THE EFFECT OF TURNOVER ON PROFITABILITY IN MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE
DOI:
https://doi.org/10.31942/jafin.v1i1.7006Abstract
This research aims to determine the effect of cash turnover, receivables, and supply on profitability in manufacturing companies. The independent variables used are Cash Turnover, Receivables Turnover, and Inventory Turnover. While the dependent variable used is Profitability. The population in this study is the financial statements of manufacturing companies totaling 120 companies over a period of six years listed on the Indonesia Stock Exchange (IDX) in 201 7-2020. Sampling is carried out by the proposive sampling method. The number of companies sampled in this study was 30 manufacturing companies. The analysis method of this study uses Linear Ordinary Least Square Regression (OLS) with a statistical analysis tool, namely the Eviews 8.0 program. The results of this study show that parally cash turnover has a significant effect on Return On Investment (ROI), receivables turnover has a significant effect on Return On Investment (ROI), and inventory turnover is not significant to Return On Investment (ROI). In terms of stimulant, the independent variables of cash turnover, receivables turnover, and inventory turnover together (simultaneously) significantly affect the Return On Investment (ROI) at α 1%.
References
Bilklif Djodjobo, Marjam Mangantar, Ferdy Roring (2017). Effect of Cash Turnover and Receivables Turnover on Performance at Regional Development Banks in Indonesia for the Period 2013 – 2016. EMBA Journal Vol.5 No.3 September 2017, Pp.3190-3199
Caroline Nyambura Mwaura. 2017. The Effect Of Inventory Turnover On The Financial Performance Of Medium And Large Retail Supermarkets In Kenya. Master Of Science In Finance, School Of Business, University Of Nairobi. 2017.
Erik Pebrin Naibaho and Sri Rahayu. 2014. Effect of Receivables Turnover and Inventory Turnover on Profitability (Empirical Study of IdX-Listed Food and Beverage Companies 2008-2012). e-Proceeding of Management : Vol.1, No.3 December 2014, ISSN : 2355-9357.
Halim, Abdul and Mamduh M. Hanafi. 2009. Analysis of Financial Statements. Edition. 4. UPP STIM YKPN. Yogyakarta.
Haryanto, Akhmad Sodikin, and Ella Siti Chaeriah. 2018. Effect of Turnover of Cash, Receivables Turnover and Inventory Turnover on Return on Assets (ROA): Case Study in PT Indofood Sukses Makmur Tbk. International Journal of Arts Humanities and Social Sciences. Volume 3 Issue 1 Ç January 2018. www.ijahss.com.
Horngren, Charles T., et al. 2008. Cost Accounting. 7th Edition. PT INDEKS group GRAMEDIA: Jakarta.
Idrus, Muhammad. 2009. Social Science Research Methods. Yogyarkarta: Erlangga.
Indonesian Institute of Accountants, 2017. Financial Accounting Standards. PSAK.
Kieso, Donald E., Jerry J, Weygandt, Terry D.Warfield. 2008. Accounting. Intermediate. 12th Edition. Jakarta: Erlangga.
Kieso, Donald E. Jerry J. Weygandt, Paul D. Kimmel. 2014. Accounting Principles Introduction to Accounting Issue 7 Volume 1. Jakarta: Salemba Empat.
Lisetiyowati, Siti Rosyafah, Kusni Hidayati. 2017. Analysis of Accounts Receivable Turnover against Income Level (Case Study of PT. Waskita Karya (Persero) Tbk In Jakarta). Journal of Accounting Economics Vol. 3. Issue. 3 (2017)
Matilde Amaral Canizio (2017). Effect of Cash Turnover, Receivables Turnover, Inventory Turnover on Profitability in Supermarkets in East Timor. E-Journal of Economics and Business Udayana University 6.10 (2017): 3527-3548.
Mutlasih. 2014. Analysis of Inventory Turnover Rate, Receivables Turnover Rate, Working Capital Turnover Rate and Cash Turnover Rate Against Profitability in Chemical Sector Companies on the Indonesia Stock Exchange 2010-2012. Journal of Business Economics Volume 19 No. 3, December 2014.
Nabila Inastia, Aditya Wardhana (2018). Effect of Receivables Turnover and Inventory Turnover on the Profitability of PT. X (Period 2016-2017). e-Proceeding of Management : Vol.5, No.1 March 2018.
