PENGARUH LIKUIDITAS, STRUKTUR MODAL, DAN PERPUTARAN MODAL KERJA TERHADAP PROFITABILITAS PADA PERUSAHAAN OTOMOTIF YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

Automotive companies which its profitability, was one of the sub sectors which can increase Indonesia economic growth. While, the rapid increase of vehicle makes automotive companies earn huge profits. Therefore, this research aimed to find out the effect of liquidty, capital structure and working capital turnover on the profitability of automotive company which were listed on Indonesia Stock Exchange 2014-2018. The research was quantitative, Moreover, the population was 12 automotive companies. Furthermore, the data collection technique used purposive sampling. In line with, there were 6 companies as sample. Furthermore, the data analysis technique used multiple linear regression. Based on the research result, it concluded liquidty (CR) had significant effect on the profitability (ROA). It meant, the bigger the short-term debt, the more effect would be on profitability and operational cost. Likewise, capital structure (DER) had significant effect on the e profitability (ROA). In other words, the bigger the long-term debt was, the higher the cost would be. As consequence, this would affect company’s profit level. On the other hand, working capital turnover (WCT) had insignificant effect on the profitability (ROA). This meant, on the profitability (ROA) would not be affeceted since having the change of woring capital effectively could not be done and predicted in certain periods. In brief, the company should consider more to short term debt and long term debt. Also, it had to determine the amount of working capital that should be used. As consequence, the company could give more attention on its profit level and maximize the profitability.
Keywords: Liquidty, Capital Structure, Working Capital Turnover, Profitability