Proceedings of the 3rd International Conference on Advance & Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia

Research Article

The Impact Of Working Capital Turnover, Inventory Turnover, Cash Turnover, And Company Size On Profitability.

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  • @INPROCEEDINGS{10.4108/eai.20-6-2020.2300616,
        author={Vernanda  Claudia and Herlina  Lusmeida},
        title={The Impact Of Working Capital Turnover, Inventory Turnover, Cash Turnover, And Company Size On Profitability. },
        proceedings={Proceedings of the 3rd International Conference on Advance \& Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia},
        publisher={EAI},
        proceedings_a={ICASI},
        year={2020},
        month={9},
        keywords={profitability working capital company size profitability},
        doi={10.4108/eai.20-6-2020.2300616}
    }
    
  • Vernanda Claudia
    Herlina Lusmeida
    Year: 2020
    The Impact Of Working Capital Turnover, Inventory Turnover, Cash Turnover, And Company Size On Profitability.
    ICASI
    EAI
    DOI: 10.4108/eai.20-6-2020.2300616
Vernanda Claudia1,*, Herlina Lusmeida2
  • 1: Alumni of University of Pelita Harapan
  • 2: University of Pelita Harapan
*Contact email: vernanda.claudia@gmail.com

Abstract

The purpose of this research is to examine the effect of working capital management on profitability. The variables used in this research are divided into dependent and independent variables. The dependent variable is profitability and the independent variables are working capital turnover, cash turnover, inventory turnover, and company size. This research was conducted at manufacturing companies listed on Indonesia Stock Exchange period 2013-2016 which amounted to 376 samples during 4 years. The determination of the number of samples in this study using purposive sampling method and data analysis technique used is multiple linear regression and samples tested using T-Test and F-Test. The results of this research showed that the variables of inventory turnover and company’s size have a positive effect and significant to profitability, while working capital turnover and cash turnover have negative influence to profitability.