PENGARUH PERPUTARAN MODAL KERJA, UKURAN PERUSAHAAN DAN DIVERSIFIKASI TERHADAP PROFITABILITAS. (Studi pada Perusahaan food and beverage pada tahun 2016-2020)

Abstract

This research aimed to examine the effect of working capital flow, firm size, and diversification on the profitability of Food and Beverage companies that were listed on the Indonesia Stock Exchange (IDX).The research was quantitative. Furthermore, the data collection technique used purposive sampling. In line with that, there were 8 samples of companies. The data analysis technique used multiple linear regression.The research result concluded that working capital flow had a significant effect on profitability. This happened as higher working capital flow reflected that the companies had effectively used their working capital in fulfilling the goods or services produced. However, the firm size did not affect profitability since the incline of firm size influenced the cost rise as well as the companies’ load. In the end, it lowered the companies’ profitability. On the other hand, diversification had a significant impact on profitability. In other words, the companies with higher product diversification would have a bigger chance to develop their market; so that they could have bigger profit rather than companies that had one product segment.