Yanuar Pribadi
Jurusan Administrasi Publik, Fakultas Ilmu Administrasi, Universitas Brawijaya, Malang

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Journal : Journal of Economics, Business,

EFFICIENCY OF WORKING CAPITAL ON COMPANY PROFITABILITY IN GENERATING ROA (CASE STUDIES IN CV. TOOLS BOX IN SURABAYA) Sutanto, J.E.; Pribadi, Yanuar
Journal of Economics, Business, and Accountancy Ventura Vol. 15 No. 2 (2012): August 2012
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v15i2.81

Abstract

The purpose of this study is to investigate the influence of the working capital efficiency ratiotoward profitability. The working capital efficiency ratios used in this study are a currentratio, a receivable turnover, and a net working capital turnover. On the other hand, corporateprofitability used in this study is measured by return on assets (ROA). This research isconducted as the case study in a company, namely CV. Tools Box. The data are the monthlyfinancial reports from January 2008 until December 2009. For data analysis, the researcherused a multiple regression analysis, t-test, F-test, coefficient of determination, partial correlation,and classical assumptions. The result of this study indicates that only partially networking capital turnover has a significant effect on ROA. In Addition, the current ratio, receivableturnover, and net working capital turnover simultaneously has a significant effect onROA.