The Effect of Working Capital Ratio on Profitability of Manufacturing Companies in Indonesia

Abstract

This study aims to determine the influence of work capital ratio on the level of manufacturing company profitability in Indonesia basic and chemical industry subsector for the period of 2012 2017. The type of this research was quantitative with the sampling technique used is Purposive Sampling technique while for data collection in this study carried out with documentaries sourced from financial report data reported on the Indonesia Stock Exchange. Data analysis techniques used multiple linear regression. The data analysis instrument in this study was used classic assumptions quality and hypothesis in this case using partial t test and f test simultaneous. The results of the tests conducted partially showed that CR, DAR and DER had a negative and significant effect on ROA. Whereas in the second dependent variable CR and DER which had a positive and significantly influence ROE, and, DER d had a negative and significant effect on