Effect of Cash, Receivables, and Inventory Turnover on Net Profit Margin (NPM) in Food & Beverage Subsector Manufacturing Companies

Abstract

This study focused on the influence of cash turnover, receivables turnover, and inventory turnover against the Net Profit Margin (NPM), showing the inequality of the results of previous studies. Therefore, this research investigates whether that inequality is associated with cash turnover, receivables turnover, and supply turnover against NPM, which becomes the focus of this study. The research used the data obtained from food and beverage manufacturing subsectors in the Southeast Asian Stock Exchange between 2012 and 2018. This study applied purposive sampling of 11 companies that provided a complete financial report, acquiring 77 samples. The statistical analyses used were multiple linear regression, partial testing, and simultaneous testing. The results of this study indicated that cash turnover and receivables turnover had no significant influence on the NPM, while the supply turnover had a significant influence on NPM. The results of the simulta-neous study of cash turnover, the turnover of receivables, and inventory turnover have a signif-icant rate of 0.010 < 0.05. It can be concluded that cash turnover, turnover receivables, and inventory rotation significantly influence the NPM.

Keywords

• cash turnover
• inventory turnover
• net profit margin
• receivable turnover