Capital Turnover Ratio Research Articles

The Effect of Working Capital Turnover and Current Ratio (CR) on Return On Investment (ROI) at PT Harum Energy, Tbk (A Company Listed on the Indonesia Stock Exchange Period 2015-2022)

The purpose of this study was to determine the effect of working capital turnover and current ratio (cr) on return on investment (roi) at PT Harum Energy, Tbk for the period 2015-2022. The research method used is a descriptive associative method. The population consists of secondary data from the financial statements of PT Harum Energy, Tbk. The sample taken used non-probability sampling with purpose sampling method with specific criteria, see the quarterly financial reports of PT Harum Energy, Tbk for the period 2015-2022. To test the influence analysis, Pearson product moment correlation analysis, coefficient of determination analysis, multiple linear regression analysis and t-test and F-test hypothesis testing were applied. The results of the investigation demonstrate that the value of the correlation between working capital turnover and (roi) is -0,193 the correlation value of this falls into the extremely low group, current ratio to return on investment is 0,251 It falls under the low group. The outcomes of the determination analysis show that the quantity of the independent variables influence and contribution (working capital turnover and current ratio) to the dependent variable (return on investment) is 25% and the remainder 75% is affected by additional factors that the author did not look into

ANALISIS PERPUTARAN MODAL KERJA PADA PT. MAYORA INDAH TBK

The aim of this research is to analyze PT Mayora Indah, Tbk on the working capital turnover ratio. This research uses a descriptive type with a quantitative approach. This research uses a purposive sampling technique and uses profit and loss financial reports consisting of sales reports, initial working capital and final working capital from 2013 to 2022 as the sample. First, the latest financial report data, and second, data for a ten-year period, specifically 2013–2022, is used as a standard. The analysis used is SPSS version 22 software which includes Statistical Analysis and One Sample Test. This research shows that the working capital turnover ratio is six times lower than expected.

An Analysis of Utility Capital (In)efficiency

Determining the optimal allocation of financial resources to support growth in demand and improve operational efficiency is a strategic and intricate challenge for utilities. Unlike other industries in which return on invested capital (ROIC) and capital turnover ratio are standard metrics of capital efficiency, the utility sector operates under unique regulatory constraints that render these measures less applicable.

PENGARUH PERPUTARAN MODAL KERJA, PERPUTARAN PERSEDIAAN DAN PERPUTARAN PIUTANG TERHADAP PROFITABILITAS

The phenomenon of declining profitability of manufacturing companies from 2018-2020 causes investors to need to know the company's activities through the working capital turnover ratio, inventory turnover, accounts receivable turnover. Therefore, this study aims to determine the effect of working capital turnover, inventory turnover, accounts receivable turnover on profitability in manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020. The method applied to process research data is a quantitative-descriptive method with data from the financial statements of the manufacturing sector from 2018-2020. From the results of multiple regression analysis using SPSS 25.0, it is known that working capital turnover has a significant negative effect on profitability. Meanwhile, inventory turnover has no significant negative effect on profitability. Accounts Receivable Turnover has no significant positive effect on profitability.

Effect of GST on WCM and Profitability of FMCG Sector in India

Working capital primarily consists of a company’s current assets, or the part of its financial resources that are converted from one kind of resource to another as operations are carried out on a daily basis. Working capital management is regarded as a key component of a company’s profitability. This study examines the working capital relationship with firm’s profitability. An optimal working capital is essential for enhancing the value of an organization. The impact of GST is significantly evident on all transactions of FMCG sectors, especially during stock transfer between two branches of a company, during which period the funds get blocked. This study considered 55 FMCG manufacturing firms, listed in BSE for a period of 12 years starting from 2012 to 2023. Multiple regression model was used to test the hypothesis. The study established a low working capital turnover ratio, which indicates quick realization of inventory, and creates the demand for funds to procure more stock for production purpose. The working capital turnover was used to gauge aggressive investing practices. An aggressive investment strategy is indicated by a low working capital turnover ratio, and a conservative strategy is indicated by a high ratio.

