EFFICIENCY OF WORKING CAPITAL ON COMPANY PROFITABILITY IN GENERATING ROA (CASE STUDIES IN CV. TOOLS BOX IN SURABAYA)
|
| Title | EFFICIENCY OF WORKING CAPITAL ON COMPANY PROFITABILITY IN GENERATING ROA (CASE STUDIES IN CV. TOOLS BOX IN SURABAYA) |
| Authors | |
| Abstract | The purpose of this study is to investigate the influence of the working capital efficiency ratiotoward profitability. The working capital efficiency ratios used in this study are a currentratio, a receivable turnover, and a net working capital turnover. On the other hand, corporateprofitability used in this study is measured by return on assets (ROA). This research isconducted as the case study in a company, namely CV. Tools Box. The data are the monthlyfinancial reports from January 2008 until December 2009. For data analysis, the researcherused a multiple regression analysis, t-test, F-test, coefficient of determination, partial correlation,and classical assumptions. The result of this study indicates that only partially networking capital turnover has a significant effect on ROA. In Addition, the current ratio, receivableturnover, and net working capital turnover simultaneously has a significant effect onROA. |
| Publisher | STIE Perbanas Surabaya |
| Date | 2012-08-17 |
| Source | Journal of Economics, Business, and Accountancy | Ventura Vol 15, No 2 (2012): Agustus 2012 |