The Effect of Inventory Turnover, Cash Turnover, and Receivable Turnover on Profitability at Telecommunication Companies during the Covid-19 Pandemic
1Lely Indriaty,2Gen Norman Thomas
1Department of Accounting, Faculty of Economics and Business, Universitas Persada Indonesia YAI, Jakarta, Indonesia 11320
2Department of Accounting, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia, 11480
https://doi.org/10.47191/jefms/v5-i1-12ABSTRACT:
This study aimed at analyzing three different turnovers of current asset elements: the inventory turnover, the cash turnover, and the receivable turnover on profitability. Data is taken in the form of financial statements from the public companies of the telecommunication sector during four quarters of 2020. The panel data is processed from 9 companies or 36 observations using the Eview9 application and produced the fixed effect model as the best regression. The results indicate that the cash turnover has a significantly positive effect on profitability, whereas the inventory turnover and the receivable turnover have not significantly any effect on profitability. Therefore, the study concluded that the cash turnover was the one of current assets turnover that effected on the profitability of the public company telecommunication sector in Indonesia. It implied to the public companies of telecommunication sectors to choose the appropriate turnover model to achieve the maximum profitability during the Covid-19 pandemic.
KEYWORDS:
Inventory Turnover, Cash Turnover, Receivable Turnover, Return on Assets, Telecommunication
REFERENCES:
1) Almadany, K & Ningsih, Y,R, 2020, Analysis of Receivable Turnover Against Liquidity and Profitability at the Medan LP3I
2) Polytechnic , The Journal of Accounting and Finance, Vol.1 No.1,
https://ejurnal.plm.ac.id/index.php/JAFIN/article/view/462
3) Farooq, Umar, 2019. "Impact of Inventory Turnover on the Profitability of Non-Financial Sector Firms in Pakistan," Journal of Finance and Accounting Research, University of Management and Technology, Lahore, vol. 1(1), pages 34-51, February, https://ideas.repec.org/a/ris/jfiacr/0003.html
4) Government Regulation No. 21 of 2020 on Large-Scale Social Restrictions (Pembatasan Sosial Berskala Besar), March 31, 2020, https://www.kemenkopmk.go.id/pembatasan-sosial-berskala-besar
5) Hakim, H.M.Z., Manda. G,S & Rakhman, A, 2020, Effect of Cash Turnover and Account Receivable Turnover on Profitability,
6) Business Innovation and Entrepreneurship Journal, Vol.2 No.1, pp.61-67,
http://ejournals.fkwu.uniga.ac.id/index.php/BIEJ/article/view/42
7) Julianti, D,K., Sumendra, I Wayan & Telagawati, N,L,W, S., 2017, Pengaruh Current Ratio dan Debt to Equity Ratio Serta Inventory Turnover Terhadap Return on Asset Pada Perusahaan Otomotif yang terdaftar di Bursa Efek Indonesia,
8) Jurnal Manajemen Indonesia, Vol.5 NO.1, https://ejournal.undiksha.ac.id/index.php/JMI/article/view/9362
9) Kurniawan, H., Khosasih, R,W.,Simatupang, J.P & Januardin, 2020, Effect of Solvency, Current Ratio and Account Receivable Turnover on Profitability in Basic Industrial Companies and Chemical listed on the Indonesia Stock Exchange 20152019, International Journal of Research and Review, Vol7 issue12, December 2020, pp.518-525, https://www.ijrrjournal.com/IJRR_Vol.7_Issue.12_Dec2020/IJRR0076.pdf
10) Manullang, A.A., Togatorop, D., Purba,P,R,D., Manik., A,Y., Simorangkir., E.N, Lase, R,K, 2020, The Significance of Account Receivable Turnover, Debt to Equity Ratio, Current Ratio to The Probability of Manufacturing Companies, International
11) Journal of Social Science and Business, Vol.4 No.3, 2020 pp 464-471,
https://ejournal.undiksha.ac.id/index.php/IJSSB/article/viewFile/27874/16136
