Abstract

The mining sector is a manufacturing company sector whose activities consist of extracting, processing and exploiting, and selling coal, minerals, metals, and natural gas. This research was conducted to determine whether ROA is affected by cash turnover, accounts receivable turnover, and inventory turnover using documentation as a data collection and a method of multiple linear regression analysis through SPSS data processing. The population used is the mining and quarrying sector companies listed on Indonesia Stock Exchange (IDX) from 2017-2019 totaling 43 companies. The purposive sampling method was used in determining the sample which resulted in 33 samples. The research shows that cash turnover, accounts receivable turnover and inventory turnover do not affect ROA because this is due to a decrease in the amount of production, cash flow constraints due to low turnover of accounts receivable, and low sales so that inventory turnover is slow and inventory costs are higher.

Highlights

  • Profit is one of the many purposes for establishing a company

  • According to Kasmir (2014), the role of profitability ratios for companies includes seeing the profits that the company gets during one period, seeing the development of company profits from year to year, and knowing company funds both own capital and loan capital used for production

  • Documentation is used as a data collection technique and makes Return on Assets (ROA) the dependent variable and cash turnover, accounts receivable turnover, and inventory turnover independent variables

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Summary

Introduction

Profit is one of the many purposes for establishing a company. Companies can meet other goals or targets by making a profit. Many factors influence financial performance, one of which is the company's survival. To find out a healthy financial performance, one way is to observe the company's proficiency in processing profits using the profitability ratio. Profitability is the ratio to see how efficient the management is in carrying out its operational activities to get profit during a certain period (Kasmir, 2014). The argument that the company's ability to generate profits is evaluated by the profitability ratio. According to Kasmir (2014), the role of profitability ratios for companies includes seeing the profits that the company gets during one period, seeing the development of company profits from year to year, and knowing company funds both own capital and loan capital used for production

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