Open AccessEffect of inventory turnover on the level of profitability
Author(s) -
Abdillah Arif Nasution
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/725/1/012137
Subject(s) - profitability index , return on assets , inventory turnover , stock exchange , variables , econometrics , business , nonprobability sampling , simple random sample , sample (material) , regression analysis , linear regression , statistics , economics , mathematics , finance , population , chemistry , demography , chromatography , sociology
This study aims to determine the effect of inventory turnover on profitability in automotive companies listed on Indonesia stock Exchange from 2015-2017. Profitability is measured by Return On Assets (ROA). The data used are the financial statements of each sample company, which are obtained through ICMD (Indonesia Capital Market Directory) The analytical method used in this study is a quantitative method, by testing classical assumptions, as well as statistical analysis, namely simple linear regression analysis. The sampling method used is purposive sampling. The variables of this study are inventory turnover as variable X, and Return On Assets as Y variables with a total sample per year of 18 companies. The results of this study are inventory turnover does not have a positive effect on Return On Assets.