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.
Highlights
The Covid-19 pandemic has paralyzed the country's economy, the apprehensive economic conditions prompted the government to return to normal conditions
The calculation results show the t value of the cash turnover statistic is 0.007
Accounts receivable turnover has no significant effect on profitability partially as measured by Return On Assets (ROA)
Summary
The Covid-19 pandemic has paralyzed the country's economy, the apprehensive economic conditions prompted the government to return to normal conditions. Some business sectors are gradually declining, termination of employment almost occurs in every company (Rohmah, 2020). Unemployment has an inversely proportional effect on the level of people's purchasing power (Hidayati & Maskuri, 2020). The decline in demand for goods and services greatly affects the sustainability of a company (Yuniati & Amini, 2020). The company aims to achieve upward profit growth. To support the company's activities in generating profits during the pandemic, effective working capital management is needed. Based on the results of the study (Sholihah, 2020) is the turnover of working capital on the cash and receivable components affect the level of company profitability. Companies can use profitability ratios to assess the effectiveness of overall management which is shown in the level of profit obtained from sales and investments (Alimin, 2016)
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