The Impact of Activity Ratios on Change in Earnings (Case Study:Based on Jordanian Food Companies)
Assistant Professor, Accounting Department, Faculty of Business, Applied Science Private University, MEU Research Unit, Middle East University, Amman, Jordan,
Mohammad Alnaimat
Assistant professor, Faculty of business, Department of accounting , Alzaytoonah university of Jordan
Amjad Al-Shorafa
Assistant Professor, Department of Accounting College of Business Administration , Majmaah University , Al- Majmaah 11952,Saudi Arabia,
Majed Qabajeh
Assistant professor, Accounting Department, Faculty of Business, Applied Science Private University, MEU Research Unit, Middle East University, Amman, Jordan
Mohammad Alqsass
lecturer, Accounting Department, Faculty of Business, Applied Science Private University, MEU Research Unit, Middle East University, Amman, Jordan,
Ahmad Bani Ahmad
Department of Finance and accounting science , Faculty of Business, Middle East University, Applied Science Research Center, Applied Science Private University, Jordan
Abstract
The purpose of this article is to assess whether the change in earnings of Jordanian food companies influenced by activity ratios evaluated TATR and FATR. Prior authors rely on various metrics to estimate activity ratios, however, relied on two indicators in this article (total assets turnover ratio and fixed assets turnover ratio) as independent variables and used (change in earnings) as dependent variable. To fulfill this objective, the study's population comprises the food companies sector. The sample, on the other hand, comprises 7 firms that are actively operating in Jordan and are listed on the Amman Stock Exchange. This sample is considered as panel data, encompassing the period from 2015 to 2019, the data for this study was acquired from the annual financial reports submitted by these firms. The results reached reveal that a positive influence of TATR and FATR on change in earnings achieved by Jordanian food companies. The results outlined above are in line with the current literature reviews integrated into this study, providing further support for the theoretical discussions on the interaction between TATR and FATR, as well as their impact on earnings changes.