Moreover, the Effectiveness of Cost Control and Working Capital Turnover simultaneously has a positive and significant effect on Firm Value. pengaruh working capital turnover, sales growth dan cash turnover terhadap net profit margin pada perusahaan manufaktur subsektor logam dan sejenisnya September 2020 DOI: 10.33061/jeku.v20i2. Working Capital Turnover (PMK) has a positive and significant effect on firm value. The results of this study indicate that the Effectiveness of Cost Control (EPB) has a negative and significant effect on firm value. The sample used in this research is purposive sampling technique, classical assumption test consisting of normality test, multicollinearity test, heteroscedasticity test, multiple linear regression test consisting of hypothesis testing, determination test and to prove the research hypothesis. The hypothesis is tested using multiple linear regression. The sample used in this study is secondary data taken from the Indonesia Stock Exchange with 11 companies in 2011 - 2018. Make sure you are financially literate about everything related to your business.This study aims to examine and analyze the Effect of Cost Control Effectiveness and Working Capital Turnover on Firm Value as an intervening variable.The object of this research is food and beverage companies on the Indonesia Stock. Make the process more efficient and smoother so there is no loss of valuable assets like manufacturing time, customers (due to bad experience), or even unnecessary conflict. Working capital turnover ratio is a financial analysis tool used to measure how well a business is using its working capital to support a given sales level. working capital turnover on profitability.Analyze your business spending and cut down expenditure where ever possible. t u rn ove r, the ratio of net re venues to work- ing capital, indicates h ow efficiently a company is using. Pengertian Modal Kerja (Working capital Definition) Apa Itu modal kerja ( working capital ) Ada dua jenis modal kerja, yaitu modal kerja bersih ( net working capital) dan modal kerja kotor ( gross working capital ).Buying goods and materials for them to end up in inventory for a long time is not helpful. Revise your interest rates for different debts where ever possible.Try to reduce costs by finding suppliers and vendors that provide discounts or better value.Timely fulfillment of all the outstanding debt obligations. Working capital turnover is defined as a ratio that measures how effectively a company utilizes its working capital to support its sales and revenue growth.Anda yang ingin membuka bisnis sendiri atau bekerja di bagian keuangan perusahaan harus mengerti apa itu working capital. There are a few ways a company can increase its capital turnover which I have outlined below - Pengetahuan Umum, definisi modal kerja working capital Ada satu istilah dalam dunia bisnis yang harus dipahami, yaitu working capital. It is important to solve this problem as soon as you can so there is no hindrance in the day-to-day operations. So companies should be careful to not ignore this outcome.Ĭompanies with a low turnover ratio have to find ways to increase it. So there is a chance the company becomes insolvent in the near future. The Working Capital Turnover Ratio is used to measure how much revenue is generated per dollar of working capital investment which is, in basic terms. That is the yearly revenue is huge compared to the working capital. This is because a very high ratio implies that a business does not have enough capital to support sales growth. But a very high turnover can be a problem. It means that the capital is flowing in and is being spent on activities to generate more revenue. Special CasesĪ high working capital turnover is overall a good thing. That is when current assets < current liabilities. On the other hand, the capital turnover ratio can also be negative in cases when the working capital itself is negative. Which in turn disallows companies to support their sales initiatives. With the burden of account receivables and mismanaged inventory, the liabilities and bad debts become excessive. Here the company is probably handling too many account receivables, that is the due amount to be paid by a client or customer. That is the company is inefficient at producing revenue. That is the company generates a high revenue price for each dollar of working capital spent.Ī low turnover ratio in turn implies that the return on working capital expenditure is low. But what does a high or low working capital ratio imply from a financial standpoint?Ī high turnover ratio implies that a company is being extremely efficient in using its working capital (short-term assets and liabilities) to support its efforts to generate more sales. Implications of Working Capital Turnover RatioĪ company’s Working Capital Turnover Ratio tells a lot about the company’s ability to generate results for the value spent.
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