The Effect of Cash Turnover and Receivable Turnover on Profitability at PT Ace Hardware Indonesia Tbk

Abstract

As we know, the company's main goal is to focus on achieving profitability. Achieving high profitability indicates that the company is able to carry out its operations properly. This can be seen from the company's performance report, namely the income statement and the company's balance sheet. However, there are still many other factors that are not less important in the spotlight in assessing the level of efficiency of the company, among others, seen from the level of accounts receivable turnover and cash turnover rate. The formulation of the problem taken is how the influence of cash and accounts receivable turnover on profitability and which one most influences the profitability between cash and accounts receivable. Data sources are obtained from the four-period financial statements starting from 2015 to 2018 which consist of balance sheets and profit and loss. The data analysis method used is the classic assumption test, multiple linear regression analysis and hypothesis testing. Based on the results of research on the annual financial statements of PT. ACE Hardware Tbk for 4 periods namely 2015 - 2018. Cash turnover variables have a negative but not significant effect on profitability at PT. ACE Hardware Tbk, because it produces a significance of 0.956 > 0.05. The receivable turnover variable also has no significant effect on the profitability of PT. ACE Hardware Tbk, indicated by the results of the significance of 0.068 > 0.05. Both the accounts receivable turnover variable and cash turnover have no effect on profitability at PT. ACE Hardware Tbk.