Research Article
The Effect of Working Capital Management on the Profitability of Food and Beverage Companies Listed on the Indonesia Stock Exchange for the 2020-2022 Period
@INPROCEEDINGS{10.4108/eai.7-11-2023.2342374, author={Riri Zelmiyanti and Nova Chasa Friscila Nainggolan}, title={The Effect of Working Capital Management on the Profitability of Food and Beverage Companies Listed on the Indonesia Stock Exchange for the 2020-2022 Period}, proceedings={Proceedings of the 5th International Conference on Applied Economics and Social Science, ICAESS 2023, 7 November 2023, Batam, Riau islands, Indonesia}, publisher={EAI}, proceedings_a={ICAESS}, year={2023}, month={12}, keywords={cash turnovers receivable turnover inventory turnover profitability working capital management}, doi={10.4108/eai.7-11-2023.2342374} }- Riri Zelmiyanti
Nova Chasa Friscila Nainggolan
Year: 2023
The Effect of Working Capital Management on the Profitability of Food and Beverage Companies Listed on the Indonesia Stock Exchange for the 2020-2022 Period
ICAESS
EAI
DOI: 10.4108/eai.7-11-2023.2342374
Abstract
This study looked at the relationship between working capital management component and Return on Assets (ROA) profitability in food and beverage companies listed on the Indonesia Stock Exchange (IDX) using statistical methods. Financial report data for the years 2020–2022 were used to create a purposeful sample of 20 businesses. The independent variables that make up the research variables are cash turnover (CTO), receivable turnover (RTO), and inventory turnover (ITO), with return on assets (ROA) serving as the dependent variable. Using Microsoft Office Excel and the SPSS 26 software, multiple linear regression analysis is the study approach utilized. When research findings are partially evaluated, they reveal a relationship between firm ROA and CTO, but no relationship between RTO and ITO.