12) Melvina., Handoko & Yaasin, F.N, 2020, Effect of Current Ratio, Debt to Total Assets Ratio, Cash Turnover, and Total Assets Turnover on Return on Assets in Food and Beverage Sector Companies on the IDX 2015-2018 Periode, Jurnal Mantik, Vol4 No.3, https://iocscience.org/ejournal/index.php/mantik/article/view/1120
13) Migang, S & Irawan A, 2019, Pengaruh Cash Turnover, Working Capital Turnover, Receivable Turnover dan Inventory Turnover Terhadap Return on Assets Pada Perusahaan Keramik yang Terdaftar di Bursa Efek Indonesia, Jurnal Geoekonomi, Vol.10 No.2, September, https://jurnal.fem.uniba-bpn.ac.id/index.php/geoekonomi/article/view/60
14) Minister of Home Affairs Instruction No.15 of 2021 on Enforcement of Restriction on Community Activities (Pemberlakuan Pembatasan Kegiatan Masyarakat untuk Jawa-Bali), July 3, 2021, https://news.detik.com/berita/d-5628512/ini-dasarhukum-ppkm-darurat-yuk-disimak
15) Nelly & Toni, N, 2020, The Effect of Treasury Turnover, Receivable Turnover, Working Capital Turnover and Current Ratio against Profitability Registered Food and Beverage Companies in Indonesia Stock Exchange for the period 2013-2018, Budapest International Research and Critics Institute (BIRCI-Journal) : Humanities, Vol.3 No.3,
http://www.bircujournal.com/index.php/birci/article/view/1117
16) Nuraini, A.I., 2021, The Effect of Cash Turnover and Inventory Turnover of Return on Assets (ROA), Almana : Jurnal Manajemen dan Bisnis, volume 5, No.2/August 2021, p.259-270, DOI: 10.36555/almana.v5i2.1659,
http://journalfeb.unla.ac.id/index.php/almana/article/view/1659/1002
17) President Decision No.11 of 2020 on Public Health Emergency (Kedaruratan Kesehatan Masyarakat Covid-19), March 31, 2020, https://www.kemenkopmk.go.id/pembatasan-sosial-berskala-besar
18) Rakhman, A, Zakaria, H.K & Manda G,S, 2019, Factors Affecting Return on Assets, The International Journal of Business Review ( The Jobs Review), Fakultas Pendidikan Ekonomi dan Bisnis Universitas Pendidikan Indonesia, Vol.2 No.1, https://ejournal.upi.edu/index.php/thejobsreview/article/view/17772
19) Riyanto, Bambang, 2016., Dasar-Dasar Pembelanjaan Perusahaan, BPFE, Yogyakarta.
20) Rumbyarso, Y,P,A., Suharto & Sodikin, A, 2021, Effect of Receivable Turnover, Inventory Turnover on Company Profitability with Return on Assets as Moderation Variables, Journal of Research in Business and Management, Vol.9 Issue1 (2021) pp.81-86, http://questjournals.org/jrbm/papers/vol9-issue1/2/J0901028186.pdf
21) Solihin, D & Verahastuti , C. 2020. Profitabilitas Sektor Telekomunikasi di Tengah Pandemi Covid-19, AKTUAL Jurnal of Accounting and Finance, STIE AUB Muluk Kondang Kusumaning Bawono, Volume 5, No.2, December, https://ejournal.stie-aub.ac.id/index.php/aktual/article/view/775/644
22) Suraya, A, 2018, The Influence of Account Receivable Turnover and Inventory Turnover on Profitability at PT Sumber Alfaria Trojaya Tbk, Pinisi Discretion Review, Vol.2 Issue 1, September 2018,
https://ojs.unm.ac.id/UDR/article/view/13246
23) Werdiningtyas, R & Sam’ani., 2018, Analisa Pengaruh Receivable Turnover (RTO), Inventory Turnover (ITO), Working Capital
24) Turnover (WCTO) dan Total Assets Turnover (TATO) Terhadap Probabilitas pada Perusahaan yang terdaftar di Jakarta Islamic Index (JII) periode 2011-2017, Jurnal Sains Ekonomi dan Perbankan Syariah, Vol.8 No.1, https://jurnal.polines.ac.id/index.php/jse/article/view/1666/106668
25) Widiyanti, M & Bakar, S,W, 2014, Pengaruh Working Capital Turnover, Cash Turnover, Inventory Turnover, dan Current Ratio, Terhadap Profitabilitas (ROA) Perusahaan Property dan Real Estate yang terdaftar di BEI, Jurnal Manajemen & Bisnis
26) Sriwijaya, Fakultas Ekonomi Universitas Sriwijaya, Vol.12 No.2,
https://ejournal.unsri.ac.id/index.php/jmbs/article/view/3212
