The Effect of Working Capital Ratio on Profitability of Manufacturing Companies in Indonesia

DOI

10.2991/aebmr.k.200520.079How to use a DOI?

Keywords

CR, DAR, DER, ROA, ROE

Abstract

This study aims to determine the influence of work capital ratio on the level of manufacturing company profitability in Indonesia basic and chemical industry sub-sector for the period of 2012 - 2017. The type of this research was quantitative with the sampling technique used is Purposive Sampling technique while for data collection in this study carried out with documentaries sourced from financial report data reported on the Indonesia Stock Exchange. Data analysis techniques used multiple linear regression. The data analysis instrument in this study was used classic assumptions quality and hypothesis in this case using partial t test and f test simultaneous. The results of the tests conducted partially showed that CR, DAR and DER had a negative and significant effect on ROA. Whereas in the second dependent variable CR and DER which had a positive and significantly influence ROE, and, DER d had a negative and significant effect on ROE.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Rahma Yolanda Putri
AU  - Nusaiba Mirza
AU  - Wan Muhammad Atif
AU  - Isni Andriana
PY  - 2020
DA  - 2020/05/23
TI  - The Effect of Working Capital Ratio on Profitability of Manufacturing Companies in Indonesia
BT  - Proceedings of the 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019)
PB  - Atlantis Press
SP  - 472
EP  - 474
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200520.079
DO  - 10.2991/aebmr.k.200520.079
ID  - Putri2020
ER  -