Abstract:
This research objective is to empirically prove the influence of financial performance and firm size towards profitability of food and beverages manufacturing industry during period 2012-2017. This research used quantitative research through purposive sampling and panel data which was obtained from official websites of each firm and Indonesia Stock Exchange, this research has 50 observations from five firms in six years semi-annually. An empirical evidence of this research indicates that current ratio, cash conversion cycle, working capital turnover ratio, and firm size has the partially significant negative influence to ROA, while asset turnover ratio has the insignificant positive influence to ROA. Simultaneously, all of the independent variables have the significant influence to the profitability, described by 82.96% and the rest of 17.04% is explained by another factor that excluded in this research. Moreover, working capital turnover ratio is chosen as the most significant factor which influences the profitability. Working capital turnover ratio is important since it illustrates the operation of a company which may influence the performance and sustainability of business.
