The Effect of Working Capital Turnover and Receivable Turnover on Profitability: Case Study on PT. Merck Tbk

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Daryanto, Wiwiek Mardawiyah and Rachmanto, Fajar (2017) The Effect of Working Capital Turnover and Receivable Turnover on Profitability: Case Study on PT. Merck Tbk. International Journal of Business Studies, 1 (2). pp. 60-65. ISSN 2580-0132

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Abstract

With the growing world of business, the competition between similar companies getting tighter. To maintain the viability of a company required a good management of resources conducted by the management. Account Receivable turnover and working capital are very important for a company because it is the elements in measuring the profitability of the company. The purpose of this research is to know: (1) the effect of account receivable turnover to company profitability, (2) the effect of working capital turnover to the company, (3) the effect of account receivable turnover and working capital turnover to company profitability. The research method used is quantitative analysis, correlation coefficient test, the coefficient of determination test and hypothesis test. The data used in this study is secondary data sourced from financial statement PT. Merck Tbk period 2009-2013 obtained directly from the respondent. The results based on multiple linear regression tests showed that simultaneously turnover of account receivable and working capital turnover did not significantly affect company profitability (5.603 < 9.55). Partially, the account receivable turnover does not significantly affect the profitability of the company (2.298 < 3.182) and the working capital turnover does not significantly affect the profitability of the company (3.003 < 3.182). So, it can be said the hypothesis in this study was rejected. Keywords: Working capital, Account receivable, Turnover, Profitability

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Divisions: Research And Community Empowerment > Journals
Depositing User: Rizky Amalia
Date Deposited: 13 Nov 2019 07:20
Last Modified: 22 Dec 2021 07:23
URI: http://repository.ipmi.ac.id/id/eprint/22

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