THE EFFECT OF RECEIVABLES TURNOVER, INVENTORY TURNOVER, AND WORKING CAPITAL TURNOVER ON FINANCIAL PERFORMANCE

Abstract

Financial Performance is an analysis that is carried out to be able to see the extent to which the company carries out the company's activities by using the rules of financial implementation properly and correctly (Fahmi, 2012). Analysis of the company's financial performance can be used as material for evaluating the company in generating profits based on the financial activities it performs. This study aims to examine the effect of Receivables Turnover, Inventory Turnover, and Working Capital Turnover on Financial Performance in Industrial Sector Manufacturing Companies Listed on the Indonesia Stock Exchange for the 2020-2023 period. The sample in this study is 161 annual financial statements. This study uses a quantitative approach with the STATA analysis tool. Data analysis techniques include Descriptive Analysis, Classical Assumption Test, Multiple Linear Regression Analysis, Hypothesis Test, and Model Selection Test to test and explain the relationship between research variables. The results of this study show that Receivables Turnover has a significant effect on Financial Performance, Inventory Turnover has no effect on Financial Performance, Working Capital Turnover has no effect on Financial Performance. This research contributes to companies to provide consideration in efforts to improve the company's Financial Performance. The results of this study also provide input to companies on the importance of the Receivables Turnover ratio for improving Financial Performance.