The Effect of Working Capital Management, Sales Growth on Profitability in Property and Real Estate Companies Listed on the Indonesia Stock Exchange (IDX) in 2019-2022
Nandu Saprudin(1*), Maya Sari(2), and Imas Purnamasari(3)

Universitas Pendidikan Indonesia, Jl. Dr. Setiabudi No.229, Bandung, West Java 40154.
nandusaprudin[at]upi.edu

Abstract

This study aims to determine the effect of working capital management and sales growth on profitability in property and real estate companies listed on the Indonesia Stock Exchange (IDX). The variables used in this study are current assets, current liabilities, and sales growth as independent variables, while Return on Assets (ROA) is used as the dependent variable. The objects used in this research are property and real estate companies listed on the Indonesia Stock Exchange (IDX) where the research period starts from 2019 to 2022. This research is a quantitative causality study usingW the method of multiple linear regression analysis with panel data. The population in this study were 85 property and real estate companies and a sample of 7 property and real estate companies using a purposive sampling technique. The results of the data analysis show that there is a significant influence between the variables of current assets, current liabilities, and sales growth on ROA. Effective working capital management, which is reflected in good management of current assets and current liabilities, can contribute to a higher level of profitability.

Keywords: Working Capital Management, Sales Growth, Profitability

Topic: Financial Management and Accounting