Abstract
This study aims to determine the effect of working capital turnover, operational cost ratio, inventory turnover on the performance of UD. Firmansyah. The data used are the financial statements for the period 2015-2018. The data obtained were analyzed using multiple linear regression. The number of samples used was 48 samples. Partially the results show that working capital turnover and inventory turnover do not have a significant effect on company performance, while the ratio of operating costs has a significant effect on company performance. Meanwhile, simultaneously the research shows that working capital turnover, operational cost ratio, and inventory turnover have a significant effect on company performance. The coefficient of determination in this study is 0.165, which means that 16.5% of the company's performance can be explained by working capital turnover, operational cost ratio, and inventory turnover variables. At the same time, the remaining 83.5% is explained by other factors not included in this study.
Highlights
According to Kusumo and Dermawan (2018), a company is an organization established with the main objective of making a profit in order to improve the welfare of its owners or shareholders
This study aims to determine whether working capital turnover, operational cost ratio, and inventory turnover have an effect on company performance
Through the t-test, this study shows that working capital turnover and inventory turnover do not have a significant effect on company performance, while the ratio of operating costs has a significant effect on company performance
Summary
According to Kusumo and Dermawan (2018), a company is an organization established with the main objective of making a profit in order to improve the welfare of its owners or shareholders. In carrying out its activities, companies need capital to be spent daily for the continuity of company activities. Abdul Halim (2015: 159) argues that working capital consists of several elements, namely cash, accounts receivable and inventories. Every activity carried out by the company always requires funds, both to finance daily operational activities and to finance long-term investments. In the company's operational activities, an important aspect of capital is the cost to support the company's activities. Costs are an important element that must be sacrificed for the benefit and smooth running of the company's operational activities, Ernawati (2015)
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