The Effect of Cash Turnover and Accounts Receivable Turnover on Profitability of Food and Beverage Companies on the IDX

Abstract

This research was conducted because of the discrepancy between the theory of cash turnover, receivables turnover and profitability with the existing conditions in food and beverage companies on the IDX in 2016-2020. The purpose of this study was to determine the effect of partially and simultaneously cash turnover, accounts receivable turnover on profitability. The independent variables in this study are cash turnover and receivables turnover, the dependent variable in this study is profitability as measured by Return On Assets (ROA). The results show that there is a positive and significant effect between cash turnover on company profitability, then there is no effect There is a significant relationship between accounts receivable turnover on profitability and there is a positive and significant effect between cash turnover and accounts receivable turnover simultaneously on the company's profitability.

Pengaruh Perputaran Kas dan Perputaran Piutang terhadap Profitabilitas Pada UMKM di Kota Pariaman

“…Persediaan barang merupakan aktiva yang selalu dalam keadaan berputar, di mana secara terus-menerus mengalami perubahan [9]. Apabila persediaan terlalu kecil, maka kegiatan operasi perusahaan akan mengalami penundaan atau perusahaan beroperasi pada kapasitas yang rendah [10]. Akan tetapi apabila perusahaan mempunyai persediaan yang terlalu banyak namun kurang efektif dalam pengelolaannya, maka perputaran persediaan akan rendah sehingga akan mempengaruhi profitabilitas [11].…”

How do contract performance rates affect entrepreneurs’ risk-averse attitudes? Evidence from China

“…Hence, the rate of inter-firm contract performance can be considered a realistic representation of their transaction costs (Williamson, 1979). Previous research on contract performance rates has explored their relationship with business performance and firm behavior, such as the return on assets (Manullang et al, 2020;Hasanudin et al, 2022) and profitability (Pratama et al, 2021) of firms as well as the willingness of private suppliers to engage in public-private partnership projects (Hartman et al, 2020). While existing studies have examined the effect of contract fulfillment on firm behavior, few studies have combined contract performance rates with entrepreneurs' risk attitudes.…”