International Journal of Accounting & Finance in Asia Pasific
Vol 2, No 1 (2019): International Journal of Accounting & Finance in Asia Pasific (IJAFAP)

Are the Profitability of Companies Influenced by Working Capital and Liquidity?

Ramon Arthur Ferry Tumiwa (Universitas Negeri Manado)
Nova Christian Mamuaya (Universitas Negeri Manado)



Article Info

Publish Date
20 Feb 2019

Abstract

The purpose of our study is to examine and analyze: (1) the effect of working capital on profitability, (2) the effect of liquidity on profitability, and (3) the effect of working capital and liquidity simultaneously to profitability. This research was conducted at the ceramics, glass, and porcelain of manufacturing companies that listed on the Indonesia Stock Exchange (IDX) 2012-2016. The companies analyzed amounted to 6 companies determined based on sampling criteria. The analysis method used is panel data analysis by using Eviews 10 programming computer. The results of this study found that working capital has an insignificant relationship with profitability. The liquidity has an insignificant with profitability. The working capital and liquidity have no significant effect on profitability, simultaneous. Keywords: Working Capital, Liquidity, Profitability, Manufacturing Companies, Indonesia Stock Exchange

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Journal Info

Abbrev

IJAFAP

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

IJAFAP aims to feature narrative, theoretical, and empirical-based research articles within the abovementioned fields. The journal welcomes articles relating to the current issues of financial decision making as well as its impact on society. IJAFAP carries out the mission to feature narrative, ...