The effect of working capital management, fixed financial asset ratio, financial debt ratio on profitability in Indonesian consumer goods sector

Kartikasary, M.; Marsintauli, F.; Sitinjak, M.; Laurens, S.; Novianti, E.; Situmorang, R.

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ISSN 2369-7407 (Online) - ISSN 2369-7393 (Print) Quarterly Publication Volume 7 Issue 3 pp. 661-666 , 2021

The effect of working capital management, fixed financial asset ratio, financial debt ratio on profitability in Indonesian consumer goods sector Pages 661-666 Download PDF

Authors: Metya Kartikasary, Frihardina Marsintauli, Martogi Sitinjak, Sebastianus Laurens, Eka Novianti, Roni Situmorang

DOI: 10.5267/j.ac.2020.12.011

Keywords: Working capital, Fixed asset, Profitability

Abstract: The purpose of this study is to analyze the impact of working capital management, fixed assets and debt ratio on company profitability. The study uses a sample of consumer goods sector companies listed on the Indonesia Stock Exchange from 2017 to 2019. The researchers use working capital management by the number of number of days account receivable (ARDays), the number of days Account Payable (APDays), the number of days inventory (INVDays), the Fixed Financial Asset Ratio (FA), and the Financial Debt Ratio (FD) with profitability by using gross profit (GP). Researchers used the secondary data obtained from the Indonesia Stock Exchange (IDX) on yearly basis and process the data statistics with multiple regression by SPSS 20. The population of this research includes 54 companies and the total sample covers 46 companies by passing the purposive sampling stage. The results of this study indicate that there was a significant relationship between working capital management, FA ratio and profitability while FD ratio had no effect on profitability.

How to cite this paper

 Kartikasary, M., Marsintauli, F., Sitinjak, M., Laurens, S., Novianti, E & Situmorang, R. (2021). The effect of working capital management, fixed financial asset ratio, financial debt ratio on profitability in Indonesian consumer goods sector.Accounting, 7(3), 661-666.

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