Research Paper
Year: 2020 | Month: December | Volume: 7 | Issue: 12 | Pages: 518-525
Effect of Solvency, Current Ratio and Accounts Receivable Turnover on Profitability in Basic Industrial Companies and Chemicals Listed on the Indonesia Stock Exchange 2015-2019 Period
Hengky Kurniawan1, Ricky Wirawan Khosasih2, Jupriadi P. Simatupang3, Januardin4
1,2,3,4Universitas Prima Indonesia, Indonesia
Corresponding Author: Januardin
ABSTRACT
Industrial development is accompanied by advances in technology and information in Indonesia which make existing companies competitive. The purpose of this study is to determine effect of solvency, current ratio and accounts receivable turnover on profitability in Basic Industrial Companies and Chemicals listed on the Indonesia Stock Exchange 2015-2019 period. The quantitative approach that processes statistical data uses multiple linear regression. Research data collection techniques use documentation. The population of this study is 75 in Basic Industrial Companies and Chemicals Listed on the Indonesia Stock Exchange 2015-2019 period. The sample is 17 companies. The result is that solvency has no an effect on profitability in Basic Industrial Companies and Chemicals Listed on the Indonesia Stock Exchange 2015-2019 period. Current ratio has an effect on profitability in Basic Industrial Companies and Chemicals Listed on the Indonesia Stock Exchange 2015-2019 period. Accounts receivable turnover has an effect on profitability in Basic Industrial Companies and Chemicals Listed on the Indonesia Stock Exchange 2015-2019 period. Solvency, current ratio and accounts receivable turnover have an effect on profitability in Basic Industrial Companies and Chemicals Listed on the Indonesia Stock Exchange 2015-2019 period.
Keywords: Solvency, Current Ratio, Accounts Receivable Turnover, Profitability.
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