The Effect of Working Capital Concepts on Net Income in Trading Companies Listed on The Indonesia Stock Exchange in Jakarta 2015-2019

Abstract

This study aims to determine the effect of the concept of working capital on net income in trading companies listed on the Indonesia Stock Exchange in Jakarta in 2015-2019. This study uses a quantitative quantitative approach, aiming to determine the relationship between two or more. The population of this study is the trading sector companies listed on the Indonesia Stock Exchange as many as 84 companies. The sample of this research is 25 companies multiplied by 5 years so that the sample of this research is 125 company data. The analysis technique used is multiple regression analysis. Tests using the t test and F test were conducted to test the partial and simultaneous effect between the independent variable and the dependent variable with the assumption that other variables are considered constant. Based on the partial test, it is known that the Accounts Receivable Turnover (X2) variable has an effect on Net Profit (Y), while the Cash Turnover (X1) and Inventory (X3) variable has no effect on Net Profit (Y). Based on the simultaneous test, the calculated f value is 252.873 with a sig level of 0.000, therefore the sig value is 0.000 < 0.05 and the calculated F value is 252.873 > F table 2.68. This indicates that Ho is accepted so that it can be said that the independent variables are X1, X2 and X3. it simultaneously affects the dependent variable Y. Based on the coefficient of determination test, it is known that the Adjusted R square value is 0.859. This means that the influence of the variables X1, X2, and X3 on the Y variable is 85.9%, while the rest is 0.141 or 14.1% the influence of other variables not included in this study.