ANALYSIS OF DEBT TO EQUITY RATIO, FIRM SIZE, INVENTORY TURNOVER, CASH TURNOVER, WORKING CAPITAL TURNOVER AND CURRENT RATIO TO PROFITABILITY COMPANY (STUDY ON MINING COMPANIES LISTED IN BEI PERIOD 2010-2013)

Abstract

The phenomenon is at issue in this study is considering the economic conditions are always changing, then the condition can be seen from the company's profits. Corporate profits should rise, just the opposite is often decreased it will interfere with the operational activities of the company.
The purpose of this study was to analyze the effect of the debt to equity ratio, firm size, inventory turnover, cash turnover, working capital turnover, and the current ratio on the profitability of mining companies listed on the Stock Exchange in 2010-2013.
This study uses debt to equity ratio, firm size, inventory turnover, cash turnover, working capital turnover, and the current ratio as the independent variable and profitability as the dependent variable. The sampling technique was by purposive sampling. The samples are 35 mining companies listed on the Stock Exchange in 2010-2013. The analysis method used is quantitative analysis, including analysis of descriptive statistics, regression test, and analysis models kindness.
Based on the results of testing the cash turnover positive effect on profitability, while debt to equity ratio and working capital turnover negative effect on profitability. Firm size, and current inventory turnover ratio does not affect the profitability. Based on the test results showed that showed that the regression model can be used to predict profitability. While the independent variables are able to explain the profitability of 20.1%.
Key words: debt to equity ratio, firm size, inventory turnover, cash turnover, working capital turnover, current ratio, profitability.