scholarly journals THE EFFECT OF WORKING CAPITAL ON FIRM PERFORMANCE

2018 ◽  
Vol 2 (2) ◽  
pp. 232-244
Author(s):  
Indah Wahyuni ◽  
Seto Sulaksono Adi Wibowo
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Capital Good ◽  
Working Capital ◽  
Independent Variables ◽  
Cash Conversion Cycle ◽  
Good Working ◽  
Net Profit ◽  
Inventory Turnover ◽  
Positive Effect

This study aims to examine the effect of working capital on firm performance. To implement the operating activities, the company should be able to manage good working capital. Good working capital management can help to enhance the firm performance in the eyes of investors. In this research, working capital is measured using working capital turnover, inventory turnover, days of supply, and cash conversion cycle as independent variables, while firm performance is measured using net profit margin as the dependent variable. The sample of this research is a manufacturing company listed in Indonesia Stock Exchange (IDX) period 2014-2016. Samples were taken by using purposive sampling and meeting the sample criteria. The anaysis technique used in this research is multiple regression analysis by using t test. The results of the study found that working capital turnover, days of supply, and cash conversion cycle negatively affect the performance of the company. While the variable of inventory turnover shows that inventory turnover has a positive effect on firm performance.

scholarly journals Measuring Automotive Company's Capabilities in Indonesia in Producing Profits Regarding Working Capital

2018 ◽  
Vol 4 (1) ◽  
pp. 67 ◽  
Author(s):  
Yuniningsih Yuniningsih ◽  
Veronika Nugraheni Sri Lestari ◽  
Nurmawati Nurmawati ◽  
Barid Nizarudin Wajdi
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Working Capital ◽  
Return On Equity ◽  
Cash Conversion Cycle ◽  
Inventory Turnover ◽  
Independent Variable ◽  
Positive Effect ◽  
Observation Period

<p>The present research aims to determine company's ability to generate profit for capital or shareholders represented by proxy profitability and measured by return on equity (ROE) by taking into account working capital. The method of analysis used is multiple linear regressions with profitability as dependent variable and working capital as an independent variable in terms of cash cycle conversion variables, inventory turnover, and liquidity. The data used are secondary data from financial statements of automotive companies listed in Indonesia Stock Exchange (IDX) with the observation period of 2012-2016. The finding indicates that cash conversion cycle variable has a significant effect on profitability with negative direction yet does not support the hypothesis. Turnaround voucher variables support hypotheses which have a positive effect on profitability.  Liquidity variable has no significant effect on profitability. Limitation of this research is that working capital variable only based on 3 variables.  Implications created by the present study are that independent variables in this study have only contributed in explaining the dependent variable by 27.9%. Therefore, future study needs to be expanded with other variables of working capital or other variables. In addition, unit of analysis can be extended to companies other than automotive.</p>

scholarly journals PENGARUH WORKING CAPITAL, FIXED FINANCIAL ASSETS, FINANCIAL DEBT , DAN FIRM SIZE TERHADAP PROFITABILITAS

2019 ◽  
Vol 3 (1) ◽  
pp. 29
Author(s):  
Farah Margaretha ◽  
Nina Adriani
Keyword(s):  
Firm Size ◽  
Sampling Method ◽  
Stock Exchange ◽  
Testing Hypothesis ◽  
Financial Assets ◽  
Analysis Method ◽  
Working Capital ◽  
Independent Variables ◽  
Negative Effect ◽  
Positive Effect

<em>The purpose of this research is to analyze the influence of working capital, fixed financial assets, financial debt and firm size on probability. Data of this research is obtained from 19 companies of textile and garment industry that have been listed on Jakarta Stock Exchange and it has selected using purposive sampling method during 2001 to 2005. Data analysis method used in this research are multiple linier regression and testing hypothesis. Independent variables used in this research are working capital, fixed financial assets, financial debt and firm size and the dependent variable is profitability. Based on testing hypothesis, we have results that working capital and firm size have positive effect and significant on profitability whereas fixed financial assets and financial debt have negative effect and significant on profitability. The implication of this research explain that the company need to play attention on working capital management, fixed financial assets, sales and debt proportion because all those things have influence on profitability.</em>

scholarly journals Pengaruh perputaran modal kerja piutang kas dan persediaanterhadapnet profit margin pada perusahaan industri barang konsumsi di BEI

JURNAL PUNDI ◽  
2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Martius Martius
Keyword(s):  
Consumer Goods ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Statements ◽  
Profit Margin ◽  
Working Capital ◽  
Net Profit ◽  
Inventory Turnover ◽  
Consumer Goods Industry ◽  
Operational Activities