Beyond "Blind Spots": Illuminating Financial Pathways for Thriving Agrotourism as a Family Business

Purpose: This scientific research study aims to highlight the management of blind spots in agrotourism with the clear goal of helping farmers by offering them useful financial ratio analysis. Design/Methodology/Approach: Conducted in-depth interviews with agrotourism owners and conducted a comprehensive review of existing academic literature, industry reports, and government publications on financial management in family-run businesses and agrotourism. Findings: By acknowledging and addressing core "blind spots," family-run agrotourism businesses can cultivate a culture of financial awareness and proactive planning. The project appears to have a benefit-cost ratio (1.478) that is positive, meaning that benefits exceed expenses. Given the high internal rate of return (45.56%), the investment may out to be quite beneficial. The project's financial viability is further supported by the profitability index (1.37), which is higher than 1. Practical Implication: We have analyzed financial ratios, such as profitability index, benefit cost ratio, payback period ratio, current ratio, net profit margin, fixed turnover assets ratio, Internal rate of return, working capital turnover ratio, return on investment, gross margin etc. to assess the profitability and performance of the agrotourism. In order to maximize revenue from agrotourism, we monitored a number of factors before calculating break-even analysis. These included financial risks, profitable revenue streams, and seasonal variations in demand and income during off-peak seasons, off-farm income, and operating costs. This type of all analysis useful for avoid blind spots in agrotourism. Originality/Value: Offering concrete strategies and frameworks tailored to family agrotourism business can directly benefit practitioners, enhancing their financial resilience and contributing to business success.

STUDY ON MANAGEMENT OF WORKING CAPITAL OF COFORGE LTD

The project report provides a comprehensive analysis of working capital management at Coforge IT Solutions Ltd., emphasizing the practical experience gained in a corporate setting. The report outlines the finance department’s functions, divisional structure, and decision-making processes related to working capital management. Key aspects such as the relationship between a company’s short-term assets and liabilities, and the goal of ensuring sufficient cash flow for operational expenses and debt obligations are discussed. The report details the use of working capital in various aspects of the company’s operations, including raw materials, work in progress, finished goods, inventories, sundry debtors, and day-to-day cash requirements. Furthermore, the report includes a detailed analysis of financial ratios over the last five years, such as working capital turnover ratio, quick ratio, current ratio, and inventory turnover ratio. It concludes that Coforge IT Solutions Ltd. Effectively manages its working capital, with all departments working in coordination. However, the report also provides suggestions for further improvement based on the project study, aiming to enhance the company’s progress. The period considered for the study is five years i.e from Financial year 2018-19 to 2022-23. The research methodology adopted for this study is both primary and secondary of data which include annual reports & websites, questionnaire, phone call interview & face to face meeting. This project tries to evaluate how the management of working capital is done in Coforge IT Solutions Ltd. Through Intra Firm Ratio Analysis and comparative Statement Analysis. The Study of working capital management has shown that Coforge IT Solutions Limited has a fairly strong working capital position. The company is also enjoying reasonable profits.

THE MICROECONOMIC DETERMINANTS OF THE PERFORMANCE OF LARGE COMPANIES: CASE OF ALGERIAN COMPANIES

This research aims to identify and study the internal factors that can influence the financial performance of large Algerian companies and make them sustainable. This study is based on a sample of 78 large Algerian companies operating in four sectors: construction, trade, industry and services, over a period of four years from 2018 to 2021. For this purpose, we used the panel data regression method that takes into account both individual and temporal dimensions. The results of the statistical and econometric analysis showed that the debt ratios play negatively and very significantly on the economic profitability of large Algerian firms, it is also the case for the tangibility of assets, the sectors of activity, the public sector and the size of the firm. However, the capital turnover ratio and the age of the companies act favorably and significantly on their profitability. Self-financing, liquidity and the sector of activity present insignificant coefficients.

