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URI for this communityhttps://rps.wku.edu.et/handle/987654321/1
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Item TREND ANALYSIS OF LIQUIDITY IN ESHET MICROFINANCE INSTITUTION(Wolkite University, 2019-06) MEKIDES KASSAHUNThe choice of trend analysis of liquidity is one of the most important strategic financial decisions of firms. Since financing decisions influence profitability and hence firm’s value, this study examines the impact of trend analysis liquidity on Sheet microfinances of core business operations of micro finances in Ethiopia. In order to meet the objectives of this study a quantitative data methodology was employed. The data were obtained from the annual reports of Eshet microfinance institution for period of2010 to 2014.Of this, constitute deposit and the remaining was non-deposit liabilities. This has reaffirmed the fact that finances are highly levered institutions. The findings revealed that trend analysis as measured by total debt to asset had statistically significant negative impact, whereas inflation had statistically significant positive impact on liquidity of core business operations of micro finances. Moreover, GDP also had statistically significant and positive relationship with liquidity. However, growth found to have statistically insignificant impact on micro finance liquidity. Therefore,Eshet micro finance shall give due consideration to manage their debts properly, mobilize deposit sufficiently, increase loan advances, spread, and size in their financing decisions. Furthermore, banks also advise to reduce non-deposit debt financing and raise equity financing so that to keep costs of financing at minimum level and hence optimize profitability and the value of micro finances. Future researchers also recommended assessing the overall performance of trend analysis liquidity and other micro finances sectors in the area of this research