In the development of free trade and great globalization to the way the company in carrying out operational activities in order to be more effective and efficient. This study aims to determine the turnover of working capital, receivable turnover, cash turnover and inventory turnover of Net Profit Margin (NPM) in consumer goods industry companies listed on the Indonesia Stock Exchange period 2012-2016. The sampling technique used is purposive sampling with the criteria of Consumer Goods Industry which always present the financial statements as of December 2012-2016. The results of this study indicate that partially working capital turnover and receivable turnover have no significant effect on net profit margin, while receivable turnover and cash turnover and inventory turnover significantly influence net profit margin. But simultaneously rotation of working capital, receivable turnover, cash turnover and inventory turnover significantly affect net profit margin. The Adjusted R square value shows that secar jointly with working capital turnover, receivable turnover, cash turnover and inventory turnover contributed to net profit margin of 38.3% while the remaining 61.2% was influenced by other variables not included in this study.

scholarly journals Pengaruh Modal Kerja Terhadap Net Profit Margin pada Industri Makanan dan Minuman yang Terdaftar di BEI

2020 ◽  
Vol 1 (1) ◽  
pp. 205-220
Author(s):  
Karunia Putri Augustina Dwi Anggiyani ◽  
Leni Nur Pratiwi ◽  
Banter Laksana
Keyword(s):  
Stock Exchange ◽  
Profit Margin ◽  
Working Capital ◽  
Short Term ◽  
Beverage Industry ◽  
Food And Beverage Industry ◽  
Net Profit ◽  
Food And Beverage ◽  
Negative Effect ◽  
Inventory Turnover

The aims of this research are to analyze the effect of Working Capital Turnover, Inventory Turnover, Cash Turnover, Receivables Turnover, and Short-term Debt to Net Profit Margin (NPM) at food and beverage industry listed on BEI (Indonesia Stock Exchange) Period 2017-2019. This research is using purposive sampling method and obtained a sample of 6 companies. The analysis used to determine the effect of Working Capital Turnover, Inventory Turnover, Cash Turnover, Receivable Turnover, and Short-Term Debt on Net Profit Margin (NPM) is a statistical analysis with using the help of SPSS 22.0 software. The results of this study indicate that the Working Capital Turnover, Inventory Turnover, Cash Turnover, Receivable Turnover and Short Term Debt variables simultaneously have a significant effect on Net Profit Margin (NPM). Working Capital Turnover, Inventory Turnover and Short-term Debt partially have a negative effect on NPM. Receivables turnover has a positive effect on NPM. whereas, cash turnover does cash turnover does not have an effect on NPM.

scholarly journals Effects of Working Capital Management and Liquidity: Evidence from the Cement Industry of Bangladesh

1970 ◽  
Vol 6 (1) ◽  
pp. 37-47 ◽  
Author(s):  
Sayeda Tahmina Quayyum
Keyword(s):  
Stock Exchange ◽  
Cement Industry ◽  
The Other ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Management Efficiency ◽  
Time Period ◽  
Inventory Turnover

This paper is an attempt to investigate the effects of working capital management efficiency as well as maintaining liquidity on the profitability of corporations. For this purpose, corporations enlisted with the cement industry of Dhaka Stock Exchange have been selected and the analysis covers a time period from year 2005 to 2009. The purpose of this paper is to establish a relationship which is statistically significant, the other purpose is to help explain the necessity of firms optimizing their level of working capital management and maintaining enough liquidity as it affects the profitability. The result of this study clearly shows significant level of relationship between the profitability indices and various liquidity indices as well as working capital components.KEY WORDS: Working capital management; Liquidity; Cement Industry; Cash Conversion Cycle; Inventory Turnover; Receivables Turnover; Payable Turnover.DOI: http://dx.doi.org/10.3329/jbt.v6i1.9993  Journal of Technology (Dhaka) Vol. 6(1), January-June, 2011 37-47

scholarly journals PENGARUH MARJIN LABA BERSIH DAN PENGEMBALIAN ATAS EKUITAS TERHADAP HARGA SAHAM PERUSAHAAN INDUSTRI BARANG KONSUMSI

2019 ◽  
Vol 5 (2) ◽  
pp. 170 ◽  
Author(s):  
Sari Nuzullina Rahmadhani
Keyword(s):  
Linear Regression ◽  
Consumer Goods ◽  
Stock Price ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Profit Margin ◽  
Return On Equity ◽  
Independent Variables ◽  
Net Profit ◽  
Positive Effect

This research aims to detemine the effect of net profit margin and return on equity to the stock price on consumer goods industry listed on the Indonesia Stock Exchange. Independent Variables are net profit margin and return on equity. Dependent Variable is stock price. The population in this research are all consumer goods industries listed on the Indonesia Stock Exchange during the period 2012 to 2016 as much as 37companies.The type of this research is associative causal. The sampling technique was purposive sampling, which is based on certain criteria and got as much as 22 companies. The analysis used classic assumption testing, hypothesis testing, and linear regression. The results show that net profit margin and return on equity have positive effect and significant on stock price for simultaneous. And for partial, net profit margin has positive effect on stock price and return on equityhas positive and significant on stock price.

scholarly journals IMPACT OF AGGRESSIVENESS OF WORKING CAPITAL MANAGEMENT ON FIRM'S PROFIT

