The Effect of Liquidity, Leverage and Working Capital Turnover on Profitability in Banking Subsector Financial Companies on The Indonesia Stock Exchange (IDX) 2017 – 2021: Pengaruh Likuiditas, Leverage dan Working Capital Turnover Terhadap Profitabilitas pada Perusahaan Keuangan Subsektor Perbankan di Bursa Efek Indonesia (BEI) Tahun 2017 – 2021
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This study aims to examine the effect of liquidity, leverage and working capital turnover on profitability in banking sub-sector financial companies on the Indonesia Stock Exchange (IDX) in 2017 – 2021. The way to determine the sample in this study is to use the Simple Random Sampling method so that the number of samples obtained is 15 companies. The results of this study indicate that the variable liquidity and WCT have a significant influence on profitability either partially or simultaneously. Based on the results of the Coefficient of Determination Test (Adjusted R Square), an R2 value of 0.148 or 14.8% is obtained. So it can be explained that in this study the variable Profitability (Y) is influenced by the variables Liquidity (X1), Leverage (X2), and WCT (X3) of 14.8%, while the remaining 85.2% is influenced by other variables not examined in this research.
Keywords
Profitability, Liquidity, Leverage, Working Capital Turnover