THE INFLUENCE OF WORKING CAPITALAND INVENTORY TURNOVER ON COMPANY PROFITABILITY
Article Sidebar
Main Article Content
Abstract
This study aims to analyze the influence of working capital and inventory turnover on the profitability of Food & Staples Retailing and Tobacco sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the 2021-2023 period. This study uses a quantitative method with secondary data in the form of corporate financial statements. The data analysis technique used was multiple linear regression with the help of the IBM SPSS 25 program. The results show that partially, neither working capital nor inventory turnover have a significant influence on profitability. Similarly, simultaneously, working capital and inventory turnover together also did not have a significant effect on the profitability of the Food & Staples Retailing and Tobacco sub-sector companies during the 2021-2023 research period. A determination coefficient value (R Square) of 0.072 indicates that only 7,2% of the variation in profitability can be explained by working capital and inventory turnover, while the remaining 92,8% is influenced by other factors outside the model of this study. This study concludes that working capital management and inventory turnover in companies in this sub-sector have not been the main determining factors in increasing profitability.
Keywords: Working Capital; Inventory Turnover; Profitability; Food & Staples Retailing and Tobacco Companies; Indonesia Stock Exchange.
Downloads
Article Details
Section
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
How to Cite
References
Adolph, R. (2020). Inventory Turnover (pp. 1–23).
Anggraini, I. D., & Cahyono, K. E. (2021). THE EFFECT OF WORKING CAPITAL, LIQUIDITY, LEVERAGE AND ACTIVITIES ON PROFITABILITY (A STUDY ON FOOD AND BEVERAGE COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE). Journal of Management Science and Research (JIRM), 10(5), 1–23. http://jurnalmahasiswa.stiesia.ac.id/index.php/jirm/article/view/4034
Anni Melissa, S. (2024). The Effect of Working Capital and Receivables Turnover on Profitability In. Jieap), 1(2), 3046–8752. https://doi.org/10.61132/jieap.v1i2.146
Denisa Salsabila Viyanis, Adira Oktaviani, Tita Nurjanah, Khalisa Fahira, Avivah Shafa Nada, & Tri Yulaeli. (2023). Factors affecting Company Profitability: Working Capital Turnover, Cash Turnover, Inventory Turnover, Fixed Asset Turnover and Receivables Turnover. Journal of Economic and Accounting Research, 1(3), 124–143. https://doi.org/10.54066/jrea-itb.v1i3.632
Ermaya, H. N., & Novitasari, N. (2016). The Effect of Receivables Turnover and Inventory Turnover on Profitability at PT. Akasha Wira International, Tbk. (Case Study on Manufacturing Companies Listed on the Indonesia Stock Exchange in 2010 – 2014). Scientific Journal of Accounting, 7(1), 15–23.
Firastika, F., Abdul Muttalib, & Abdul Salam. (2024). The Effect of Working Capital Turnover, Receivable Turnover, and Inventory Turnover on the Profitability of Food and Beverage Companies Listed on the Indonesia Stock Exchange (IDX) for the 2018-2022 Period. International Journal of Economic Research and Financial Accounting (IJERFA), 2(4), 1175–1180. https://doi.org/10.55227/ijerfa.v2i4.178
Cashmere. (2021). No Title. 11–23.
Kusumaningati, L. D., & Sugianto, D. A. (2021). The Effect of Revenue and Cost of Revenue on Net Profit at Pt Indocement Tunggal Prakarsa Tbk in 2013-2018. Journal of Economics, Accounting and Management, 1(2), 114–127. https://journal.uniku.ac.id/index.php/jeam
Ndruru, P. H., Zebua, S., & Bawamenewi, A. (2022). Analysis of the Use of Working Capital to Increase the Profitability of KSP 3 Hililaza Branch. Journal of Accounting, Management and Economics (JAMANE), 1(2), 261–267.
Septiano, R., Maheltra, W. O., & Sari, L. (2022). The Effect of Working Capital and Liquidity on Profitability in Pharmaceutical Sub-Sector Manufacturing Companies in 2016-2020. Journal of Applied Management Science, 3(4), 388–398. https://dinastirev.org/JIMT/article/view/956/601
Setiawan, H., & Putri, M. A. (2023). The effect of cash turnover, receivables turnover and inventory turnover on profitability. Scientific Journal of Unified Accounting, 11(1), 175–186. https://doi.org/10.37641/jiakes.v11i1.1723
Www.idx.co.id. (n.d.). IDX Overview and History.
Yang, P., Di, T., Effect, B., & Bei, I. (2023). 3 1,2,3. 2(1).