The Effect of Cash Turnover, Receivables Turnover, Inventory Turnover on Profitability in Primary Consumer Goods Industry Companies IDX

Safitri, Desak Ayu Kutha Mas and Suandi, I Ketut and Suardani, Anak Agung Putri (2022) The Effect of Cash Turnover, Receivables Turnover, Inventory Turnover on Profitability in Primary Consumer Goods Industry Companies IDX. Repositori Politeknik Negeri Bali.

	Text (Artikel) RAMA_62301_1815644071_artikel.pdf - Accepted Version Available under License Creative Commons Attribution Non-commercial Share Alike. Download (178kB)
	Text (Surat Pernyataan Bebas Plagiarisme) RAMA_62301_1815644071_pernyataan.pdf - Supplemental Material Available under License Creative Commons Attribution Non-commercial Share Alike. Download (1MB)

Abstract

The increase in the working capital component must be balanced with an increase in company profits, but the reality shows something different. Current study was purposed to investigate the role of three working capital components namely cash turnover, account receivable turnover, and inventory turnover on profitability (ROA) partially and simultaneously in primary consumer goods industrial companies on the IDX. Through a purposive sampling technique, a sample of 77 primary consumer goods industrial companies was obtained on the IDX for the 2019-2021 period. The data used is secondary data in the form of companies’ annual reports. The data was analyzed through multiple linear regression approach using the IBM SPSS Statistic 26 program. The findings of this study indicate that all three working capital elements contribute a significant influence on company’s profitability both partially and simultaneously. These three determinants affect the company's profitability by 15.3%, while 84.7% is influenced by other determinants.

Actions (login required)

View Item