The Effect Of Cash Ratio And Receivable Turnover On Net Profit Margin Study on Industry of Consumer Goods Companies that’re listed on the ISX at the term of 2016-2018
Yogo Heru Prayitno, Mohd Haizam Mohd Saudi
This research aims to make sure the effect of cash ratio & receivable turnover on net profit margins. This research is motivated by an increase in the efficiency and effectiveness of the corporate in running the company. To measure the efficiency of corporate activities, one of them is the ability to obtain profits that are measured using profitability ratios. Net profit margin is used to calculate the capacity of a corporate with all reserves put money into in assets used for the corporate's operations to gain revenue. Cash ratio’s calculates a corporate's capacity to pay short-term debt. Receivable turnover provides an understanding of the company's quality and the company's success in collecting these receivables. The population of this research’re corporates in the sector of industry of consumer goods listed on the ISX for the period of 2016-2018, namely 52 companies. The sampling technique uses purposive sampling so that there are 35 companies that meet the criteria. The outcomes of the research stated about partially the cash ratio affected the net profit margin, receivable turnover affected the net profit margin, and simultaneously the cash ratio and receivable turnover affected the net profit margin.
Volume: Volume 24
Issues: Issue 2
Keywords: cash ratio, receivable turnover, net profit margin.