Analyzing the Influence of Cash and Working Capital Turnover on the Profitability of Indonesia’s Food and Beverage Sector
Keywords:
Cash Turnover, Working Capital Turnover, Profitability and Multiple Regression Analysis.Abstract
The purpose of this study is to determine the effect of cash turnover and working capital turnover on working capital turnover in Food and Beverages Companies on the Indonesia Stock Exchange. In this study, an associative research approach is used, which is a study to determine the effect between independent variables and their dependent variables. The sample of this study is a Food and Beverages company that meets the sample criteria of 11 companies for the period 2020 - 2024. To prove the hypothesis proposed in this study, a multiple linear regression statistical tool is used with hypothesis testing (t-test) and simultaneous testing (F-test). Based on the results of the hypothesis test, it can be proven that the cash turnover variable has a significant effect on profitability. This can be seen from the results of the hypothesis test whose significance value is less than 0.05, which means the hypothesis is accepted. The working capital turnover variable does not have a significant effect on profitability. This can be seen from the results of the hypothesis test whose significance value is greater than 0.05, which means the hypothesis is rejected. Cash turnover and working capital turnover together have a positive effect on profitability because they have a significance level of less than 0.05 (5%), which means the hypothesis is accepted.
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