The Effect of Working Capital and Company Size on the Profitability of the Indonesian Sugar Industry

Abstract

The purpose of this study is to determine the influence of Working Capital and Company Size on the Profitability of the Indonesian Sugar Industry. In this study, secondary data is used obtained by downloading published financial statements. The secondary data proposed in this study is time series data. The sampling technique used in this study is the purposive sampling technique and data was obtained from 7 companies for 5 (five) years with a total, 35 observation data. The analysis method used in this study is a prerequisite test consisting of normality test, autocorrelation test, multicollinearity test and hypothesis testing in this study using the T test, F test, determination coefficient test (R2) and multiple linear regression analysis test.

The results of this research show that working capital has a positive but not significant effect on profitability in sugar industry companies in Indonesia. The size of the company has a positive and significant effect on the profitability of sugar industry companies in Indonesia. And working capital and company size simultaneously affect the profitability of sugar industry companies in Indonesia for the 2018-2022 period.