Analysis of Cost Control, Working Capital Turnover, and Economic Profitability at PT Sampoerna Agro Tbk

This research aims to analyze the level of cost control ratio, working capital turnover and economic profitability at the company PT Sampoerna Agro Tbk. Financial report data from 2015 to 2019 was collected using documentation techniques. Data were analyzed using a descriptive approach. Research findings prove that from 2015 to 2019 the cost control ratio was categorized as efficient with an average of 33.41% and was above the industry average. However, in the same period, the working capital turnover ratio and economic profitability ratio respectively averaged 2.994 and 5.64% and were categorized as unfavorable because they were below the industry average.

A Study On Working Capital Management With Special Reference To Oil India Limited

Administration of Working Capital is aessential chore for every manager in an organization, because it directly affects the liquidity and profitability of an organization. The present study examines the importance of working capital management and its impact on profitability of Oil India Limited. A few important ratios have been measured for prominence the effectiveness of working capital management. Pearson’s simple correlation coefficient has been applied for measuring the degree of relationship between the working capital management and profitability. The results inferred that out of eight ratios relating to working capital management, four ratios, viz., Current Ratio, Current Assets to Total Assets Ratio, Current Assets to Sales Ratio, and Cash Turnover Ratio, registered positive association with the selected profitability ratio (ROI), and the remaining ratios like Debtors Turnover Ratio, Inventory Turnover Ratio, Working Capital Turnover Ratio and Quick Ratio witnessed a negative association with the selected profitability ratio.

Working Capital Turnover Ratio: A Managerial Perspective

This study aims to introduce another perspective to better understand working capital turnover ratio – a financial ratio that has been widely used in assessing working capital efficiency of a company. Using a true experimental and a simulation design method like simple business transactions, we find that this formula gives different figures. Management, therefore, may need to aware that the working capital turnover might be beneficial for analysts, but it may be not for financial managers. It provides different meaning as well as its relevancy for money management.

The Influence of Working Capital Turnover and Debt to Equity Ratio on Return on Asset

The Covid-19 pandemic in 2020 caused the performance of the pharmaceutical subsector to fluctuate. From these results, it can be seen that the Return on Assets of pharmaceutical subsector companies has decreased and Working Capital Turnover has also decreased. The low working capital turnover was due to a decrease in current assets and an increase in current debt used to finance company projects. A low working capital turnover ratio means that working capital processing is not running well, whereas a high working capital turnover ratio means that the company's working capital is functioning effectively. This research aims to know the influence of Working Capital Turnover and debt-debt-equity ratio on Return on Assets in companies' subsector pharmacy period 2017-2022. Data analysis techniques used that is analysis Descriptive and Verifiable using the Assumption Test Classic, Multiple Linear Regression Test, Analysis Coefficient Correlation, Analysis Coefficient Determination, and Hypothesis Testing. The results of this research show that the Working Capital Turnover Variable has partially no influence on the Return on Assets and the Debt to Equity Ratio variable has Partial influential negatively on the Return on Assets Overall Simultaneous Working Capital Turnover and Debt to Equity Ratio affect the Return on Assets.

Liquidity and Activity Analysis on Profitability at PT Eastparc Hotel TBK 2019-2021 (Pandemic Conditions)

