ProBisnis : Jurnal Manajemen
Vol. 14 No. 5 (2023): October: Management Science

The Effect of Debt and Working Capital on Profitability (Case Study on Retail Trade Sub-Sector Companies Listed on The Indonesian Stock Exchange Period 2020-2022)

Sayyid Abdul Ghany (Mahaputra Muhammad Yamin Solok University)
Seflidiana Roza (Mahaputra Muhammad Yamin Solok University)
Esi Sriyanti (Mahaputra Muhammad Yamin Solok University)



Article Info

Publish Date
31 Oct 2023

Abstract

This study aims to determine the effect of debt and working capital on the profitability of retail trade sub-sector companies listed on the Indonesian stock exchange for the 2020-2022 period. The financial ratios studied are Debt and Working Capital. The population in this research is retail trading sub-sector companies on the Indonesian Stock Exchange for the 2020-2022 period. The sample consisted of 24 companies that published complete financial reports for 3 years (2020-2022) using the purposive sampling method, namely a sample selection technique using certain criteria that the researcher had determined for the object under study. Data collection was carried out using documentation methods, literature study and accessing the web and related sites. Data analysis was carried out using multiple linear regression analysis. The research results show that the debt variable has a partially significant effect on profitability. Meanwhile, the working capital variable has a partially significant effect on profitability. Simultaneously, it was found that debt and working capital jointly influence profitability with R2 0.171 (17.1%). Keywords: Debt, Working Capital, Profitability

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Journal Info

Abbrev

ProBisnis

Publisher

Subject

Humanities Computer Science & IT Economics, Econometrics & Finance Industrial & Manufacturing Engineering Social Sciences

Description

ProBisnis: The Management Journal was previously published in print, then in 2020 it was changed to online. This journal has ISSN: 2086-7654( Print) and ISSN: 2808-7240(Online). The scope of this journal is Economics, Management, Marketing, Strategic Management, Entrepreneurship, Leadership ...