The Effect of Working Capital Turnover, Accounts Receivable Turnover and Inventory Turnover on Profitability Levels on the Indonesia Stock Exchange 2015-2019

Abstract

This study aims to determine the effect of working capital turnover, turnover of willingness, and receivables turnover on the level of profitability of trading sub-sector companies listed on the Indonesia Stock Exchange. Working capital turnover (X1) has a probability value (sig). of 0.0006> 0.05 and has a regression coefficient of -3.140 which means that working capital turnover (X1) partially has a negative and significant effect on the profitability of ROA (Y) in retail trading sub-sector companies on the Indonesia Stock Exchange (IDX). 2015 – 2019. Accounts receivable turnover (X2) has a probability value (sig) of 0.000 <0.05 and has a regression coefficient of 20.406 which means that receivables turnover (X2) partially has a positive and significant effect on the profitability of ROA (Y) in the company retail trading sub-sector on the Indonesia Stock Exchange. Simultaneously working capital turnover (X1) and receivables turnover (X2) has a probability (sig) of 0.000> 0.05 and shows a value of F 308.105> 19.43 which means that simultaneously the independent variables (working capital turnover and receivables turnover) have a positive and significant influence on the dependent variable (ROA profitability). This shows that the two independent variables influence profitability.