The COVID-19 pandemic has had a continuous impact on various sectors, including the economic and tourism sectors, which has caused a decline in production, consumption, and operations in all aspects including maintaining the company's existence and safe and stable profitability. This study aims to analyze profitability using methods from liquidity ratios and activity ratios based on PT Eastparc Hotel Tbk's financial statements from 2019-2021. Data collection method through theory from several literature reviews with time series data collection techniques. The data analysis method used is descriptive quantitative using financial ratio analysis tools, with a research period of the last 3 years (2019 – 2021). The results of the analysis of CR's liquidity ratio for 3 years during the pandemic show that the company PT Eastparc Hotel Tbk has not been able to pay debts that must be immediately met with current assets. QR and CAR show that the company's condition is not good in 2021 This condition means that the company still needs time to sell some of its other current assets to pay its obligations. The results of the Activity ratio show that the company's performance is not good and able to maximize the capacity of its fixed assets. Meanwhile, inventory turnover shows good company conditions in maximizing inventory so as not to accumulate in warehouses in excess quantities (productive) increasing profitability. Meanwhile, the working capital turnover ratio in 2019 was not good, but there were improvements in the last two periods, namely 2020 and 2021. The results of the financial ratio analysis show that PT Eastparc Tbk.'s financial performance during the 3 periods of the pandemic was quite good, after improving its ability to pay short-term debt through the sale of securities, collecting even though inventory turnover was slow and had a relationship in line with the decline in profitability generated by the company.

Research Mapping of Working Capital Turnover (WCT) Ratio in Islamic and Conventional Banking: Vosviewer Bibliometric Study and Literature Review

Purpose - This study aims to determine the research mapping regarding the Working Capital Turnover (WCT) ratio in Islamic and Conventional Banking using a mix-method approach, namely the VOSviewer bibliometric study and literature review.
 Research Method – Data analysis techniques include: (1) mapping the distribution of journal publications around the WCT ratio; (2) mapping the results of the VOSviewer bibliometric visualization around the WCT ratio based on the number of clusters and their items; and (3) mapping research topics around the WCT ratio using a literature review study.
 Findings – The results showed that: (1) based on the distribution of journal publications, there were 89 journal publications regarding the WCT ratio; (2) based on the mapping of the VOSviewer bibliometric study, the network visualization results around the WCT ratio are divided into 6 clusters and 130 topic items; (3) based on the mapping of literature review studies, there are 19 topics around the WCT ratio.
 Implication - The implications and contributions of this research are to map research topics around WCT ratios in Islamic and Conventional Banking which are often or rarely researched by researchers so that they can be a reference for subsequent researchers.

A STUDY ON WORKING CAPITAL MANAGEMENT” AT MUSASHI, AUTO PARTS INDIA PVT LTD, DODDABALLAPUR

Working capital management is a critical aspect of financial, management for businesses of all sizes and industries. This paper provides an overview, of the concept, of working capital, its components, and its significance in ensuring the smooth operation and financial, stability of a company. The primary objective of working capital management is to strike a balance between the current assets, and current liabilities, confirming that a company has sufficient liquidity to meet its short-term obligations while optimizing its use of resources. This paper delves into the various components of working capital, including cash, accounts receivable, inventory, and accounts payable. It explores strategies, and techniques that businesses can employ to effectively manage these components, such as cash flow, forecasting, inventory control, and credit management. The paper also discusses the role of technology, and financial tools in improving working capital, management processes Keywords: Motaal’s Comprehensive Test , Working Capital , Current Ratio , Working Capital Turnover Ratio , Net profit to Current Assets

Analisis Manajemen Modal Kerja (Studi Kasus PT Bank Tabungan Negara Tbk Tahun 2019-2022)

Working capital management refers to two concepts: gross working capital, which is the total current assets minus current liabilities, and net working capital, which is the difference between current assets minus current liabilities. This study uses a descriptive method with a quantitative approach. The purpose of working capital management is to ensure the availability of sufficient net working capital to ensure the company's liquidity. The . fluctuations in the 2019-2022 period. These fluctuations occur because net working capital has increased and decreased, but total assets over the past 4 years have increased. The bank can suppress its current liabilities in order to increase the bank's income as a result, bank BTN has stable current liabilities. in 2019 the capital turnover ratio was higher than the capital turnover ratio that occurred in 2020, 2021 and 2022. This right means that liquidity that occurred in 2019 was indicated to be lower than in 2020, 2021 and 2022.

