Effect of Working Capital Turnover, Leverage and Sales Growth on Profitability of Consumption Industry Companies in IDX

Abstract

This study aims to look at how capital turnover, leverage, and revenue growth affect profitability in consumer goods companies in the IDX. This research relies on secondary data from a population of all consumer goods firms companies in the IDX from 2016 to 2018. The classical assumption test is used for analysis, multiple linear regression is used for another test, and hypothesis testing by using the F-test, t-test, and test R2. The effects of the vector working capital turnover have a substantial impact on performance, while the variables Debt to Equity Ratio (DER) and Growth Ratio (GR) have no significant impact. Furthermore, the results yielded a modified R square value of 0.283, indicating that Working Capital Turnover (WCT) is on the rise.