Working Capital Management Relationship to Profitability of Plastic and Packaging Sub-Sector Companies on the Indonesia Stock Exchange
Working Capital Management Relationship to Profitability of Plastic and Packaging Sub-Sector Companies on the Indonesia Stock Exchange
DOI:
https://doi.org/10.54443/jaruda.v1i1.8Keywords:
working capital management, profitabilitasAbstract
The purpose of this study isto determine the influence of working capital management consisting of variables Cash Turnover, Inventory Turnover, Working Capital Turnover affecting profitability in Plastic and Packaging Sub-Sector companies listed on the IDX. The research approach uses quantitative descriptive methods. The population that will be used is the financial report data of plastic and packaging sub-sector companies listed on the Indonesia Stock Exchange with the purposive sampling sampling method with the criteria of plastic and packaging sub-sector companies listed on the Indonesia Stock Exchange which have complete financial statements in the period 2011 - 2020 so that the data used are 60 financial statement data. Data analysis uses multiple linear regression. The results showed that thereis a significant positive influence of cash turnover on profitability, meaning that the higher the cash turnover, the higher the profitability, thehigher the cash turnover will be better because this means that the higher the efficiency of cash use and the greater the profit obtained. There is a significant positive effect of inventory turnover on profitability, meaning that the higher the inventory turnover, the higher the profitability, the higher the inventory turnover, the higher the profit obtained. There is no effect of capital turnover on profitability, which means that the rise and fall of capital turnover does not affect the rise and fall of profitability.
References
Eksandy, A., & Dewi, V. M. (2019). Effect of Working Capital Turnover, Receivables Turnover and Cash Turnover on Company Profitability (Study on Infrastructure Sector Construction Companies on the Indonesia Stock Exchange for the Period 2012–2015). Jurnal Dinamika UMT, 2(2), 1-14.
Fuady, R. T., & Rahmawati, I. (2018). Effect of Cash Turnover, Receivables Turnover, and Inventory Turnover on Profitability. Jurnal Ilmiah Binaniaga Vol, 14(01).
https://industri.kontan.co.id/news/tahun-2022-bisnis-kemasan-plastik-diyakini-akan-terus-tumbuh
Kasmir. (2014). Financial Statement Analysis. Jakarta: Rajawali-Pers
Kurniawan, I. S., Pattisahusiwa, S., & Pratama, S. B. (2022). The Effect Of Sales, Cash Turnover, Receivables Turnover And Inventory Turnover On Profitability. JURNAL MANAJEMEN, 14(2).
Panigrahi, A. K. (2017). Working Capital Management Efficiency Of Indian Cement Industry. NMIMS Journal Of Economics And Public Policy, 11(January), 8–28.
Parlina, N. D. (2017). The Effect of Working Capital Turnover on Profitability Through Receivables Turnover as an Intervening Variable. Jurnal Inspirasi Bisnis dan Manajemen, 1(2), 159-166.
Reeve M, J.(2012). Introduction to Accounting. Salemba Empat:Jakarta.
Safitri, H., & Utami, M. P. D. (2017). The Effect of Working Capital Management on Profitability in Shares of LQ45 Index Companies. Jurnal Fakultas Ekonomi dan Bisnis, 13(2).
Saputra, S. H. A. (2017). The Effect of Working Capital Turnover on Profitability in Automotive Companies. E-journal Administrasi Bisnis 5(4): 1215-1228.
Sartono, A. (2012). Financial Management Theory and Applications. Yogyakarta: M.B.A BPFE
Sufiana,N., Purnawati, N.K,. (2013). Effect of Cash Turnover, Receivables Turnover and Inventory Turnover on Profitability. Jurna Ilmiah Universitas Udayana Volume 2.
Suminar, M. T. (2015). The effect of inventory turnover, receivables turnover and cash turnover on profitability in consumer goods industry sector companies listed on the IDX for the 2008-2013 period. Journal Of Accounting, 1(1).
Sundari, C. N., & Salim, U. (2012). The Effect of Working Capital Management on the Profitability of Study Companies on Pharmaceutical Companies Listed on the Indonesia Stock Exchange (IDX) in 2008-2012. Jurnal Ilmiah Mahasiswa FEB, 1(2).
Yulandreano, E., Atahau, A. D. R., & Sakti, I. M. (2020). Does Profitability Mediate the Effect of Working Capital Management on Company Value. AFRE Accounting and Financial Review, 3(2), 103-114.
