PROFIT: Jurnal Administrasi Bisnis

Vol. 17. No. 1, 2023

e ISSN: 2338-4654
p ISSN: 1978-743 X
https://profit.ub.ac.id

The Influence of Working Capital to Total Asset, Debt to Equity Ratio,

And Inventory Turnover Ratio towards Profit Growth In Indonesia

Bernadetha Eveline Gabriella Purba1*, Nila Firdausi Nuzula2, Reika Happy Sugiastusti3
Universitas Brawijaya, Malang, Jawa Timur, Indonesia1,2,3
bernadethevelin@student.ub.ac.id1, nilafia@ub.ac.id2, reikahappy.s@ub.ac.id3

ABSTRACT
This research used Working Capital to Total Asset (WCTA), Debt to Equity Ratio (DER), and
Inventory Turnover Ratio (IT) as independent variables. This research’s goals are to know and to
explain the influence of WCTA on Profit Growth, the influence of DER on Profit Growth, the influence
of IT on Profit Growth and the influence of WCTA, DER, and IT simultaneously on Profit Growth. The
background of this research is the importance of companies to enhance profit from time to time as a
form of responsibility to the Investor. This study is an explanatory research with quantitative approach.
The object of this research is food and beverage companies that listed in Indonesia Stock Exchange
(IDX) period 2017-2020. The sample selection is a purposive sampling and as a result, 16 companies
were chosen from total population of 30 companies. The results of this research show that the influence
of WCTA, DER, and IT simultaneously were significant on Profit Growth, and the influence IT also
showed a significant impact on Profit Growth even though in the different direction. On the otherhands,
WCTA and DER partially had an insignificantly influence on Profit Growth.

Keywords: Working Capital to Total Asset (WCTA), Debt to Equity Ratio (DER), Inventory Turnover
Ratio (IT), and Profit Growth.

ABSTRAK
Penelitian ini menggunakan variabel independent yang terdiri atas Working Capital to Total Asset
(WCTA), Debt to Equity Ratio (DER), dan Inventory Turnover Ratio (IT). Penelitian ini bertujuan untuk
mengetahui dan menjelaskan: Pengaruh WCTA secara parsial terhadap pertumbuhan laba, Pengaruh
DER secara parsial terhadap pertumbuhan laba, Pengaruh IT secara parsial terhadap pertumbuhan laba
dan Pengaruh WCTA, DER, dan IT secara simultan terhadap pertumbuhan laba. Latar belakang dari
penelitian ini adalah pentingnya bagi perusahaan dalam meningkatkan keuntungan (laba) dari waktu ke
waktu sebagai bentuk tanggungjawab kepada investor. Objek dalam penelitian ini ada perusahaan
makanan dan minuman yang telah terdaftar di Bursa Efek Indonesia (BEI) periode 2017-2020. Proses
pengambilan sampel menggunakan syarat tertentu, dan hasilnya terdapat 16 perusahaan terpilih dari
total 30 perusahaan. Jenis penelitian dalam penelitian ini adalah penelitian penjelasan dengan
menggunakan pendekatan kuantitatif. Hasil dari penelitian ini menunjukkan bahwa: Pengaruh WCTA
secara parsial menunjukkan tidak signifikan dan bernilai negatif terhadap pertumbuhan laba, Pengaruh
DER secara parsial menunjukkan tidak signifikan dan bernilai negatif terhadap pertumbuhan laba,
Pengaruh IT secara parsial menunjukkan signifikan dan bernilai positif terhadap pertumbuhan laba dan
Pengaruh WCTA, DER, dan IT secara simultan menunjukkan signifikan dan bernilai positif terhadap
pertumbuhan laba.

Kata Kunci: Working Capital to Total Asset (WCTA), Debt to Equity Ratio (DER), Inventory
Turnover Ratio (IT), dan Pertumbuhan Laba.

