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Abstract

This study aims to look at how capital turnover, leverage, and revenue growth affect profitability in consumer goods companies in the IDX. This research relies on secondary data from a population of all consumer goods firms companies in the IDX from 2016 to 2018. The classical assumption test is used for analysis, multiple linear regression is used for another test, and hypothesis testing by using the F-test, t-test, and test R2. The effects of the vector working capital turnover have a substantial impact on performance, while the variables Debt to Equity Ratio (DER) and Growth Ratio (GR) have no significant impact. Furthermore, the results yielded a modified R square value of 0.283, indicating that Working Capital Turnover (WCT) is on the rise.

Keywords: Profitability, Working Capital Turnover (WCT), Debt to Equity Ratio (DER), Growth Ratio (GR).

(ProQuest: ... denotes formulae omitted.)

INTRODUCTION

Accompanied by the development of the world economy in Indonesia, the era of the free market has also experienced rapid development. This affects companies in Indonesia, where companies are currently required to improve company performance to maintain viability and achieve company goals by carrying out various business activities with the ultimate goal being to make a profit.

Company performance can be measured from the profits earned, but the large profits earned are not necessarily the measure of a company that has worked efficiently. Efficient is known by comparing earnings with other indicators then the level of profitability will be known. The profitability ratio evaluates a company's potential to make money. This ratio also serves as a gauge of a company's management's ability to control its properties. ROA is a metric that assesses a company's potential to benefit from all of its capital and properties. According to Fahmi (2012)'s study, this ratio examines the degree to which an investment is capable of producing the desired returns. The level of profitability in the company affects several factors, including working capital, leverage, and liquidity.

Problem Formulation:

1. Do working capital turnover, leverage, and sales growth affect the profitability of consumer goods companies in the IDX during 2016-2018.

2. Does working capital turnover affect the profitability of consumer goods companies in the IDX during 2016-2018.

3. Does leverage affect the profitability of consumer goods companies...

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