Abstract :
Working capital is a company's investment in short
-
term assets in the form of cash, securities,
rec
eivables and inventories were used to meet the company's operations. Working capital is
greatly affected by the company's survival because it required working capital management
which includes all management functions on current assets and liabilities of c
ompanies featured
in the company to be able to finance or operating expenses of the company.
The purpose of this study was to determine the effect of cash turnover, receivables turnover, and
inventory turnover might lend some credence to the profitability
and liquidity. The population is
the entire manufacturing companies listed in Indonesia Stock Exchange. Period in this study was
in 2006
-
2010 with the sampling technique used is purposive sampling.
The data used in this study was to obtain quantitative d
ata from ICMD. The data is then
processed using the SPSS is a computer program used to obtain the results of the classical
assumption test, t
-
test and F
-
test.
The results obtained from this study is the velocity of cash, accounts receivable, and inventor
y
simultaneously affect the profitability of the Adjusted R Square of 10.3 percent. Cash turnover,
receivable, and inventory simultaneously affect the liquidity of the Adjusted R Square of 6.7
percent. With the partial test results show that turnover negat
ively affect the profitability of cash,
receivables and inventory turnover while the positive effect on profitability. In affect the liquidity
of cash turnover, receivables, and inventories each negatively affect liquidity.
Key words : cash turnover, rece
ivables turnover, inventory turnover, profitability, and liquidity