THE INFLUENCE OF CASH TURNOVER, RECEIVABLES TURNOVER AND INVENTORY TURNOVER ON THE ECONOMIC PROFITABILITY OF REGISTERED PHARMACEUTICAL COMPANIES ON THE INDONESIAN STOCK EXCHANGE PERIOD 2017-2021

This study examines the effect of cash turnover, receivable turnover, and inventory turnover on the economic rentability of pharmaceutical companies listed on the Indonesia Stock Exchange during 2017-2021. This study uses secondary data, and the samples are 8 pharmaceutical companies listed on the Indonesia Stock Exchange during 2017-2021. The sampling technique used purposive sampling technique. The data analysis method used is the panel data regression analysis method. The results indicate that cash turnover negative and no significantly affects economic rentability, receivable turnover negative and significantly affect economic rentability, and inventory turnover positively and significantly affecnteconomic rentabilityof pharmaceutical companies listed on the Indonesia Stock Exchange for 2017-2021.

Another factor that affects the value of the company is inventory turnover. Inventory according to Inventory is the main element of working capital in the form of an asset that is always in a state of rotation, which is constantly changing. Merchandise inventory is goods owned by the company for resale (Nuraini, 2013). Inventory turnover is the ratio used to measure how many times the funds invested in this inventory rotate in a period. The higher the inventory turnover ratio indicates that the working capital required in inventory is lower, to achieve a high turnover rate, regular planning and monitoring must be carried out (Ratnasari 2021).
The capital that is taken into account to calculate economic profitability is only working capital within the company (operating capital assets). Thus, the capital invested in securities is not taken into account to calculate economic profitability, only profits originating from the company's operations, namely operating profit (net rating income or profit margin). Profitability is an indicator that describes the extent to which a company can generate profits by using capital, sales, and investment properly. -competition to get a large profit by increasing the profit target every year. Profitability describes the company's ability to earn profits with all the company's capabilities and resources, namely sales activities, cash, capital, number of employees, and so on (Ariesta, 2021).
In this study, the object of research is pharmaceutical companies listed on the Indonesia Stock Exchange for the 2017-2021 period. Pharmaceutical companies were chosen as samples in this study because this sector is one of the main sectors supporting national manufacturing and economic growth in 2021. Pharmaceutical companies reflect national economic and business growth/development, besides that pharmaceutical companies are a sector that has high business complexity. Pharmaceuticals is an industry that has very good prospects in the future and is an industry that is able to develop until now pharmaceutical companies have an important role in reform in the health sector.
The pharmaceutical industry is one of the economic sectors that has been able to record positive growth even though in general the Indonesian economy experienced an economic contraction in the second quarter of 2020, experiencing negative growth of 5.32% on an annual basis or year on year (yoy). The Ministry of Industry noted the performance of several manufacturing industry sectors which were still growing positively. This sector includes the chemical, pharmaceutical and traditional medicine industries with a growth of around 8.65%, higher than the first quarter of 2020 which grew 5.59%. According to the Minister of Industry, Agus Gumiwang Karta, the growth of the chemical, pharmaceutical and traditional medicine industry was inseparable from the increasing demand for medicines and health supplements during the pandemic (IDXchanel.com).
Basically, the higher the economic profitability, the better the company's performance and will influence investors' decisions to invest in the company. The following table shows the average value of pharmaceutical companies during the 2017-2021 period. Based on Table 1. The average economic profitability of pharmaceutical companies for the 2017-2018 period, it can be seen that there has been an increase in economic profitability of pharmaceutical companies in 2017-2021. It can be seen that from 2017 to 2018 pharmaceutical companies have experienced an average increase in their economic profitability, which means that there has been an increase in the good health of the pharmaceutical company's economy.

RESEARCH METHODS
The data analysis method used in this study is a quantitative method using panel data regression analysis. According to Sugiyono (2019) panel data is a combination of time series data and cross section

Journal of Management Research, Utility Finance and Digital Assets
data. The data analysis used to solve the problems in this study is panel data regression analysis with the help of Eviews 9. The research data used is in the form of Secondary data, namely annual reports published by pharmaceutical sub-sector companies on the IDX in the 2017-2021 period of 8 companies using the purposive sampling method.
The panel data regression method is used through three approaches, namely, the common effect least squares approach, the second fixed effect approach and the third the random effect approach. Furthermore, the data is also tested classical assumptions. The panel data regression analysis equation model is as follows: =Cash Turnover X2 =Accounts Receivable Turnover X3 =Inventory Turnover β1β2β3 =Regression Coefficient ε =Standard Error The variables used in the research are: a. Economic profitability is the ability to generate profits from the total capital, both foreign and own capital, which is used to generate profits.

b.
Cash turnover is the cash period that rotates from when cash is used until it returns to cash to pay off costs incurred in connection with sales. The cash turnover rate is a company benchmark in converting its current assets into cash back through sales (Pratama, 2019). Cash turnover can be measured using the cash turnover formula. c.
Receivables turnover is the company's bills to other parties arising from the sale of products or services on credit that have not been paid in full. Trade receivables in normal assets will be paid off in less than one year, so they are classified as current assets.

d.
Inventory turnover is a measure of the number of times inventory is sold in a period of time such as a year and is calculated to see if a business has excess inventory in comparison to its sales level. Y = a + β₁X₁ + β₂X₂ + β₃X₃ + β₄X₄ + e

Journal of Management Research, Utility Finance and Digital Assets
Radja Publika https://jaruda.org The framework and hypotheses in the research are as follows:

Determination of Panel Data Estimation Techniques
In the panel data, there are three estimation models, namely Common Effect or Pooled Least Square, Fixed Effect and Random Effect which will be tested which is the best model to use in this study. The test was carried out by testing the Chow Test, and the Hausman Test.
The Chow test was conducted to test which model was selected between the Common Effect and the Fixed Effect. To see which model is the best of the two models, it can be seen from the Probability Cross-Section F value.

