THE INFLUENCE OF WORKING CAPITAL MANAGEMENT TOWARD PROFITABILITY (STUDY IN RETAIL COMPANIES LISTING IN INDONESIA, MALAYSIA, AND SINGAPORE EXCHANGE IN PERIOD 2014-2016)

Abstract

This research objective is to identify the influence of average age of inventory (AAI), average collection period (ACP), average payment period (APP), current ratio (CR) toward profitability proxied by ROA of retail companies in Indonesia, Malaysia, and Singapore. This study has applied purposive sampling method and panel data where the data was collected from the official websites of IDX, MSE, and SGX in three years. An empirical evidence of this research indicates that AAI and ACP has significantly influence toward ROA in all research areas. However, APP has a positive insignificant effect to ROA in Singapore, while in Indonesia and Malaysia has negative insignificant effect to ROA. CR has the negative insignificant impact to ROA in Singapore, but negative significant in Indonesia and Malaysia. It shows that the profitability greatly influenced by the average age of inventory and collection period in all research areas.