TITLE:               

THE EFFECT OF WORKING CAPITAL TURNOVER (WCT), CASH CONVERSION CYCLE (CCC), FIRM SIZE, SALES GROWTH AND LONG TERM DEBT (LTD) ON PROFITABILITY

 AUTHORS:     

Andriyani Andriyani, Endang Triwidyarti, Krismonika Hidayat, Hersugondo Hersugondo

DOI 10.5110/77. 1711              Page:   214-223       Vol: 19    Issue: 07  Year: 2024

creative commons, cc, character-785334.jpg   

ABSTRACT

The purpose of this study was to test and analyze empirically the effect of working capital turnover (WCT), cash conversion cycle (CCC), firm size, sales growth and long term debt (LTD) on profitability. The object of this research is Indonesian companies listed on the Indonesia Stock Exchange for the period 2019-2023. Sampling using purposive sampling method, where there are 265 companies that meet the criteria. Panel data regression processed using Eviews 12 software. In the model selection test, the Fixed Effect Model was selected as the best model in the test. The results of this study indicate that working capital turnover (WCT), firm size and long term debt have a significant effect on profitability. While cash conversion cycle (CCC) and sales growth do not have a significant effect on profitability. However, the cash flow control variable has a significant effect on profitability, while firm age has no significant effect on profitability.

 Keywords:

working capital turnover, cash conversion cycle, firm size, sales growth, long term debt, cash flow, firm age

Received: 05 July 2024

Accepted: 21 July 2024

Published: 30 July 2024