Syntax Idea
1843-1847

The Effect of Working Capital on Return on Assets and Return on Equity

Dina Kristiana (Fakultas Ekonomi dan Bisnis Universitas Trisakti)
Reniati Karnasi (Fakultas Ekonomi dan Bisnis Universitas Trisakti)



Article Info

Publish Date
30 Nov -0001

Abstract

The purpose of this study was to determine the effect of working capital management on profitability in manufacturing companies listed on the Indonesia Stock Exchange (IDX). Working capital management is measured by accounts receivable, inventory, accounts payable, and the cash conversion cycle, while profitability is measured by return on assets and return on equity. This research is a quantitative research with a research design in the form of hypothesis testing. The analytical method in this study uses multiple regression analysis using E-views 10.0 software. The data is obtained from the financial reports of manufacturing companies that have been published and listed on the Indonesia Stock Exchange (IDX) for 2018-2022. The sample in this study was taken using a purposive sampling technique, namely 127 manufacturing companies that have been published and listed on the Indonesian Stock Exchange (IDX). The results of the study show that the variables accounts receivable and inventory have a significant negative effect on return on assets, while the account payable and cash conversion cycle variables have no effect on return on assets and return on equity.

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Journal Info

Abbrev

syntax-idea

Publisher

Subject

Aerospace Engineering Agriculture, Biological Sciences & Forestry Automotive Engineering Chemical Engineering, Chemistry & Bioengineering Computer Science & IT

Description

Syntax Idea. Jurnal Ilmiah Indonesia adalah jurnal yang diterbitkan oleh Ridwan Institute. Syntax Idea akan menerbitkan artikel-artikel ilmiah dalam cakupan bidang ilmu umum. Artikel yang dimuat adalah artikel hasil penelitian, kajian atau telaah ilmiah kritis dan komprehensif atas isu penting dan ...