Nanik Sulistiyo Rini, Endang Masitoh Wahyuningsih. 2015. Effect of Receivables Turnover and Working Capital Efficiency on ProfitAbility in the Financial Management Unit at the Purbayan Village Community Empowerment Agency. ECHO, Th. XXVII/49/August 2014 - January 2015.
Narbuko, Cholid and Abu Achmadi, 2010. Research Methodology. Jakarta: Earth.
Ni Kadek Dewi Darmayanti and I Putu Yadnya (2014). The effect of cash turnover, inventory turnover, and receivables turnover on the profitability of the company. e-Journal of the Faculty of Economics and Business, Udayana University.
Palepu, KG, Healy, PM, Bernard, VL, Wright, S., Bradbury, M., & Lee, P. 2010. Business Analysis & Assessment: Using Financial Statements (4ED). Mason: South-Western Cengage Learning.
Reni Febriani (2017). The Effect of Cash Turnover on Profitability in Food and Beverage Companies Listed on the IDX for the 2011-2015 Period. E-Journal of the Faculty of Economics, Pakuan University, Bogor July 2017.
Rika Ayu Nurafika and Khairunnisa Almadany (2018). Effect of Cash Turnover, Receivables Turnover, Inventory Turnover on Profitability in Cement Companies. Journal of Accounting and Business, Vol. 4 (1) Month (May) 2018.
Rio Widiasmoro (2017). Effect of Cash Turnover, Receivables Turnover, and Inventory Turnover on Profitability / Roa in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2011-2014. Journal of Research and Scientific Studies, Economic Faculties of Surakarta University Vol.15 No.3 July 2017.
Riris Lestiowati (2018). Inventory Turnover Analysis and Receivables Turnover against Profitability (Empirical Study on Food and Beverage Sector Companies Listed on the Indonesia Stock Exchange 2014-2016). Journal of Accounting Vol. 6 No. 1 June 2018.
Saefi Komariyah, Ani Solihat. 2014. Effect of Receivables Turnover on The Performance of Study Companies at PT. Jaindo Metal Industries. Performance of the Journal of Management & Business, Vol. XII N0.1 2015.
Sallyritna Sangka, Inggriani Elim, and Stanley Kho Walandouw. 2018. Analysis of The Turnover Rate of Accounts Receivable Against The Statement Of Operating Cash Flow At Manado Quality Hotel. Journal of Accounting Research Going Concern 13(2), 2018, 160-168.
Sarjito Surya, Ruly Ruliana, Dedi Rossidi Soetama (2017). The Effect of Cash Turnover and Inventory Turnover on Profitability. Accountability: Journal of Accounting Science Volume 10 (2).
Sekaran, Uma. 2011. Research Methods for Business. Jakarta: Salemba Empat.
Sekaran, Uma and Bougie, Roger. 2013. Research Methods for Business. United Kingdom: Jhon Wiley & Sons Ltd.
Subramanyam, K.R.; and Wild, John J. 2010. Financial Statement Analysis. Jakarta: Salemba Empat.
Subramanyamdan, K, R and John J. Wild. 2012. Laporan Financial Analysis. Jakarta: Salemba Empat
Sugiyono. 2016. Quantitative, Qualitative and R&D Research Methods. Bandung: PT Alfabet.
Shamsuddin. 2009. Corporate Financial Management. Jakarta: PT. King Grafindo Persada.
Warrad, Lina. 2013. The Impact Of Working Capital Turnover On Jordanian Chemical Industries' Profitability. American Journal of Economics and Business Administration 5 (3): 116-119, 2013, ISSN: 1945-5488.
Warrad, Lina, and Rania Al Omari. 2015. The Impact of Turnover Ratios on Jordanian Services Sectors' Performance. Journal of Modern Accounting and Auditing, February 2015, Vol. 11, No. 2, 77-85.
Wijaya Tony, 2011. Service Quality Management, Jakarta: PTIndeks.
Yesa Mezitriana, Lovelly Dwinda Dahen and Nora Susanti (2017). The Effect of Cash Turnover, Receivables Turnover, Inventory Turnover and Company Size on Profitability Levels in the Food and Beverage Sub-Sector Listed in the Indonesian Securities Reserve in 2010-2015. e-Journal of Economic Education Study Program STKIP PGRI West Sumatra.
www.bi.go.id
www.cnbcindonesia.com
www.idx.co.id
