The Effect of Cash Turnover and Inventory Turnover on Profitability (Survey of Automotive Companies Listed on the Indonesia Stock Exchange 2015-2019)

Abstract

Every company must have the same main goal, namely to get maximum profit. The purpose of
this study was to determine whether there is an effect of cash turnover and inventory turnover
on profitability. The research was conducted at automotive companies for the period 2015-
2019. The data in this study were obtained from the Indonesia Stock Exchange. The
population of this study was 13 (thirteen) companies and samples that met the criteria were 5
(five) companies. The method used was purposive sampling. The data analysis technique used
is simultaneous test (F test), and partial test (T test). The dependent variable in this study is
profitability, while the independent variable is cash turnover and inventory turnover. The
research results on the simultaneous test show that cash turnover and inventory turnover
together do not affect profitability indicated by a sig value of 0.306 > 0.05. meanwhile, the
result of the partial test shows that: (1) Cash turnover has not significant effect on
profitability as indicated by the sig value of 0.602 > 0.05. (2) Inventory turnover has not
significant effect profitability, this indicated by a sig value of 0.300 > 0.05.