Abstract:
This research aims to find out relationship between working capital management toward profitability of 10 listed food manufacturers during period 2011-2015. Return on Equity is use as proxy for profitability, and account receivable period, account payable period, and current ratio uses as measure working capital management. This research is using secondary data from 10 listed food manufacturers. To get a result this research using classical assumption analysis and multiple regression analysis and has result, there are for account receivable period has insignificant and negative coefficient toward return on equity. Account payable period has significant and positive coefficient toward return on equity. Current ratio also has significant and positive coefficient toward return on equity. And all independent variables have positive simultaneous toward return on equity. It is further recommended that the manufacturers should speed up the collection, and little bit get more time to pay their payable to increase profitability, and keep the value of current ratio in order to increase their profitability.