* Corresponding author : E-mail : bernadethevelin@student.ub.ac.id

Profit: Jurnal Administrasi Bisnis | Volume. 17 No. 1 2023| 1

1. INTRODUCTION
Harjito and Martono (2014) stated that
there are three (3) goals in creating a business: to
achieve maximum profit, to prosper the
company owner or shareholders, and to
maximize company value. Profit is a reward for
the company's efforts in producing goods and
services (Mery, 2017). Profit has an important
role for the company in financing the company's
operations. The company is expected to make a
profit and generate profit growth. Soebangkit
(2016) explained that profit growth is a ratio that
shows the company's ability to increase net
income compared to the previous year.
Companies have an obligation to have
good performance as a form of corporate
responsibility to stakeholders, especially
investors. The quality of company performance
can be seen from the company's ability to print
or generate profits in a period. Investors as
owners of capital expect the company able to
manage the funds invested properly so that the
company's profits can increase. The increase in
company profits (earnings growth) can
determine the amount of return given by the
company to investors (Brigham & Houston,
2014:30) . In addition, good profit growth can be
the basis for decisions for potential investors to
invest in the company.
Investor Development Average
355,98
500 181,53 199,75
4,3
0
2017 2018 2019 2020
Figure 2 Average of Investor Development
Source: Company Annual Report, data
processed by researchers, 2022.
F&B Profit Growth Average
0 study will use the Inventory Turnover Ratio
2017 2018 2019 2020
-2
Figure 1 Profit Growth Average
Source: Company Annual Report, data
processed by researchers, 2022.
The data above shows that there is a
difference between the development of investors
in food and beverage companies and the
Profit: Jurnal Administrasi Bisnis | Volume. 17 No. 1 2023|
realization of profit growth that occurs in the
company. The average investor has increased
from year to year, while the average profit
growth has decreased. Investors have the hope
that the capital invested in the form of assets
within a certain period can provide an increase
in income from the investment activities carried
out (Hartono, 2017). Investors can see the
company's profit growth by analyzing the
company's financial statements. Prihadi (2010)
stated that financial statement analysis is a
technique for analyzing associated data that
provides useful estimates and conclusions for
businesses. This analysis can be done by using
financial ratios that compare one financial
statement item with other financial items that
have a relevant relationship.
Liquidity ratio is a ratio that measures the
company's ability to meet its short-term
obligations that are due (Gitman & Zutter,
2015:119) . This study will use Working Capital
to Total Assets (WCTA) to measure the level of
company liquidity. WCTA measures a
company's ability to fulfil its obligations and
purchase assets to become a source of company
income (Nelson, 2019:462).
Leverage ratio according to Soebangkit
(2016) is a ratio used to measure how far the
company is financed by debt. The low level of
leverage ratio indicates that the proportion of the
use of debt in funding sources is also low. In this
study, we will use the Debt to Equity Ratio
(DER) as a proxy to measure the leverage ratio
to profit growth. DER is a ratio that measures the
proportion of the use of total liabilities (debt) to
the total equity used in financing the company's
activities (Gitman and Zutter, 2015:126).
Activity Ratio is a ratio that measures the
speed of conversion from various accounts into
sales or cash, both cash inflows and cash
outflows (Gitman and Zutter, 2015:121) . This
proxy to measure the level of company activity.
Inventory Turnover Ratio (IT) is a ratio that
measures the level of inventory turnover in a
period by calculating the cost of goods sold
compared to the average inventory. Inventory is
an important element for the ongoing operations
of the company and involves a large amount of
working capital.
Based on the above background, the
researchers are interested in conducting research
2
with the title "Analysis of the Effect of
Working Capital to Total Assets, Debt to Equity
Ratio, and Inventory Turnover Ratio on Profit
Growth (Study on Food and Beverages Sub -
Sector Companies listed on the Indonesia
Stock Exchange for the 2017 period). -2020)”.
2. LITERATURE REVIEW
a. Signalling Theory
Signal are actions taken by the company
in providing instructions to investors about how
management views the company's prospects
(Brigham & Houston, 2014:439) . Kurniawan &
Mawardi (2017) add that this signal contains
information about the actions that have been
taken management in order to realize the wishes
of the owner. Investors can freely interpret or
translate the information received as a good
signal (good news) when the company's profits
increase. On the other hand, a bad signal (bad
news) is indicated by a decrease in net profit
earned by the company (Hapsari, 2007) .
b. Financial Ratio
Kasmir (2010:110) mentioned that
financial ratio is an index that compares the
numbers contained in the financial statements
and is obtained by dividing one number by
another.
c. Liquidity Ratio
Subramanyam (2014) said that Liquidity
ratio is the company's ability to generate cash to
meet short-term obligations and depends on the
company's cash flows and components of current
assets and liabilities. In this study, liquidity ratio
was calculated through the WCTA.
Working Capital to Total Asset (WCTA)
WCTA is used to measure the level of
company’s liquidity. WCTA measures the
company’s ability to meet its obligations and
purchase assets in order to become a liquid and
non-liquid resource (Nelson, 2019:462)
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑊𝐶𝑇𝐴 =
𝐴𝑠𝑠𝑒𝑡𝑠
d. Leverage Ratio
Adha & Sulasmiyati (2017) described that
leverage is the ratio used to describe the
company's ability to use fixed cost assets or
Profit: Jurnal Administrasi Bisnis | Volume. 17 No. 1 2023|
funds to increase the level of income (return) for
company owners. The leverage ratio is a ratio
that measures how much debt is used in
company spending (Hasanah, 2019) . In this
study, leverage ratio was calculated through the
DER.
Debt to Equity Ratio (DER)
DER is a ratio that measures the
proportion of debt to capital (equity). This
calculation is used to determine the use of debt
as external funds with capital as the company’s
internal funds (Subramanyam, 2014:564).
𝐷𝑒𝑏𝑡
𝐷𝐸𝑅 =
𝐸𝑞𝑢𝑖𝑡𝑦
e. Activity Ratio
Gitman & Zutter (2015) , activity ratio is
a ratio that measures the speed of conversion
from various accounts into sales or cash as well
as cash inflows and cash outflows. In this study,
activity ratio was calculated through the IT.
Inventory Turnover Ratio (IT)
IT measures the average rate of speed at
which inventories move through and out of a
company. This ratio will compare the total Cost
of Goods Sold (COGS) to average inventory
(Subramanyam, 2014:555).
𝐶𝑂𝐺𝑆
𝐼𝑇 =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
f. Profit Growth
Profit growth is a ratio that shows the
company's ability to increase net income
compared to the previous year (Harahap, 2011).
Profit 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑡 − 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑡−1
=
Growth 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑡−1
g. Hypothesis Development
1. WCTA has influence towards profit
growth
WCTA is ratio that shows the working
capital ratio to the total assets of the company.
WCTA measures ability company in fulfilling its
obligations and buying assets
in order to become liquid and non-liquid
resources (Nelson, 2019). Businesses in their
3
operations generate current assets in excess of
current debt, the highest level of corporate
liquidity. The higher the level of liquidity, the
smoother the company’s transactions to increase
sales. As sales increase, then the company’s
profits will also increase.
2. DER has influence towards profit growth
Debt as a loan of money given by creditors
when repayment is made by the debtor by
regularly paying the principal and interest on the
loan (Masdupi & Rahmiati, 2014). The higher
the DER value will show the higher the use of
debt in operational financing company.
3. IT has influence towards profit growth
Inventory refers to merchandise or goods
purchased by the company for resale (Hapsari,
2007). Stock in food and beverage companies
have an important role in the production process.
Food and beverage companies use a series of
production processes to change raw materials
into food or other products for consumption by
consumers.
The higher the Inventory Turnover Ratio,
the better the business will be at managing its
inventory. This also has an impact on the
company’s performance as it is considered a
business sale have gone well. On the other hand,
the lower the inventory turnover rate, the lower
the level of efficiency of the company’s
inventory management. This will have bad
impact on the company because it will show that
the greater the cost of maintaining inventory will
be borne by the company.
4. WCTA, DER, and IT together have
influence towards profit growth
Inventory is a component of current assets
that plays an important role in the survival of the
company, especially food and beverage
companies. The business activities of food and
beverage companies are processing raw
materials into semi-finished goods and finished
goods for consumption by consumers. In this
food processing process, it does not only use one
source of raw material but with various sources
of raw materials. This causes the level of
inventory
management in the warehouse to store raw
materials and finished goods to be complex
(Liang, 2013). The role of working capital in the
company is needed to finance the company’s
operations. One of the roles of working capital is
Profit: Jurnal Administrasi Bisnis | Volume. 17 No. 1 2023|
to buy the necessary supplies and pay trade debts
(Susanto et al., 2013). So that the purchase or
investment of inventory plays a role influencing
the amount of working capital used by the
company (Prihadi, 2010:246).
Trade payables are debts arise due to the
purchase of inventory on credit (Wahyu,
2018:17). Purchases of inventory using the credit
system will increase the amount of inventory in
current assets, as well as add an account payable
component. In the end the purchase of inventory
will affect the total amount of the company’s
liabilities. Based on the explanation above, there
is a relationship between Working Capital to
Total Assets, Debt to Equity Ratio, Inventory
Turnover Ratio partially or simultaneously to
profit growth.
3. RESEARCH METHOD
a. Type of Research
This research uses explanatory research
using a quantitative approach. Explanatory
research is for research that explains the position
of the variables studied and causality between
other variables (Sugiyono, 2017:32) . While the
quantitative approach is the activity of
collecting, processing and presenting data based
on the number of samples tested to answer
hypotheses and develop general principles (Duli,
2019:52). Object of this research is food and
beverage companies that listed in Indonesia
Stock Exchange (IDX) period 2017-2020. There
are 16 companies were selected as the sample of
the research from the total population of 30
companies.
b. Research Sites
The research location in this study is the
IDX (Indonesian Stock Exchange) site and the
sites of each company. The choice of the object
of this research is because the two sites provide
sources of data needed by researchers and have
been audited by the Public Accounting Firm
(KAP) as the company's external auditor.
c. Research Variable
1. Independent Variable
Sugiyono (2017:39) suggests independent
variables as variables that influence or cause
changes to the dependent variable.
X1: Working Capital to Total Asset (WCTA)
WCTA is used to measure the level of
company’s liquidity. WCTA measures the
4
company’s ability to meet its obligations and
purchase assets in order to become a liquid and
non-liquid resource (Nelson, 2019:462)
X2: Debt to Equity Ratio (DER)
DER is a ratio that measures the proportion of
debt to capital (equity). This calculation is used
to determine the use of debt as external funds
with capital as the company’s internal funds
(Subramanyam, 2014:564).
X3: Inventory Turnover Ratio (IT)
IT measures the average rate of speed at which
inventories move through and out of a company.
This ratio will compare the total Cost of Goods
Sold (COGS) to average inventory
(Subramanyam, 2014:555).
2. Dependent Variable
Sugiyono (2017:39) states that the
dependent variable is a variable due to the
independent variable.
Y= Profit Growth
Profit growth is a ratio that expresses the
percentage of profit increase or decrease in profit
in a period (Brigham & Houston, 2014:278).
d. Data Analysis
1. Descriptive Statistical Analysis
Descriptive statistics are statistics used to
analyze or describe data that have been obtained
without drawing conclusions (Mundir, 2012:5).
2. Inferential Statistical Analysis
Inferential statistics are statistics that
are used not only to present data but to draw
conclusions (Mundir, 2012:5).
4. RESULT
a. Normality Test
The normality test is carried out to test
whether in the regression model an independent
and dependent variable has a normal or abnormal
distribution (Ghozali, 2016:132).
Figure 3 Normality Test
Source: Output SPSS, 2022
Profit: Jurnal Administrasi Bisnis | Volume. 17 No. 1 2023|
The picture above shows the normality
test after eliminating extreme data or outlier
data. The results of this test show that the data is
normally distributed because the significance
value is 0.2 or greater than 0.05. Testing the
normality of the data is also carried out using
probability plot graphs and histogram graphs.
Both of these tests indicate that the data is
normally distributed.
b. Multicollinearity Test
Multicollinearity test is a test conducted
to find whether there is a correlation between
independent variables by calculating the value of
VIF and Tolerance (Ghozali, 2016:134).
Figure 4 Multicollinearity Test
Source: Output SPSS, 2022
The figure above shows the VIF value of
the independent variables (WCTA, DER, and
IT) of less than 10. In addition, the tolerance
value for each independent variable is greater
than 0.10. It can be said that the regression
model in this study is free from multicollinearity
symptoms.
c. Autocorrelation Test
Autocorrelation test is a test carried out to
see whether there is a correlation of errors in one
observation with previous observations or not
(Ghozali, 2016:137).
Figure 5 Autocorellation Test
Source: Output SPSS, 2022
This test was conducted with 50 samples
of research data (N) and 3 independent variables
5
(K). The results of this test show the calculated
Durbin Watson value of 2.188. After seeing the
calculated Durbin Watson value, the researcher
saw Durbin Watson in the table with a
significance level of 5%. The Durbin Watson
table shows that the upper limit value (du) is
1.673 and the lower limit value (dl) is 1.4206.
The data does not autocorrelate if it is in du < dw
< 4-du. The test results state that the data is free
from autocorrelation symptoms.
d. Heteroscdasticity Test
Heteroscedasticity test is a test carried out
to test whether in the regression model there is
an inequality of variance from one residual to
another observation (Ghozali, 2016:137) . This
test is carried out using a scatterplot graph.
Figure 6 Heteroscdasticity Test
Source: Output SPSS, 2022
The pictures above show that on the
scatterplot graph spread randomly and do not
form a pattern. It can be said that in this study
free from heteroscedasticity symptoms.
e. Multiple Regression Analysis
Figure 7 Multiple Regression Test
Source: Output SPSS, 2022
1. A constant of 0.023, meaning that if the
values of WCTA, DER, and IT remain
constant, profit growth will move positively
by 0.023.
2. The X1 regression coefficient is -0.135,
meaning that if the WCTA value increases by
one unit and the others are considered
Profit: Jurnal Administrasi Bisnis | Volume. 17 No. 1 2023|
constant, then profit growth will decrease or
move negatively by 0.135.
3. The X2 regression coefficient is -0.207,
meaning that if the DER value increases by
one unit and the others are considered
constant, then profit growth will decrease or
move negatively by 0.207.
4. The X3 regression coefficient is 0.423,
meaning that if the WCTA value increases by
one unit and the others are considered
constant, then profit growth will decrease or
move negatively by 0.423.
f. Partial Test (t test)
Figure 8 Partial Test
Source: Output SPSS, 2022
1. WCTA Variable
The t-test between WCTA and Profit
Growth obtained a t-count value of -0.811 with
a significance value of 0.422. This calculation
shows that the significance value is greater than
the significant level, namely 0.422 > 0.005. The
calculated t value is smaller than the t table,
namely -0.811 < 1.678. Based on the test results
above, the WCTA variable partially has no
significant effect on profit growth.
2. DER Variable
The t-test between DER and Profit
Growth obtained a t-count value of -1.187 with a
significance value of 0.241. This calculation
shows that the significance value is greater than
the significant level, which is 0.241 > 0.05. The
calculated t value is smaller than the t table,
namely -1.187 < 1.678. Based on the test results
above, the DER variable partially has no
significant effect on profit growth.
3. IT Variable
The t-test between IT and Profit
Growth got a t-count value of 2.755 with a
significance value of 0.008. This calculation
6
shows that the significance value is smaller than
the t table, namely 0.008 < 0.05. Based on the
test results above, the IT has no significant effect
on profit growth.
g. Simultaneous Test (F test)
Figure 9 Simultaneous Test
Source: Output SPSS, 2022
The figure above shows a significant
value of 0.034 and a calculated F value of 3.139.
In addition, the picture above shows the value of
df 1 = 3 and df 2 = 46. The results of this
calculation obtained the F table value of 2.81.
Based on the data above, it can be seen that the
significant value of the F test is smaller than the
level of significance, which is 0.034 <0.05. The
calculation above also shows that the calculated
F value is greater than the F table, which is 3.19
> 2.81. The results of this test can be concluded
that the independent variable such as working
capital to total assets, debt to equity ratio and
inventory turnover ratio together have
significant effect towards profit growth.
h. Coefficient of Determination Test (R2)
The test results show the coefficient of
determination (adjusted R2) is 0.116. It can be
said that the independent variables (WCTA,
DER, and IT) can affect the dependent variable
(profit growth) by 11.6% and the remaining
88.4% is influenced by other variables not
discussed in this study.
5. DISCUSSION
a. Influence WCTA towards Profit Growth
The first hypothesis proposed in this study
is that the variable of Working Capital to Total
Asset (WCTA) partially has a significant and
positive effect on Profit Growth. However,
based on the test results show that WCTA has
insignificant and negative effect to Profit
Growth. The cause of the insignificant effect of
WCTA on profit growth is the existence of other
funding sources such as long-term debt (e.g.
bonds) and equity (both internal and external
capital) to purchase assets. These assets ca be in
the form of land, buildings and machinery that
can increase sales productivity an will affect
profit growth. While the resulting negative value
Profit: Jurnal Administrasi Bisnis | Volume. 17 No. 1 2023|
of the regression coefficient indicates that there
