PENGARUH EFISIENSI MODAL KERJA DAN PERPUTARAN TOTAL ASET TERHADAP PROFITABILITAS PERUSAHAAN SUB SEKTOR MAKANAN DAN MINUMAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2019 - 2024Profitability,

Abstract

The food and beverage industry has continued to demonstrate relatively positive performance amid economic instability. However, this situation does not fully reflect the profitability levels of all companies in this sector. Profitability is the most critical aspect in assessing a company’s financial performance as it reflects the company’s ability to generate profits.This study aims to statistically test the influence of working capital efficiency and total asset turnover on the profitability of companies in the food and beverage sub-sector listed on the Indonesia Stock Exchange for the period 2019–2024. The research method used is a quantitative method with a descriptive approach. Purposive sampling was used in this study to determine the sample size, and data analysis was conducted using Eviews 13.The results of the partial tests indicate that working capital efficiency does not have a significant effect on profitability, as evidenced by a calculated t-value of –0.738968 and a probability value of 0.4615 > 0.05. Total asset turnover also does not have a significant effect on profitability, as indicated by a calculated t-value of 1.946131 and a probability value of 0.0541 > 0.05. However, the simultaneous analysis shows a calculated F-value of 13.32147, which is greater than the critical F-value of 3.06, and yields a probability value of 0.000000 < 0.05. Thus, it can be concluded that working capital efficiency and total asset turnover, taken together, have a significant effect on the company’s profitability. The results of the simultaneous test in this study support the agency theory perspective, which states that optimal management of working capital and assets by management can provide economic benefits to the company in terms of increased profitability.