THE EFFECT OF CASH CONVERSION CYCLE AND ITS COMPONENTS ON FIRM�S PROFITABILITY: STUDY IN MANUFACTURING FIRMS LISTED IN INDONESIA STOCK EXCHANGE FROM YEAR 2005 TO 2014

MARIA KEISHIA ANGELINA, Bowo Setiyono, S.E., M.Com., Ph.D.

2016 | Skripsi | S1 MANAJEMEN

Penelitian ini bertujuan untuk mengetahui pengaruh arus konversi kas dan komponennya terhadap profitabilitas perusahaan. Terdapat tiga proxy profitabilitas yang digunakan dalam penelitian ini yaitu return on assets, return on equity and gross profit. Sampel yang digunakan dalam penelitian ini terdiri dari 82 perusahaan yang termasuk dalam industri manufaktur di Bursa Efek Indonesia pada tahun 2005 sampai 2015. Berdasarkan hasil analisa regresi, arus konversi kas dan semua komponennya terbukti memiliki pengaruh yang signifikan dan negatif terhadap profitabilitas perusahaan. Dengan kata lain, semakin pendeknya periode arus konversi kas, konversi inventaris, jangka waktu rata-rata penagihan, dan penundaan pembayaran hutang maka semakin tinggi tingkat profitabilitas perusahaan.

In this research, researcher tries to identify whether cash conversion cycle and its components have significant effect towards firm�s profitability. In addition to this, researcher also wants to understand how cash conversion cycle and its component affect firm�s profitability. There are three ratios used as the proxy of profitability which are return on assets, return on equity and gross profit. The sample used in this research consists of 82 manufacturing firms which listed in Indonesia Stock Exchange from year 2005 to 2014. Based on the regression analysis, cash conversion cycle and all its components are proven to have significant and negative effect on firm�s profitability. It means that the shorter the period of cash conversion cycle, inventory conversion period, average collection period and payables defferal period, the higher the profitability of the firm will be.

Kata Kunci : Cash conversion cycle, working capital management, profitability