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Authors: Ghazali Syamni ;  Ichsan ;  Rasyimah ;  Aiyub and  Husaini

Affiliation: Universitas Malikussaleh, Indonesia

Keyword(s): The working capital, profitability, turnover, IDX

Abstract: The purpose of this study is to examine effect of working capital on profitability of food and beverage companies in Indonesia Stock Exchange. The data used in this study is secondary data from the documentation of financial statements of food and beverages and the like companies during the period 2012-2016. This study differs from previous research since it applies all the variables of profitability ratios generally applied. The results of the study find that independent variables of cash turnover, receivable turnover and inventory turnoverall have their significant effect on the profitability ratios of the company including ratios of return on asset, return on equity, net profit margin and gross profit margin. The model chosen in this research is Random Effect Model. Statistically this study finds that the working capital turnover negatively affect the return on equity partially or completely. However, working capital turnover significantly affects overall ROA, NPM and GPM. Partial ly, turnover circulation affects return on assets and receivable turnover affects gross profit margin. Both turnovers affect net profit margin. Lastly, no cash turnover affects the profitability of food companies and beverages in the Indonesia Stock Exchange (More)

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Paper citation in several formats:
Syamni, G.; Ichsan.; Rasyimah.; Aiyub. and Husaini. (2022). Profitability of Food & Beverages Industry Sector in IDX: The Impact of Working Capital Turnover. In Proceedings of the International Conference on Natural Resources and Sustainable Development - ICNRSD; ISBN 978-989-758-543-2, SciTePress, pages 153-157. DOI: 10.5220/0009899400002480

@conference{icnrsd22,
author={Ghazali Syamni. and Ichsan. and Rasyimah. and Aiyub. and Husaini.},
title={Profitability of Food & Beverages Industry Sector in IDX: The Impact of Working Capital Turnover},
booktitle={Proceedings of the International Conference on Natural Resources and Sustainable Development - ICNRSD},
year={2022},
pages={153-157},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009899400002480},
isbn={978-989-758-543-2},
}

TY - CONF

JO - Proceedings of the International Conference on Natural Resources and Sustainable Development - ICNRSD
TI - Profitability of Food & Beverages Industry Sector in IDX: The Impact of Working Capital Turnover
SN - 978-989-758-543-2
AU - Syamni, G.
AU - Ichsan.
AU - Rasyimah.
AU - Aiyub.
AU - Husaini.
PY - 2022
SP - 153
EP - 157
DO - 10.5220/0009899400002480
PB - SciTePress