THE EFFECT OF ROUND RATIO OF ACTIVITY ON COMPANY PROFITABILITY WITH LIQUIDITY AS INTERVENING VARIABLES (Empirical Study of Basic and Chemical Industrial Manufacturing Companies Listed on the IDX for the 2013-2017 Period)

Abstract

This study aims to determine the effect of cash turnover, accounts receivable turnover, inventory turnover,
working capital turnover and liquidity to the company's profitability. As well as to determine the effect of cash
turnover, accounts receivable turnover, inventory turnover and working capital turnover on the company's
profitability with liquidity as an intervening variable. In this study using quantitative methods. Data analysis is an
activity after data from all respondents or other data sources are collected.
Data analysis techniques in quantitative research use statistics. There are two kinds of statistics used to
analyze data in research, namely descriptive statistics and inferential statistics. The results of this study indicate that
Working Capital Turnover, Cash Turnover and Liquidity have no significant effect. While Receivable Turnover and
Inventory Turnover have a significant effect on Profitability (ROA) in Manufacturing Companies. For the Effect of
Working Capital Turnover and Inventory Turnover through Liquidity (Current Ratio) shows indirectly through
Liquidity (Current Ratio) has a significant influence on Profitability (ROA) . Whereas for Cash Turnover and
Receivable Turnover through Liquidity (Current Ratio) shows directly Cash Turnover and Receivable Turnover
through Liquidity (Current Ratio) has a significant influence on Profitability (ROA) in Manufacturing Companies.
Keywords: Activity Ratio Turnover, Current Ratio and Profitability.