PENGARUH MANAJEMEN MODAL KERJA DAN RASIO KEUANGAN TERHADAP PROFITABILITAS PADA PERUSAHAAN INDUSTRI YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

This research aimed to examine the effect of Working Capital Management and financial ratios, i.e. liquidity ratio and solvability ratio; on profitability. Furthermore, the working capital management was measured by Working Capital Turnover, the liquidity ratio was measured by the Current Ratio, and the solvability ratio was measured by the Debt to Equity Ratio. The research was quantitative. The population was Food and Staples Retailing industrial companies that were listed on the Indonesia Stock Exchange (IDX). Moreover, the data collection technique used a saturated sampling. In line with that, there were 5 Food and Staples Retailing industrial companies taken as samples. The data was taken for 5 years (2018-2022). Therefore, it obtained 25 data observed. Additionally, the data analysis technique used multiple linear regressions with the SPSS (Statistical Product and Service Solution) program 29 version. The result indicated that Working Capital Turnover had a significant effect on the profitability of Food and Staples Retailing industrial companies. On the other hand, the Current Ratio had an insignificant effect on the profitability of Food and Staples Retailing industrial companies. However, Debt to Equity Ratio had a significant effect on the profitability of Food and Staples Retailing industrial companies.