العلاقة بين الملاءة المالية و الربحية في البنوك التجارية السعودية

Abstract EN

The aim of Research was to study the relationship between financial solvency and profitability in the Saudi commercial banks.

The sample of the study included six Saudi commercial banks during the period 2010-2016.

The focus was on a range of financial ratios.

A series of statistics analysis indicators were used to test the hypothesis.

A number of results were found: there are statistically significant relationship between solvency variables and return on equity except for equity to deposits and equity to assets, and between solvency variables and return on assets except equity to deposits and equity to assets, and between solvency variables and return on deposits except for equity to deposits and equity to assets, and solvency variables and earning per share except equity to deposits and equity to assets.

The study also indicating a long term trade-off relation between profitability and liquidity in general.

A number of recommendations related to the research findings were made