Relasi Antara Efisiensi Operasional Dan Profitabilitas

Authors

  • Sri Wahyuni Jamal Universitas Muhammadiyah Kalimantan Timur
  • Fenty Fauziah Universitas Muhammadiyah Kalimantan Timur
  • Azhar Latief Universitas Muhammadiyah Kalimantan Timur
  • Muh. Najeri Al Syahrin Universitas Lambung Mangkurat

DOI:

https://doi.org/10.30656/jak.v9i1.3651

Abstract

The relationship between operational efficiency and profitability cannot be ignored because increasing profitability is necessary for the long-term survival of any company. Efficiency can be measured through several financial ratios using working capital turnover and total asset turnover. Then for profitability using return on assets. The sample of companies used is the coal mining sector as many as 10 companies for 3 years from 2017-2019. Multiple linear regression is used to describe the dynamics of changes in return on assets. Based on the results of the analysis, we found that either partially or simultaneously working capital turnover and total asset turnover have a significant effect on return on assets.

References

Afza, T., & Nasir, M. S. (2007). Working Capital Management Practices of Firms: Empirical Evidence from Pakistan. 9th South Asian Management Forum (SAMF), 334–343.

Arshad, Z., & Gondal, M. Y. (2013). Impact of Working Capital Management on Profitability a Case of the Pakistan Cement Industry. Interdisciplinary Journal of Contemporary Research in Business, 5(2), 384–390.

Azad, A. M. S., Raza, A., & Zaidi, S. S. Z. (2018). Empirical Relationship between Operational Efficiency and Profitability (Evidence from Pakistan Exploration Sector). Journal of Accounting, Business and Finance Research, 2(1), 7–11. https://doi.org/10.20448/2002.21.7.11

Bijańska, J., & Wodarski, K. (2014). Risk Management in the Planning of Development Projects in the Industrial Enterprises. Metalurgija, 53(2), 276–278.

Burja, C. (2011). Factors Influencing the Companies‘ Profitability. Annales Universitatis Apulensis Series Oeconomica, 13(2), 215–224. https://doi.org/10.29302/oeconomica.2011.13.2.3

Çelik, R., Bilen, B., & Bilen, Ö. (2016). The Impacts of Changes in Macro-Economic Data on Net Working Capital: The Case of Turkey’s Industrial Sector. Procedia Economics and Finance, 38, 122–134. https://doi.org/10.1016/s2212-5671(16)30184-8

Daryanto, W. M., & Rachmanto, F. (2017). The Effect of Working Capital Turnover and Receivable Turnover on Profitability: Case Study on PT. Merck Tbk. International Journal of Business Studies, 1(2), 60–65. https://doi.org/10.32924/ijbs.v1i2.20

Enqvist, J., Graham, M., & Nikkinen, J. (2014). The Impact of Working Capital Management on Firm Profitability in Different Business Cycles: Evidence from Finland. Research in International Business and Finance, 32, 36–49. https://doi.org/10.2139/ssrn.1794802

Gedajlovic, E., & Shapiro, D. M. (2002). Ownership Structure and Firm Profitability in Japan. Academy of Management Journal, 45(2), 565–575.

Gill, A., Biger, N., & Mathur, N. (2011). The Effect of Capital Structure on Profitability: Evidence from the United States. International Journal of Management, 28(4), 3–15.

Gill, A., & Shah, C. (2012). Determinants of Corporate Cash Holdings: Evidence from Canada. International Journal of Economics and Finance, 4(1), 70–79. https://doi.org/10.5539/ijef.v4n1p70

Hofman, M., Spalek, S., & Grela, G. (2017). Shedding New Light on Project Portfolio Risk Management. Sustainability, 9, 1–18. https://doi.org/10.3390/su9101798

Irman, M., Purwati, A. A., & Juliyanti. (2020). Analysis On The Influence Of Current Ratio, Debt to Equity Ratio and Total Asset Turnover Toward Return On Assets On The Otomotive and Component Company That Has Been Registered In Indonesia Stock Exchange Within 2011-2017. International Journal of Economics Development Research (IJEDR), 1(1), 36–44. https://doi.org/10.37385/ijedr.v1i1.26

Işık, Ö. (2017). Determinants of Profitability: Evidence from Real Sector Firms Listed in Borsa Istanbul. Business and Economics Research Journal, 4(8), 689–698. https://doi.org/10.20409/berj.2017.76

Jamalinesari, S., & Soheili, H. (2015). The Relationship between the Efficiency of Working Capital Management Companies and Corporate Rule in Tehran Stock Exchange. Procedia - Social and Behavioral Sciences, 205, 499–504. https://doi.org/10.1016/j.sbspro.2015.09.052

Jasmani. (2019). The Effect of Liquidity and Working Capital Turnover on Profitability at PT. Sumber Cipta Multiniaga, South Jakarta. Pinisi Discretion Review, 3(1), 29–38.

Joh, S. W. (2003). Corporate Governance and Firm Profitability: Evidence from Korea before the Economic Crisis. Journal of Financial Economics, 68(2), 287–322.

Jonek-Kowalska, I. (2019). Consolidation as a Risk Management Method in the Lifecycle of a Mining Company: A Novel Methodological Approach and Evidence from the Coal Industry in Poland. Resources Policy, 60, 169–177. https://doi.org/10.1016/j.resourpol.2018.12.014

Kantudu, A. S. (2008). Effect of Profitability and Total Assets on the Funded Status of Pension Assets of Quoted Firms in Nigeria. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1104845

Keown, A. J., Martin, J. D., Petty, J. W., & Scott, D. F. (2013). Financial Management: Principles and Applications, 10 th Edition. England: Pearson Education Limited.

