The Effect of Working Capital and Leverage on Profitability in Coal Mining Companies Listed on The Indonesian Stock Exchange
Randa Dwi Saputra*, Yana Ulfah, Ibnu Abni Lahaya
Economics and Business Faculty, Mulawarman University Jalan Tanah Grogot 1, Samarinda 75119, Indonesia.
*randa.saputra12[at]mhs.feb.unmul.ac.id
Abstract
This study aims to analyze the effect of Working Capital as measured by working capital turnover and Leverage as measured by the debt to equity ratio to the profitability of the company. Company profitability is measured by the return on equity ratio. The research sample is coal mining companies listed on the Indonesia Stock Exchange in 2014, 2015 and 2016. The data collection method used in this study is library research which is useful to obtain an overview or condition or theoretical foundation related to the research title. The statistical method used is multiple linear regression. The results showed that (1) Working Capital has a positive and not significant effect on company profitability; and (2) Leverage has a negative and significant effect on company profitability.
Keywords: Working Capital; Leverage; Profitability
Topic: Manajemen Keuangan