The Effect of Cash Turnover, Inventory Turnover and Sales Growth on Profitability in food and beverage sector companies listed on the IDX for the period 2017-2019

Abstract

In measuring the usability of the company in the use of its assets, it can use Return On Assets (ROA) because this ratio is usually superior in measuring company profitability because it shows the effectiveness of management in managing activities to generate company income. The higher the ROA level, the higher the productivity of assets in earning profits and vice versa. The food and beverage sector listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019 is the population in this study using the purposive sampling method. There are 72 samples consisting of 26 companies. The research method used is descriptive statistics with panel data regression analysis using E-Views 10 software. From the research that has been done, cash turnover, inventory turnover and sales growth simultaneously have a significant effect on ROA with a probability value of 0.000001. Partially, the Inventory Turnover variable has a probability 0.0000 which indicates that it has a positive and significant effect on ROA. Meanwhile the variables of Cash Turnover and Sales Growth did not have a significant effect on ROA in this sector.

Keywords: cash turnover, inventory turnover, return on assets and sales growth