Institusion
Sekolah Tinggi Ilmu Ekonomi Perbanas Surabaya
Author
Larantuka, Fransiska Sabrina Hapsari
Subject
657.042 - FINANCIAL ACCOUNTING
Datestamp
2024-07-03 01:52:23
Abstract :
Profit growth is an important consideration for companies that want to succeed and is the main focus for investors, financial analysis and company management. This study aims to determine the effect of inventory turnover, free cash flow, and company size on profit growth in consumer non - cyclicals sector companies listed on the Indonesia Stock Exchange (IDX) for the 2020-2022 period. The data used in this study are secondary data in the form of financial reports taken through the IDX or www.idx.com and the company's website. The method used in this study is purposive sampling using multiple linear regression analysis and obtained 113 companies with a total sample of 224 data. The results of this study indicate that free cash flow and company size had a significant effect on profit growth, inventory turnover had no significant effect on profit growth. Because companies may be able to maintain a stable or growing profit level without changing their inventory management strategies or policies. A company may be successful in maintain high profit margins despite having slow or fast-turnover inventory by setting appropriate selling prices for its products.
Keywords: Profit Growth, Inventory Turnover, Free Cash Flow, and Company Size