Research Article
Effect Of Working Capital Efficiency, Liquidity And Leverage Against Profitability
@INPROCEEDINGS{10.4108/eai.5-10-2022.2325904, author={Rika Rahmawati Sani and Vina Kholisa Dinuka}, title={Effect Of Working Capital Efficiency, Liquidity And Leverage Against Profitability }, 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={efficiency working capital liquidity leverage and profitability}, doi={10.4108/eai.5-10-2022.2325904} }- Rika Rahmawati Sani
Vina Kholisa Dinuka
Year: 2023
Effect Of Working Capital Efficiency, Liquidity And Leverage Against Profitability
ICAESS
EAI
DOI: 10.4108/eai.5-10-2022.2325904
Abstract
The purpose of this study is to determine how leverage, liquidity, and working capital efficiency affect the company's profitability. This population is used to search for reports on infrastructure businesses listed on the Indonesia Stock Exchange from 2017 to 2021 in this study using a quantitative methodology. A total of 185 samples, or 37 companies, were collected using a purposive sampling strategy. To access secondary data in the form of financial reports for businesses, data collection is done by collecting data that has been archived in the database. Statistical descriptive analysis, estimating model selection (Chow, Hausman, and range multiplier test), classical assumption test (multicollinearity, heteroscedasticity, and panel data regression), and hypothesis testing is used to analyze the data (coefficient of determination test and partial test). The results of this study indicate that Working Capital Efficiency (Working Capital Turnover) and Liquidity (Current Ratio) have no significant positive effect on Profitability (Return On Investment). This research also found that leverage (debt to equity) had a significant negative effect on profitability (return on investment).