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The Impact of Efficiency of Working Capital Management on Company Profitability Wahyuningsih, Mutia; Sihombing, Pardomuan; Indira Puspa Gustiah
International Journal of Entrepreneurship and Business  Management Vol. 3 No. 1 (2024)
Publisher : Asosiasi Dosen Peneliti Ilmu Ekonomi dan Bisnis Indonesia (ADPEBI)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54099/ijebm.v3i1.972

Abstract

This research aims to analyze the influence of working capital management efficiency (Working Capital Turnover) on Return On Total Assets and the role of Diversification Strategy as a moderating variable on the influence of Working Capital Turnover on Return On Total Assets. The research population is green industry award-winning companies listed on the Indonesia Stock Exchange for the 2019-2021 period. Data obtained from financial reports (Audited). The analysis was carried out using a panel data regression approach with moderating variables used to test the hypotheses in this research. Purpose – The research results show that Working Capital Turnover has a significant negative effect on Return On Total Assets and Diversification Strategy as a moderating variable in the relationship between Working Capital Turnover and Return On Total Assets has a significant positive effect.