Korski, J., Tobor-Osadnik, K., & Wyganowska, M. (2016). Reasons of Problems of the Polish Hard Coal Mining in Connection with Restructuring Changes in the Period 1988-2014. Resources Policy, 48, 25–31. https://doi.org/10.1016/j.resourpol.2016.02.005

Matyjaszek, M., Wodarski, K., Krzemien, A., Garcia-Miranda, C. E., & Sanchez, A. S. (2018). Coking Coal Mining Investment: Boosting European Union’s Raw Materials Initiative. Resources Policy, 57, 88–97. https://doi.org/10.1016/j.resourpol.2018.01.012

Mihaela, H., & Claudia, O. (2017). Does Capital Structure Influence Company Profitability? Studies in Business and Economics, 12(3), 50–62. https://doi.org/10.1515/sbe-2017-0036

Mithas, S., Tafti, A., Bardhan, I., & Goh, J. M. (2012). Information Technology and Firm Profitability: Mechanisms and Empircal Evidence. MIS Quarterly, 36(1), 205–224. https://misq.org/information-technology-and-firm-profitability-mechanisms-and-empirical-evidence.html

Nurlaela, S., Mursito, B., Kustiyah, E., Istiqomah, I., & Hartono, S. (2019). Asset Turnover, Capital Structure and Financial Performance Consumption Industry Company in Indonesia Stock Exchange. International Journal of Economics and Financial Issues, 9(3), 297–301. https://doi.org/10.32479/ijefi.8185

Patin, J.-C., Rahman, M., & Mustafa, M. (2020). Impact of Total Asset Turnover Ratios on Equity Returns: Dynamic Panel Data Analyses. Journal of Accounting, Business and Management (JABM), 27(1), 19–29. https://doi.org/10.31966/jabminternational.v27i2.689

Petchsakulwong, P., & Jansakul, N. (2018). Board of Directors and Profitability Ratio of Thai non-life Insurers. Kasetsart Journal of Social Sciences, 39(1), 122–128. https://doi.org/10.1016/j.kjss.2017.11.005

Qamara, T., Wulandari, A., Sukoco, A., & Suyono, J. (2020). The Influence of Current Ratio, Debt to Equity Ratio, And Total Asset Turnover Ratio on Profitability of Transportation Companies Listed On the Indonesia Stock Exchange 2014-2018. IJIEEB(International Journal of Integrated Education, Engineering and Business), 3(2), 81–93. https://doi.org/10.29138/ijieeb.v3i2.1169

Rey-Ares, L., Fernández-López, S., & Rodeiro-Pazos, D. (2021). Impact of Working Capital Management on Profitability for Spanish Fish Canning Companies. Marine Policy, 130, 104583. https://doi.org/10.1016/j.marpol.2021.104583

Rose, C. (2016). Firm Performance and Comply or Explain Disclosure in Corporate Governance. European Management Journal, 34(3), 202–222. https://doi.org/10.1016/j.emj.2016.03.003

Satriya, I. M. D., & Lestari, P. V. (2014). Pengaruh Perputaran Modal Kerja Terhadap Profitabilitas Perusahaan. E-Jurnal Manajemen, 3(7), 1927–1942.

Seissian, L. A., Gharios, R. T., & Awad, A. B. (2018). Structural and Market-Related Factors Impacting Profitability: A Cross Sectional Study of Listed Companies. Arab Economic and Business Journal, 13(2), 125–133. https://doi.org/10.1016/j.aebj.2018.09.001

Sharma, A. K., & Kumar, S. (2011). Effect of Working Capital Management on Firm Profitability Empirical Evidence from India. Global Business Review, 12(1), 159–173. https://doi.org/10.1177/097215091001200110

Sivathaasan, N., Tharanika, R., Sinthuja, M., & Hanitha, V. (2013). Factors Determining Profitability : A Study of Selected Manufacturing Companies Listed on Colombo Stock Exchange in Sri Lanka. European Journal of Business and Management, 5(27), 99–107.

Snigaroff, R., & Wroblewski, D. (2021). Earnings and l Liquidity Factors. The Quarterly Review of Economics and Finance, 80, 508–523. https://doi.org/10.1016/j.qref.2021.03.011

Stefan, I. O. B. (2015). Study on the Profitability of Romanian Companies Listed on Bucharest Stock Exchange. Procedia Economics and Finance, 30(15), 797–807. https://doi.org/10.1016/s2212-5671(15)01329-5

Stoneman, P., & Kwon, M. J. (19996). Technology Adoption and Firm Profitability. The Economic Journal, 106, 952–962.

Warrad, L. (2013). The Impact of Working Capital Turnover on Jordanian Chemical Industries’ Profitability. American Journal of Economics and Business Administration, 5(3), 116–119. https://doi.org/10.3844/ajebasp.2013.116.119

Downloads

Published

2022-01-13

Issue

Vol. 9 No. 1 (2022)

Section

Articles

License

Author(s) retain the copyright of articles published in this journal, with first publication rights granted to JAK (Jurnal Akuntansi) : Kajian Ilmiah Akuntansi This Work by JAK (Jurnal Akuntansi) : Kajian Ilmiah Akuntansi is licensed under a Creative Commons Attribution 4.0 International License.  This license permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited