Effect of current ratio, total asset turnover, and size on profitability: Evidence from Indonesia manufacturing companies

Abdul Karim; Endang Tri Widyarti; Aprih Santoso

doi:10.14710/dijb.6.1.2023.57-63

DOI: https://doi.org/10.14710/dijb.6.1.2023.57-63

Effect of current ratio, total asset turnover, and size on profitability: Evidence from Indonesia manufacturing companies

Abdul Karim¹

, Endang Tri Widyarti²

, Aprih Santoso³

¹Department of Accounting, University of Semarang, Indonesia, Indonesia

²Department of Management, Universitas Diponegoro, Indonesia, Indonesia

³Department of Management, University of Semarang, Indonesia, Indonesia

Citation Format:

Abstract

This study aims to look at the influence of current ratio, total asset turnover (TATO), size on profitability empirical studies in manufacturing companies listed on the IDX in 2017-2020. The sample used in this study is an empirical study on manufacturing companies listed on the IDX in 2017-2020. The population in the study was 32 manufacturing companies. The purposive sampling technique used in this study had a sample number of eighteen companies in building manufacturing with a sample of 128 data. The data analysis technique used is multiple linear regression analysis with SPSS 23 software. Data analysis begins with analyzing descriptive statistics, testing classical assumptions, testing research hypotheses. The results of the study prove that current ratio, total asset turnover, and size have a positive and significant effect on the company's Return On Assets.

Fulltext View|Download

Keywords: Curren Ratio(CR), Size; Total Asset Turnover (TATO); Profitability (ROA)

Article Metrics:

Article Info

Section: Articles

Language : EN

In Vol 6, No 1 (2023)

Recent articles

The effect of person-organization fit, person-job fit, and organizational commitment on organizational citizenship behavior: Evidence from employees in the Indonesia public sector Financial literacy, network competency, market orientation and financial performance: A study from Bandung SMEs The effect of ownership structure on social and environmental disclosure in Indonesia More recent articles

Agleintan, E. D. (2019). Pengaruh Perputaran Piutang Dan Perputaran Aktiva Tetap Terhadap Profitabilitas (Pada Perusahaan Perdagangan Eceran yang Terdaftar di Bursa Efek Indonesia Pada Tahun 2013. PRIMANOMICS : Jurnal Ekonomi Dan Bisnis - Vol. 17, No. 3
Alavinasab, S., & Davoudi, E. (2013). Studying the relationship between working capital management and profitability of listed companies in Tehran stock exchange. Business Management Dynamics, 1-8
BEI. (2020). Laporan Keuangan Dan Tahunan Tahun 2017-2020. Diambil kembali dari idx: https://www.idx.co.id/perusahaan-tercatat/laporan-keuangan-dan-tahunan/
Budiang, F. D. (2017). Pengaruh Perputaran Total Aset, Perputaran Piutang Dan Perputaran Persediaan Terhadap ROA Pada Perusahaan Sub Sektor Perdagangan Eceran Yang Terdaftar Di BEI. Jurnal EMBA. Vol.5 No.2
Fahmi, I. (2014). Analisis Laporan Keuangan. Alfabeta
Fahmi, I. (2014). Analisis Laporan Keuangan. Bandung: Alfabeta. Fahmi, I. (2014). Pengantar Manajemen Keuangan. Bandung: Alfabeta
Ghozali, I. (2016). Aplikasi Analisis Multivariete Dengan Program IMB SPSS 23 (Edisi 8) Cetakan ke VIII. Semarang: Universitas Diponegoro
Hery. (2015). Analisis Laporan Keuangan. Edisi 1. Yogyakarta: CAPS
Holly, Najoan. 2016. “Analisis Kinerja Perbankan Ditinjau dari Aspek Profitabilitas dan Efisiensi (Studi Kasus Pada Bank yang Terdaftar di BEI Periode 2012-2014). Jurnal Riset Bisnis dan Manajemen Vol. 4, No. 3, Edisi Khusus Pemasaran & Keuangan 2016: 407-420. Manado
Indriyani, I. D. (2017). Analisis Pengaruh Current Ratio Dan Total Asset Turnover Terhadap Return On Asset (Studi Kasus Pada PT Pelabuhan Indonesia II (Persero) Cabang Pangkalbalam). Jurnal Ilmiah Akuntansi Bisnis & Keuangan (JIABK). Vol. 10, No. 2. ISSN : 2355-9047
Kasmir. (2016). Analisis Laporan Keuangan. Jakarta: PT Raja Grafindo Persada. Nuriyanto. (2019). Analisis Pengaruh Tingkat Pertumbuhan Asset (Asset Growth) Dan Struktur Aktiva Terhadap Profitabilitas (ROA) Dengan Capital Structure Sebagai Variabel Intervening Pada Bank Umum Syariah Di Indonesia Periode 2016-2018. E-Repository IAIN Salatiga
Kasmir (2019). Pengantar Manajemen Keuangan Edisi Kedua. Jakarta: Prenadamedia Group
Prio Galih Raga Prakoso dan Mochammad Chabachib. 2016. Analisis Pengaruh Current Ratio, Size, Debt to Equity Ratio, dan Total Asset Turnover terhadap Devidend Yield dengan Return On Asset sebagai Variabel Intervening. Diponegoro Journal of Marketing, Vol. 5, No. 2, 1-14
Rahmi, H. (2019). Pengaruh Struktur Aktiva Dan Struktur Modal Terhadap Profitabilitas Pada PT Kimia Farma Tbk. Jom Fisip, Vol. 6 : Edisi II
Riyanto, B. (2013). Dasar-Dasar Pembelanjaan Perusahaan. Edisi Keempat Yogyakarta: BPFE-Yogyakarta
Sugiyono. (2013). Metode Penelitian Kuantitatif, Kualitatif Dan R&D. Bandung : Alfabeta
Sugiyono. (2018). Metode Penelitian Kuantitatif . Bandung: Alfabeta
Sunarto dan Budi, Agus Prasetyo, 2009. Pengaruh Leverage, Ukuran dan Pertumbuhan Perusahaan terhadap Profitabilitas. Jurnal Telaah Manajemen Vol. 6 Edisi 1
Syamsudin. 2011. Buku Ajar Farmakoterapi Kardiovaskular Dan Renal. Jakarta: Penerbit Salemba Medika pp 31
Wartono, T. (2018). Pengaruh Current Ratio (CR) Dan Debt To Equity Ratio Terhadap Return on Asset (Studi Pada PT AstraInternasional, Tbk). Jurnal Kreatif: Pemasaran, Sumber Daya Manusia Dan Keuangan, Volume 6 Nomor 2.:

Last update:

No citation recorded.

Last update:

No citation recorded.

Author(s) Rights

In order for Diponegoro International Journal of Business (DIJB) to publish and disseminate research articles, we need publishing rights (transferred from author(s) to publisher). This is determined by a publishing agreement between the author(s) and DIJB. This agreement deals with the transfer or license of the copyright of publishing to DIJB, while authors still retain significant rights to use and share their own published articles. DIJB supports the need for authors to share, disseminate and maximize the impact of their research and these rights, in any databases.

As an author, you have rights to a large range of uses of your article, including use by your employing institute or company. These Author rights can be exercised without the need to obtain specific permission. Authors publishing in DIJB has wide rights to use their works for teaching and scholarly purposes without needing to seek permission, including:

use for classroom teaching by Author or Author's institution and presentation at a meeting or conference and distributing copies to attendees;
use for internal training by the author's company;
distribution to colleagues for their research use;
use in a subsequent compilation of the author's works;
inclusion in a thesis or dissertation;
reuse of portions or extracts from the article in other works (with full acknowledgement of final article);
preparation of derivative works (other than commercial purposes) (with full acknowledgement of final article);
voluntary posting on open web sites operated by author or author’s institution for scholarly purposes,

(but it should follow the open-access license of Creative Common CC-by-SA License).

Authors/readers/third parties can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially, but they must give appropriate credit (the name of the creator and attribution parties (authors detail information), a copyright notice, an open-access license notice, a disclaimer notice, and a link to the material) and provide a link to the license.

Authors/readers/third parties can read, print and download, redistribute or republish the article (e.g. display in a repository), translate the article, download for text and data mining purposes, re-use portions or extracts from the article in other works, sell or re-use for commercial purposes, remix, transform, or build upon the material, they must distribute their contributions under the same license as the original Creative Commons Attribution-ShareAlike (CC BY-SA).

Copyright Transfer Agreement for Publishing (Publishing Right)

The authors submitting a manuscript do so on the understanding that if accepted for publication, the copyright for publishing (publishing right) of the article shall be assigned/transferred to the Department of Management, Faculty of Economics and Business, Universitas Diponegoro as the publisher of DIJB.

Upon acceptance of an article, authors will be asked to complete a 'Copyright Transfer Agreement for Publishing (CTAP)'. An e-mail will be sent to the Corresponding Author confirming receipt of the manuscript together with a CTAP form by the online version of this agreement.

DIJB, the publisher, and the editorial board make every effort to ensure that no wrong or misleading data, opinions or statements be published in the journal. In any way, the contents of the articles and advertisements published in DIJB are sole and exclusive responsibility of their respective authors and advertisers.

Remember, even though we ask for a transfer of copyright for publishing (CTAP), our journal Author(s) retain (or are granted back) significant scholarly rights as mentioned before.

The Copyright Transfer Agreement for Publishing (CTAP) Form can be downloaded here