen.v21i1.15829

Noury, B., Hammami, H., Ousama, A. A., & Zeitun, R. (2020). The Prediction of Future Cash Flows Based on Operating Cash Flows, Earnings and Accruals in the French Context. Journal of Behavioral and Experimental Finance, 28, 1–11. https://doi.org/10.1016/j.jbef.2020.100414

Nur, S., Suciyanti, V. N., Winarti, A., & Azmi, Z. (2024). Pemanfaatan Teori Signal dalam Bidang Akuntansi: Literatur Review. Economics, Business and Management Science Journal, 4(2), 55–65. https://doi.org/10.34007/ebmsj.v4i2.564

Diaz, J. F., & Pandey, R. (2019). Factors Affecting Return on Assets of US Technology and Financial Corporations. Jurnal Manajemen Dan Kewirausahaan, 21(2), 134–144. https://doi.org/10.9744/jmk.21.2.134-144

Pojanavatee, S., & Kingshott, R. (2025). Liquidity and Leverage on the Financial Performance of Savings and Credit Cooperatives in the Emerging Thailand Market. Journal of Indian Business Research, 17(1), 66–82. https://doi.org/10.1108/JIBR-10-2024-0221

Pratiwi, A. D., & Sasongko, N. (2023). Pengaruh Likuiditas, Operating Capacity, Sales Growth, Operating Cash Flow dan Kepemilikan Institusional terhadap Financial Distress (Studi Empiris pada Perusahaan Manufaktur Sektor Barang Konsumsi yang Terdaftar di Bursa Efek Indonesia Tahun 2019-2022). Management Studies and Entrepreneurship Journal, 4(6), 8878–8890. https://doi.org/10.37385/msej.v4i6.3653

Rafael, F. M., & Fatihat, G. G. (2023). Analisis Likuiditas, Solvabilitas, dan Profitabilitas terhadap Kinerja Keuangan Perusahaan Bank Central Asia (BCA) Periode 2017-2021. Cakrawala Repositori IMWI, 6(1), 641–647. https://doi.org/10.52851/cakrawala.v6i1.256

Ross, S. A. (1977). The Determination of Financial Structure: The Incentive Signaling Approach. The Bell Journal of Economics, 8(1), 23–40. https://doi.org/10.2307/3003485

Sarnawiah, Alam, S., Kadir, N., & Reni, A. (2022). The Influence of Operating Cash Flows and Financing Cash Flows on Financial Performance Through Earnings Quality as an Intervening Variable at The Indonesian Telecommunications Company Listed on The Indonesia Stock Exchange. Journal of Research in Business and Management, 10(12), 141–152.

Sembiring, S., Shalini, W., Mahendra, A., & Parhusip, P. T. (2024). Pengaruh Ukuran Perusahaan, Struktur Modal, dan Likuiditas terhadap Kinerja Keuangan pada Perusahaan Pertambangan yang Terdaftar di BEI Periode 2020-2022. Jurnal Riset Akuntansi Dan Keuangan, 10(2), 158–171.

Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010

Tempo.co. (2024, September 4). Industri Makanan dan Minuman Tumbuh 5,53 Persen, Beri Sumbangan Terbesar ke PDB. Tempo.Co. https://www.tempo.co/ekonomi/industri-makanan-dan-minuman-tumbuh-5-53-persen-beri-sumbangan-terbesar-ke-pdb--12737

Timorria, I. F. (2022, May 4). Penyebab di Balik Laba Bersih Mayora Indah (MYOR) Turun 62 Persen. Bisnis.Com. https://market.bisnis.com/read/20220504/192/1529813/penyebab-di-balik-laba-bersih-mayora-indah-myor-turun-62-persen

Wati, Y. (2025, March 26). Catatkan Rugi Bersih Tinggi, Indofood Hadapi Tantangan Berat. Kabarbursa.Com. https://www.kabarbursa.com/market-hari-ini/catatkan-rugi-bersih-tinggi-indofood-hadapi-tantangan-berat

Zamojska, A., Mosionek-Schweda, M., Tłoczyński, D., & Diakowska, K. (2025). Crisis, Support, and Structural Risk: Assessing the Financial Impact of Covid-19 on Polish Regional Airports. Risks, 13(9), 1–24. https://doi.org/10.3390/risks13090175