Abstract :
ABSTRAK
Working capital of a business is very important for business actors. One of the ways in which working capital management can be seen is the effective or non-effective use of existing working capital. The purpose of this study was to determine the effect of working capital on profitability in UMKM in Masamba District, working capital was measured using working capital turnover which includes net sales, current assets and current liabilities. The population in this study was 2910 UMKM in Masamba District. The sample used was taken based on the purposive sampling method, namely financial statements in the form of balance sheets and income for 5 years (2017-2021) from 10 UMKM taken based on criteria. The results of this study indicate that working capital turnover has a positive effect on profitability.
Keywords: Working Capital and Profitability