The Effect of Company Size and Working Capital on Net Income (An Empirical Study of Manufacturing Sector Companies in the Consumer Goods Industry, Home Appliances Sub-Sector Ladder Registered on the IDX from 2015 to 2020)

Abstract

This study examines how working capital and firm size affect net profit (Empirical Study of Manufacturing Companies in the Consumer Goods Industry Sector, Household Appliances Sub Sector Listed on the IDX for the 2015 – 2020 period). Multiple linear regression analysis was used to determine the effect of two independent variables on one dependent variable. The population in this study is financial reports published by Manufacturing Companies listed on the IDX in the Consumer Goods Industry Sector, Household Appliances Sub-Sector. The sample was taken for six years, from 2015 to 2020, using the Financial Position Report and Profit and Loss Reports to obtain data, Company Size, Working Capital, and Net Income. According to the study's findings, firm size and working capital both have positive and substantial effects on net profit, with the latter having an influence on net profit that is both positive and significant. Other factors that influence Net Profit but are not analysed include the 83.3% outcome of the Coefficient of Determination and the remaining 16.7%.