Table 2. Chow test results
Based on Table 2 above, it is known that the probability value is 0.000. Because the probability value is 0.0000 <0.05, the estimation model used is the Fixed Effect Model (FEM).  Based on table 3 above, it can be seen that the profitability value is 0.2030, which is above the error value, which is 0.05. So it can be concluded that based on the Hausman test the best model in this study is the Random Effect Model (REM).

Table 4. Panel Data Regression Estimation Results with Random Effect Models
Based on Table 4 above, the regression equation results can be obtained as follows: From the above equation, it can be seen that the value of the constant profitability is (-1795,517), which means that if cash turnover, accounts receivable turnover, and inventory turnover have a value (value of 0), then the profitability value remains at (-1795,517).

Test Parsial (Uji t) Effect of cash turnover on economic profitability
The results of the hypothesis show that the tcount of cash turnover is -0.477929 and the significance value is 0.6359, while the significant level ttable value used is 5% with degrees of freedom df1 = 50-4 is 1.68830. So it can be concluded that tcount (-0.477929) < ttable (1.68830) and a significant value (0.6359) > 0.05, then H₁ is rejected, which means that cash turnover has a negative and insignificant effect on economic profitability of pharmaceutical companies listed on the Indonesia Stock Exchange.
This finding is in line with research conducted (Eko, 2021) which says that cash turnover is not significant for economic profitability. But these findings contradict the results of research by (Agustini, Bagia, Yudiaatmaja, 2018) which says that cash turnover has a positive and significant effect on economic profitability. This finding identifies that the size of a cash turnover does not affect and predict the size of a company's economic profitability. Cash turnover shows how far the ability or level of efficiency achieved by the company in managing available cash to achieve company goals. The results show that there is no influence between the level of cash turnover on economic profitability due to the inefficient use of cash in pharmaceutical companies.

Effect of accounts receivable turnover on economic profitability
The results of the hypothesis show that the tcount of cash turnover is -2.494555 and the significance value is 0.0178, while the significant level ttable value used is 5% with degrees of freedom df1 = 50 -4 is 1.68830. So it can be concluded that tcount (-2.494555) < ttable (1.68830) and a significance value (0.0178) <0.05, then H₁ is accepted, which means that receivables turnover has a negative and significant effect on economic profitability of pharmaceutical companies listed on the Indonesia Stock Exchange.
This finding is in line with research conducted (Agustini, Bagia, and Yudiaatmaja, 2018) which says that receivables turnover has a negative and significant effect on economic profitability, but these findings contradict the results of research by (Suriani, 2021) which says that receivables turnover has a positive effect and significant to economic profitability.
Receivables turnover plays a role in reducing economic profitability of pharmaceutical companies listed on the IDX, receivables turnover affects economic profitability because the lower the receivables turnover rate, the lower the profitability turnover rate of a company, so if receivables turnover decreases in a pharmaceutical company it is due to bills slowing down so that it makes the old company to convert accounts receivable into cash back so that it can reduce the company's economic profitability.

Effect of inventory turnover on economic profitability
The results of the hypothesis show that the tcount of inventory turnover is 2.566014 and the significant value is 0.0150 while the ttable value of significance level used is 5% with degrees of freedom df1 = 50-4 is 1.68830. So it can be concluded that tcount (2.566014) > ttable (1.68830) and a significance value (0.0150) <0.05, then H₁ is accepted, which means that inventory turnover has a positive and significant effect on economic profitability of pharmaceutical companies listed on the Indonesia Stock Exchange.
This finding is in line with research conducted by (Aldi Nur Eza, 2019) which says that inventory turnover has a positive and significant effect on economic profitability, but these findings contradict the results of research by (Halimatus, 2020) which says that inventory turnover has a negative effect and does not significantly to economic profitability. This finding identifies that if inventory turnover increases, economic profitability will also increase. The economic profitability obtained by the company due to weak sales and excessive inventories resulting in a risk of losses which will result in an accumulated inventory investment balance, increased risks due to reduced prices and quality and increased other costs such as storage costs and security costs. But if the amount of inventory is small, it will cause sales to fall so that it can hinder the company's operational activities in obtaining economic profitability.

Test Simultan (Uji F)
Based on table 4.7 Panel Data Regression Estimation with the Random Effect Model, it shows that the calculated F value is (4.217475) > the F table value of 2.87 and the significance probability value of F calculated is 0.012473 <0.05, then the hypothesis is accepted. So it can be concluded that jointly the independent variables, namely cash turnover, accounts receivable turnover, inventory turnover have a positive and significant effect on the dependent variable, namely the economic profitability of pharmaceutical companies listed on the Indonesia Stock Exchange for the 2017-2021 period.

CONCLUSION
Cash turnover has a negative but not significant effect on economic profitability of pharmaceutical companies listed on the IDX, Receivables turnover has a negative and significant effect on economic profitability of pharmaceutical companies listed on the IDX, Inventory turnover has a positive and significant effect on economic profitability of pharmaceutical companies listed on the IDX.