Effect of Cash Turnover, Receivables Turnover and Inventory Turnover on The Profitability of Pharmaceutical

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Abstract

The business run by the company aims to create the highest possible profit, this profit is expected to continue to be generated in the short and long term. Investment is very necessary in achieving maximum profit. The investment consists of working capital such as: Cash, Accounts Receivable, and Inventory. In increasing profitability, it is followed by cash turnover, receivables turnover and inventory turnover which can rotate effectively every period. This study aims to examine the effect of Cash Turnover, Receivable Turnover and Inventory Turnover on the profitability of the Pharmaceutical Sub-sector companies listed on the Indonesia Stock Exchange. The sampling technique used in this study was purposive sampling method. The analysis model of this research is Multiple Linear Regression Analysis. The results of the study partially show that Cash Turnover, Accounts Receivable Turnover and Inventory Turnover have no significant effect on the profitability of the pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange. Simultaneous research results show that cash turnover, accounts receivable turnover, and inventory turnover have no significant effect on the profitability of pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange.

Keyword:  Cash Turnover, Inventory Turnover, Profitability, Receivable Turnover