أثر الرفع المالي على الربحية : دراسة تطبيقية على قطاع النقل السعودي

Abstract EN

This study aimed to know the effect of financial leverage on the profitability of the Saudi joint stock companies listed in the transportation sector.

The study used three indicators to measure financial leverage (total assets to equity, total debt to total assets, long ¬term debt to equity) as independent variables, and a dependent variable to measure profitability represented in return on assets.

The study sample consisted of (5) transportation companies during the period from 2014 - 2018.

The study used the financial analysis to study the companies' situation, in addition to the simple and multiple regression analysis to test the hypotheses.

The results showed a statistically significant relationship between financial leverage and profitability in Saudi transport companies.

Based on these results, the study recommended that attention be paid to using financial indicators because of their feasibility in assessing and clarifying the company's position.

Expanding the scope of the study to include other sectors listed in the Saudi stock market.