is a bad influence of WCTA and profit growth.
An increase of one uit of WCTA will reduce rate
of profit growth. This is because some of the
Working Capital is held back (not rotating) due
to the purchase of assets.
b. Influence DER towards Profit Growth
The second hypothesis proposed in this
study is that the variable of Debt to Equity Ratio
(DER) partially has a significant and negative
effect on Profit Growth. However, based on the
test results show that DER has insignificant and
negative effect to Profit Growth. The cause of
the insignificant DER is because the company’s
debt management has not been able to become a
mechanism in increasing profit growth. The
other cause of insignificant DER is components
in total debt consist of trade payables, lease
payables, bonds payable. The increase or
decrease in the value of trade payables and other
debts does not directly affect profit growth
because these debt do not cause a debt burden for
the company. It can be said that increase in trade
payables in the company’s financial composition
cannot reduce profit receipts.
c. Influence IT towards Profit Growth
The third hypothesis proposed in this
study is that the variable of Inventory Turnover
Ratio (IT) partially has a significant and positive
effect on Profit Growth. The test result above
supports the proposed hypothesis. The higher the
value of the resulting inventory turnover, the
better the company’s ability to convert its
inventory into cash or a source of income. The
company’s efficiency in managing inventor can
avoid losses due to damage and expiration of raw
materials (Liang, 2013). The more damaged
inventory will increase the cost of damaged
materials and cause reduced profit receipts.
d. Influence WCTA, DER, and IT toward
Profit Growth
The fourth hypothesis proposed in this
study is that the variable of WCTA, DER, and IT
simultaneous have a significant effect on Profit
Growth. The test result above supports the
proposed hypothesis. Inventory must be
managed properly so as not to incur damage
costs that can reduce profits. The company will
process its inventory to produce products
according to the required demand. This
production process is not possible to rely on only
7
one component, but many components are
needed that synergize with each other produce a
product. Another important thing needed by the
company is working capital. Working capital
plays a role in financing the company’s
operations. The difference between current
assets and current liabilities will be used by the
company assets such as inventory, land,
buildings, factories, machinery and others that
can support the company’s business (Mulyawan,
2017:163).
It is impossible for the company to rely
solely on internal capital to finance the
company’s operations because the costs required
are very large. This makes the company take a
number of strategic steps to obtain business
funds, such as selling the company’s ownership
assets or issuing debt securities. Each choice
taken from each company will have its
advantages and disadvantages. Companies that
use too much debt can have a bad impact on
company profits (Gitman & Zutter, 2015). Good
management of inventory, working capital, and
debt can have a positive impact on the
company’s profit growth.
The limitation that arises when this
research is carried out is that the researcher
wants to use the latest data, but the limited data
obtained by the research makes the limitation of
the research only carried out in the range of 2017
to 2020. Indeed, by the time the research was
done in mid-2022, many companies had not
published reports of 2021 so it cannot be
included as a sample. In addition, when the
research was conducted, there was a problem
with the normality of the sample data so that it
required data transformation by eliminating
outlier data or extreme data which caused a
reduction in the total research sample. This is
because the research data meets the requirements
of the classical assumption test.
6. CONCLUSION AND
RECOMMENDATION
Conclusion
1. WCTA partially has insignificant and
negative effect on Profit Growth
2. DER partially has insignificant and negative
effect on Profit Growth.
3. IT partially has significant influence and
positive on Profit Growth.
4. WCTA, DER, and IT simultaneously have
significant on Profit Growth.
Profit: Jurnal Administrasi Bisnis | Volume. 17 No. 1 2023|
Recommendation
1. For Companies: it is expected to manage and
improve the effectiveness of working capital,
assets, debt and inventory turnover as well as
possible because these variables have a
positive and significant influence on profit
growth.
2. For Investors: it is expected to be the basis for
making decisions to invest in food and
beverage companies in order to get the
expected return.
3. For the next researchers: it is expected to use
other variable such as Total Asset Turnover,
Account Receivable Turnover which can
contribute to Profit Growth.
REFERENCES
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