2019 ◽  
Vol 7 (3) ◽  
pp. 612-618
Author(s):  
Dr. Khurram Sultan ◽  
Muhammad Muzammal Murtaza
Keyword(s):  
Stock Exchange ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Working Capital Management ◽  
Independent Variables ◽  
Cash Conversion Cycle ◽  
Maximum Profit ◽  
The Cost ◽  
The Impact

Purpose of Study: The study intends to analyze the fact that whether it is better to be aggressive or conservative in formulating strategies for working capital management. The main objective of any firm is to earn the maximum profit but caring for the liquidity is also an important element. Profit of the firm can be increased, the problem comes when profit increases at the cost of liquidity. Methodology: The data we have collected is from Karachi stock exchange (61 companies) in Pakistan for the time tenure of 6 years (2013-2018). Results: This study explores the impact of aggressiveness of working capital management on the firm's profit. Implications/Applications: According to our analysis while considering the Current ratio and Cash conversion cycle as independent variables, there is a significant impact of Current ratio on the firm's profit.

scholarly journals THE EFFECTS OF WORKING CAPITAL MANAGEMENT ON THE PROFITABILITY OF NIGERIAN MANUFACTURING FIRMS

2013 ◽  
Vol 14 (3) ◽  
pp. 520-534 ◽  
Author(s):  
Omo Aregbeyen
Keyword(s):  
Stock Exchange ◽  
Manufacturing Firms ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Operating Income ◽  
Cash Conversion Cycle ◽  
Operating Profit ◽  
Inventory Turnover

The efficiency of working capital management (WCM) has implications for firms’profitability. This paper empirically investigates the effects of WCM on the profitability of a sample of 48 large manufacturing firms quoted on the Nigerian Stock Exchange (NSE) for the period 1993 to 2005. It is aimed at filling the gaps in a previous study and contribute to expanding and enriching the literature particularly on Nigeria and at large. The analysis examined the responses of the firms’ profitability to WCM and a number of augmenting factors. Profitability was alternatively measured by gross operating profit (GOI), net operating income (NOI) and return on assets (ROA). Likewise, WCM was measured by the average collection period (ACP), average pay period (APP), inventory turnover days (ITID) and comprehensively by the cash conversion cycle (CCC). The results indicate that the firms’ have been inefficient with WCM and caused significant reductions in profitability. The paper concludes that improving the efficiency of WCM is essential and recommends that manufacturing firms in Nigeria should shorten the ACP, APP, ITID and reduce their CCCs.

scholarly journals Pengaruh Cash Turnover, Working Capitalturnover, Receivable Turnover, Dan Inventory Turnover Terhadap Return On Asset Pada Perusahaan Keramik Yang Terdaftar Di Bursa Efek Indonesia

2019 ◽  
Vol 10 (2) ◽  
pp. 219-238
Author(s):  
Satriawaty Migang ◽  
Antika Irawan
Keyword(s):  
Research Method ◽  
Quantitative Method ◽  
Stock Exchange ◽  
Financial Statement ◽  
Working Capital ◽  
Return On Assets ◽  
Cross Sectional ◽  
Independent Variables ◽  
Inventory Turnover

This research is meant to examine the influence of cash turnover, working capital turnover, receivable turnover, and inventory turnover to the return on assets in the Ceramic companies listed on the Indonesian Stock Exchange (IDX) in 2013-2017 periods. The independent variables in this study wer Cash Turnover, Working Turnover, Receivable Turnover, and Inventory Turnover, while for the dependent variable is Return On Assets. The samples are 5 companies which have been selected by using cross sectional. The financial statement data has been obtained from the Indonesian Stock Exchange (IDX). The research method has been done by using quantitative method and multiple linier regressions with the application instrument of SPSS (Statistical Product and Service Solutions). The result of this research shows that working capital turnover has an influence to the return on assests whereas the cash turnover, receivable turnover and inventory turnover do not have any influence to the return on assets. The value R square is 0,558 which shows that all of independent variables which are cash turnover,working capital turnover, receivable turnover and inventory turnover can explain the dependent variable is return on assets is 55,8% and remaining is 44,2% which is influenced by orther factors which are not included in this model.

scholarly journals ANALISIS PENGARUH RASIO KEUANGAN TERHADAP PERTUMBUHAN LABA PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

2019 ◽  
Author(s):  
Boy Fadly
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Profit Margin ◽  
Financial Ratios ◽  
Test Results ◽  
Working Capital ◽  
Earnings Growth ◽  
Purposive Sampling ◽  
Net Profit ◽  
Inventory Turnover

This study is purposed, to examine whether the financial ratios affect either partially or simultaneously to earnings growth cash of the company manufacturing listed in Indonesia Stock Exchange 2010 – 2012. This study used a purposive sampling method. The conclusion that can be drawn from the test results that partially affect the net profit margin has an effect on earnings growth. While simultaneously debt to assets ratio, net profit margin, working capital to total asset, and inventory turnover have an effects earnings growth.

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