Working Capital Management and Profitability of Commercial Banks in Nepal

This paper purposes to analyze effects of working capital management on profitability of commercial banks. Empirical data utilized to explores the association between of working capital management and profitability indicators. Based on empirical data, some major financial indicators, credit to deposit ratio, cash reserve ratio, cash and bank balance to total deposits ratio, working capital turnover ratio and liquidity ratios considered as an independent ratio and return on assets, return on equity, and net profit margin as dependent ratios were calculated. Among 20 of the commercial banks of Nepal, only seven commercial banks are taken as sample for the research work. Data were accumulated from secondary data of annual report of model bank and central bank from 2012 to 2022 by the judgmental sampling. Major financial ratios and statistical tools were utilized for the analysis. Descriptive and inferential statistical tools utilized to obtain outcome. In this study, three regression models were tested, and the ROA, ROE, and NPM models were shown to be statistically significant. In the ROA, ROE, and NPM models, respectively, 41%, 52%, and 55% of the sample variation is explained by independent variables.

A COMPARATIVE STUDY ON FINANCIAL ANALYSIS OF RAMCOIND & HIL

Cement industry is very important industry in India because it is contributing in India's infrastructural and industrial development. Cement industry is contributing almost 1.2% of GDP and 0.5 million employment. So this study entitled “A comparative study on financial analysis of RAMCOIND & HIL” is done to know about the financial condition, profitability, solvency, liquidity and working capital efficiency of these cement companies. From this study, it was found that working capital growth of both company is satisfactory but working capital turnover ratio of HIL is not good. Liquidity of both companies is not good. Profitability of HIL is better than RAMCOIND but solvency of HIL is not good.

지방도시개발공사의 자산회전율 분석

The government is proposing to promote structural reform, strengthen financial soundness, strengthen public-private cooperation, and reorganize the management system in the direction of innovation of local public institutions. In order to strengthen financial soundness, this study analyzed the asset turnover rate over the past 10 years for local development corporations, which account for the largest proportion among local public enterprises, and the analysis results are as follows. First, the asset turnover rate of the urban development corporation is relatively low compared to that of domestic private companies or foreign similar companies. Second, the performance of asset turnover by type is the highest return on equity, followed by non-current asset turnover, current asset turnover, and total asset turnover ratio. Third, as a result of dividing metropolitan cities and metropolitan provinces, it was analyzed that the level of turnover ratios in metropolitan provinces was relatively higher than that of metropolitan cities in all asset turnover indicators. Therefore, it is necessary to develop and apply an indicator to determine whether equity capital is undevervalued in relation to equity capital turnover ratio, and consider increasing the weight of management evaluation on the total asset turnover index. It is necessary to strengthen measures to utilize cashable assets in various ways, and to verify whether asset turnover indicators are efficiently managed in mid-to long-term financial management plans in management evaluation indicators.

Analisis Prediksi Kebangkrutan Menggunakan Metode Altman Z-Score Pada PT. Dua Sahabat Sejati Borneo

The aim of this research is to analyze bankruptcy prediction using the Altman Z-Score method at PT. DSSB for the 2019-2021 period. This type of research is descriptive quantitative. Using secondary data with the research population of the financial statements of PT. DSSB period 2019–2021. The research sample is the balance sheet financial statements and profit/loss reports for the 2019–2021 period. Data analysis used analysis of financial performance ratios and bankruptcy prediction analysis Altman Z-Score (Modified Altman). The results show that from the calculation of financial performance, the liquidity ratio is below the industry standard due to an increase in trade payables in each period. The activity ratio on the company's total turnover ratio can maximize the use of assets, the working capital turnover ratio shows a negative number because the working capital owned is not enough to finance sales activities. The profitability ratio is below the industry standard due to the high cost of goods sold and high general administrative costs, as well as other expenses. In calculating the Z-Score analysis, it is always in a dangerous zone, which is a condition where a company experiences financial difficulties with high risk.
 Keywords: Financial Performance, Bankruptcy Prediction, Altman Z-Score