PENGARUH MODAL KERJA, LEVERAGE, LIKUIDITAS TERHADAP PROFITABILITAS PERUSAHAAN TEKSTIL DAN GARMEN

Abstract

The industry of textile and garment is one of the business sectors. The sample was textile and garment companies which were listed on indonesia stock exchange. This research aimed to examine the effect of working capital, leverage, liquidity on profitability. The sampling collection technique used purposive sampling. There were five out of eighteen textile and garment companies which listed on indonesia stock exchanes, had fulfilled the criteria given. The data analysis technique used multiple linier regression. The research result concluded the working capital had positive but insignificant effect on profitability. It meant, the more numbers of selling, the more profits would be gained. The leverage had positive significant effect on profitability, since mostly the total asset used equity in its operational. Liquidity had positive signifikcant effect on profitability, since company needed to have balance supply with other current assets. In order to increase profitability, the textile and garment companies were expected to have efficient working capital. Besides, it needed to focus on the leverage since it affected profitability. Moreover, the companies needed to increase liquidity as it showed they were able to fulfil its responsibility which affected on high profit.
Keywords: working capital, leverage, liquidity, profitability