The Impact of Financial Flexibility on Operational Efficiency An applied study on basic materials companies listed on the Saudi financial market

Abstract

​The objective of the study was to determine the impact of financial flexibility, measured by the turnover ratio and cash flow ratio, on operational efficiency, measured by the total asset turnover ratio and fixed asset turnover ratio, for basic material manufacturing companies listed on the Saudi stock market for the period from 2015 to 2024. Based on the annual financial reports of these companies for this period, the research used descriptive and quantitative methods. After processing and analyzing the data using the SPSS statistical analysis program, the research concluded that there is a statistically significant effect of the turnover ratio on operational efficiency (total asset turnover and fixed asset turnover), and a statistically significant effect of the cash flow ratio on the fixed asset turnover ratio at a significance level of 0.10, and no statistically significant effect of the cash flow ratio on the total asset turnover ratio.