Gema Wiralodra
Vol. 14 No. 3 (2023): Gema Wiralodra

Implications of working capital management and operational continuity on company profitability in the technology sector idxtechno 2022

Tirza Angel Geralyn (Universitas Advent Indonesia, Indonesia)
Richard Friendly Simbolon (Universitas Advent Indonesia, Indonesia)



Article Info

Publish Date
31 Oct 2023

Abstract

Profitability is a metric to gauge a company's ability to generate satisfactory returns on its invested assets, sales, and equity. This research seeks to explore how the management of working capital and the sustained operation of companies impact their profitability within the IDXTECHNO sector over three years, from 2020 to 2022. Operating capital management is defined by three key indicators: the cash turnover ratio (CTR), inventory turnover ratio (ITR), and accounts receivable turnover ratio (ARTR). Operational continuity is assessed through the cash conversion cycle (CCC), and profitability, in this study, is represented by return on assets (ROA). A purposive sampling method was used to select seventeen sample companies, and multiple linear regression analysis was employed. The results indicate a significant influence of working capital management and operational continuity on profitability.

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Journal Info

Abbrev

gemawiralodra

Publisher

Subject

Other

Description

Gema Wiralodra adalah jurnal yang dikelola oleh LPPM Universitas Wiralodra. Gema Wiralodra telah ada sejak tahun 2005 dan merupakan jurnal pertama di Universitas Wiralodra. Gema Wiralodra merupakan jurnal berkala ilmiah yang diterbitkan dua kali setahun (bulan April dan bulan Oktober) yang ...