ANALYSIS OF THE EFFECT OF WORKING CAPITAL ON PROFITABILITY IN FOOD AND BAVERAGES COMPANIES LISTED ON IDX IN 2019-2022

Abstract

Developments in the business world in all sectors continue to experience competition,
including Food and Baverages companies. The company continues to strive for working
capital to obtain maximum profits. The aim of this research is to determine the effect of
working capital as interpreted by cash turnover, accounts receivable turnover, inventory
turnover and total asset turnover on profitability. This research uses descriptive
quantitative research methods with multiple linear regression analysis. The data used in
the research is secondary data in the form of company financial reports. The population
in this study were all companies in the Food and Baverages sector listed on the Indonesia
Stock Exchange (BEI) from 2019 - 2022, where there were 28 companies so that 112 data
were collected. The sample used in this research used a purposive sampling method which
was based on considering the value of ROA positive, so that 93 data were obtained which
were used as research samples. The results of this research indicate that cash turnover
has a positive effect on profitability. Receivables turnover has a negative effect on
profitability. Inventory turnover has a positive effect on profitability. Total asset turnover
has no effect on profitability.