Research Article
The Influence of Working Capital Management on the Profitability of Manufacturing Companies
@INPROCEEDINGS{10.4108/eai.5-10-2022.2325874, author={Seto Sulaksono Adi Wibowo and Rizky Aulia Ryalvin}, title={The Influence of Working Capital Management on the Profitability of Manufacturing Companies}, proceedings={Proceedings of the 4th International Conference on Applied Economics and Social Science, ICAESS 2022, 5 October 2022, Batam, Riau Islands, Indonesia}, publisher={EAI}, proceedings_a={ICAESS}, year={2023}, month={1}, keywords={cash turnover account receivable turnover inventory turnover working capital turnover profitability roa}, doi={10.4108/eai.5-10-2022.2325874} }- Seto Sulaksono Adi Wibowo
Rizky Aulia Ryalvin
Year: 2023
The Influence of Working Capital Management on the Profitability of Manufacturing Companies
ICAESS
EAI
DOI: 10.4108/eai.5-10-2022.2325874
Abstract
This study aims to determine the effect of cash turnover, account receivable turnover, inventory turnover, and working capital turnover on company profitability. The population in this study is manufacturing companies which are listed in the Indonesia Stock Exchange for the 2016 – 2020 period. The number of samples used is 38 companies which are selected by using purposive sampling technique. The data analysis technique which used is double regression analysis by using SPSS 20 program. This study can beneficial for manufacturing companies as reference and consideration in planning, making decisions, and evaluating business activities related to working capital management. As for readers, this research can add insight into working capital management and company profitability.The result of this study is showing that inventory turnover has significant effect on company profitability, while cash turnover, account receivable turnover, and working capital turnover has no significant effect on company profitability.