SIMILARITY RESULT OF_THE ANALYSIS OF LIQUIDITY AND ITS EFFECT ON PROFITABILITY, SALES, AND WORKING CAPITAL POLICY IN MANUFACTURING COMPANIES LISTED ON INDONESIA STOCK EXCHANGE

ACHMADY, MUZAKIR and Andriana, Isni and Thamrin, KM. Husni (2023) SIMILARITY RESULT OF_THE ANALYSIS OF LIQUIDITY AND ITS EFFECT ON PROFITABILITY, SALES, AND WORKING CAPITAL POLICY IN MANUFACTURING COMPANIES LISTED ON INDONESIA STOCK EXCHANGE. Turnitin Universitas Sriwijaya.

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Abstract

Purpose – This study aims to analyze the liquidity through cash conversion cycle management and to examine the effect of liquidity on profitability, sales and working capital policy in manufacturing companies listed on Indonesia Stock Exchange in the period 2014-2018. Profitability is proxied by return on asset, sales (Total Sales) and working capital policy (Short-term debt to assets and current assets to total assets). Design/methodology/approach – The population of the study is manufacturing companies listed on Indonesia Stock Exchange. Purposive sampling method used as the sampling method. There are 21 manufacturing companies as the samples of the study. The type of data used in this study is quantitative and data sources of this study is secondary data. Descriptive statistic and simple linear regression analysis used as the research methodology. Findings– The findings in this research are descriptive analysis shows CCC benchmark of manufacturing companies is 95.0590 days with the highest value at 408.98 days and the lowest at - 19.62 days. It is found that CCC has negative and significant effect on return on asset and total sales as well it has positive effect and significant on short-term debt to assets nevertheless CCC has positive but insignificant effect on current assets to total assets. This findings imply that the shorter length of CCC will possibly enhance the profitability and sales as well reduce the dependency on external financing and more productive business activities. Research limitations/implication – This research only analyzes the company’s liquidity condition in terms of cash conversion cycle or dynamic aspects. Another liquidity ration can be used for further research such as current ratio, cash ratio, quick ration and so on. This research also only focuses on manufacturing sector companies. Another sector companies can be included into the further research such as merchandising sector companies and services sector companies. Originality/ Value –The present study contributes to the literature by measuring the liquidity of manufacturing companies through dynamic liquidity perspective (the management of Cash Conversion Cycle) eventhough the most of companies still use classical liquidity perspective through liquidity ratios to evaluate the liquidty. the present research provides the new perspective about liquidity management by considering the time required companies as the assessment of liquidity in manufacturing companies that listed on Indonesia stock exchange.

Item Type:	Other
Uncontrolled Keywords:	Cash Conversion Cycle (CCC), Return on Assets, Total sales, Short-term Debt to Assets (STDA), Current Asset to Total Assets (CATA).
Subjects:	#3 Repository of Lecturer Academic Credit Systems (TPAK) > Articles Access for TPAK (Not Open Sources) #3 Repository of Lecturer Academic Credit Systems (TPAK) > Results of Ithenticate Plagiarism and Similarity Checker
Divisions:	01-Faculty of Economics > 61001-Management (S3)
Depositing User:	Mrs Isni Andriana
Date Deposited:	28 Apr 2023 08:33
Last Modified:	28 Apr 2023 08:33
URI:	http://repository.unsri.ac.id/id/eprint/97814

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