International Journal of Applied Finance and Business Studies
Vol. 8 No. 4 (2021): March: Applied Finance and Business Studies

The Effect of Working Capital and Effectiveness of Working Capital on Profitability in Metal and Cement Manufacturing Companies Listed on Indonesia Stock Exchange

Rendi Avinanta Sinuraya (Universitas Sumatera Utara)



Article Info

Publish Date
30 Mar 2021

Abstract

The objective of this research is to know the influence of working capital and working capital turn over either partially or simultaneously have an effect significantly on profitability of metal and cement manufacturing registered in Indonesia Stock Exchange. The hypothesis of research was that work capital and it's circulation have positive and significant effect on profitability of metal and cement manufacturing registered in the Stock Exchange of Indonesia. This research is classified as causal research with 18 companies from 19 metal and cement manufacturing companies registered in Indonesia Stock Exchange and they maintained complete financial statements that have been audited since 2007-2011 gained from the sites www.idx.co.id and www.icmd.com. Sample was selected by using purposive sampling method. The process of data analyzes used was classic assumption test and hypothetical test. The result of research indicated that work capital and working capital turn over simultaneously have significant effect. Partially working capital has a significant effect on profitability of metal and cement manufacturing registered in the Indonesia Stock Exchange.

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Journal Info

Abbrev

ijafibs

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Applied Finance and Business Studies is published with both online and print versions devoted to provide the publication of research finding in finance and business research studies. Objectives The main goal of ijafibs is to present outstanding, high quality research ...