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This study aimed to examine the effect of working capital management on company profitability of the manufacture sector companies listed on Indonesian Stock Exchange in 2011-2015. Population in this study is manufacture sector companies listed on Indonesian Stock Exchange in 2011-2015. The total company obtained for 59 companies that become the sample in this research. The effects of independent variables such as the inventory conversion period, average collection period, payables deferral period and the company's cash conversion cycle on return on assets are examined by panel data analysis methods. The results of this study show that inventory conversion period and average collection period have negative significant relationship with profitability. Payables deferral period and cash conversion cycle have no significant relationship with profitability. Future research should use other independent variables that may affect the profitability of the company, in addition to measuring company profitability can also be proxies with other ratios. |
