The Effect of Working Capital Turnover and Inventory Turnover on Profitability on CV. Cita Mandiri, Junrejo Sub-Regency, Batu City

Elfrida Fatima Ida; Elly Lestari; Moch Nurhidayat

Authors

Elfrida Fatima Ida Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia
Elly Lestari Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia
Moch Nurhidayat Management, Faculty of Economics, University of Tribhuwana Tunggadewi, Malang, Indonesia

Keywords:

Working Capital Turnover, Inventory Turnover, profitability, Effect, Cita Mandiri

Abstract

High profitability describes the company's success in managing the company's operations. Factors that support the increase in profitability are inventory turnover and working capital. The following research aims to determine the impact of inventory turnover and working capital turnover on profitability in CV Cita Mandiri, Junrejo District, Batu City in a partial and simultaneous way. The following research was carried out using quantitative techniques. The data source in the following research is the financial statements of CV Cita Mandiri, Junrejo District, Batu City for five periods, namely 2019 to 2023. The data analysis technique carried out is multiple linear regression. With a t-value of 5.465 for working capital turnover and a t-value of 5.206 for inventory turnover, the results of the following study explain that these two factors have a significant influence on profitability. Inventory turnover and working capital turnover together have a great influence on profitability on CV Cita Mandiri, Junrejo District, Batu City. with an F value = 11.246 or an influence of 91.8%. This result can be understood that the higher the working capital turnover and inventory turnover are able to support the increase in the company's profitability.

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Proceedings

Nasution, A. A. (2020). Effect of inventory turnover on the level of profitability. In IOP Conference Series: Materials Science and Engineering (Vol. 725, No. 1, p. 012137). IOP Publishing.