Abstract
The aim of this study is to identify how receivables turnover (RTO), payable turnover (PTO), and inventory turnover (ITO) affect profitability by using return on equity (ROE) as the measurement. The samples used in this study were pharmaceutical sub-sector manufacturing companies, that were listed on the Indonesian Stock Exchange for the 2017-2021 period. The independent variables used in this study are RTO, PTO, and ITO, while the dependent variable is return on equity (ROE). The analytical method used is the multiple linear regression model. The result of this study shows that RTO partially affects ROE, while PTO does not, and ITO fully does. Meanwhile, RTO, PTO, and ITO simultaneously affect ROE.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
