Analysis Of The Effect Of Inventory Turnover (Ito), Working Capital Turnover (Wcto) And Total Asset Turnover On Profitability (Roa)
Keywords:
Inventory Turnover, Working Capital Turnover, Total Asset TURNOVER
Abstract
This study aims to examine the effect of Inventory Turnover (ITO), Working Capital Turnover and Total Asset Turnover on Profitability (ROA) at PT Indofood Sukses Makmur Tbk during the 2015-2024 period. This study is an associative study using secondary data in the form of the company's annual financial reports obtained from the company's website, with a sample size of 10 observations determined through purposive sampling. Data were analyzed using SPSS version 27 through descriptive statistical tests, classical assumption tests, autocorrelation tests, normality tests, heteroscedasticity tests, multicollinearity tests, multiple linear regression tests, t-tests, and f-tests. The results of the study indicate that, partially, the Inventory Turnover ratio does not have a significant effect on ROA, the Working Capital Turnover ratio does not have a significant effect on ROA, and the Total Asset Turnover ratio also does not have a significant effect on ROA, and simultaneously, the three variables also do not have a significant effect on ROA, so it can be concluded that ITO, WCTO, and TATO are not able to explain changes in ROA profitability.
References
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Sukaraja, NH (2018). Correlation of Parental Attention Level and Learning Independence with Student Learning Achievement . 10 (1), 17–23.
Werdiningtyas, R. (2018). Analysis of the Influence of Receivable Turnover (RTO), Inventory Turnover (ITO), Working Capital Turnover (WCTO), and Total Asset Turnover (TATO) on Profitability in Companies Listed on the Jakarta Islamic Index (JII) for the Period 2011-2017 . 8 (1), 19–29.
Yuli, F., & Sri, S. (2022). THE EFFECT OF WORKING CAPITAL TURNOVER (WCT) AND DEBT TO ASSETS RATIO (DAR) ON RETURN ON ASSETS (ROA) AT PT BUDI STARCH & SWEETENER TBK 2012 – 2021 PERIOD . 2 (4), 379–392.
Zuniarti, I., Widodo, DP, & Lestiningsih, AS (2017). Net Working Capital Turnover Ratio to Net Profit Margin Ratio . 123–132.
Al Muharram, Hilal Kholid. (2019). No Title .
Alfathan, AY, & Wiliyanti, R. (2025). The Effect of Cash Turnover, Inventory Turnover, Receivable Turnover, and Total Asset Turnover on Profitability in Retail Companies Listed on the Indonesia Stock Exchange for the Period 2021-2024 . 4 (3), 3265–3277.
Alifia, S., & Rismanty, VA (2025). THE EFFECT OF DEBT TO ASSET RATIO (DAR) AND WORKING CAPITAL TURNOVER (WCTO) ON RETURN ON EQUITY (ROE) AT PT INDOFOOD SUKSES MAKMUR TBK FOR THE 2014-2023 PERIOD . 10589–10602.
Baramuli, Dedy Nathanael. (2016). Dividend Payout Ratio at Top Banks in Indonesia. Scientific Periodical Journal of Efficiency , 16 (03), 356–366.
Baturaja, S., Period, T., Maulidia, W., & Priyanto, AA (2025). The Effect of Working Capital Turnover, Total Asset Turnover, Debt to Equity Ratio, and Current Ratio on Return on Assets at PT. 9 , 6012–6030.
Cahyani, BM, Ekonomi, F., & Karawang, US (2020). THE EFFECT OF INVENTORY TURNOVER AND CURRENT RATIO ON RETURN ON ASSETS IN SUB-SECTOR COMPANIES . 4 (2), 174–185.
Capital, W., Turnover, WC, Turnover, WC, Turnover, WC, Turnover, WC, & Turnover, WC (2022). THE EFFECT OF WORKING CAPITAL TURNOVER (WCT) AND DEBT TO ASSETS RATIO (DAR) ON RETURN ON ASSETS (ROA) AT PT BUDI STARCH & SWEETENER TBK 2012 – 2021 PERIOD . 2 (4), 379–392.
Daeli, A., Hutauruk, RA, Rifai, MB, & Silaen, K. (2024). Financial Statement Analysis as an Assessor of Management Performance . 3 .
Damayanti, NO (2020). Journal of Management Science and Research e-ISSN: 2461-0593 .
Desi, M., & Arisudhana, D. (2020). Journal of Accounting and Finance, Faculty of Economics and Business, Budi Luhur University . 9 (2), 153–166.
Fauzi, SE, & Prasetyo, H. (2024). THE EFFECT OF WORKING CAPITAL TURNOVER (WCTO) AND TOTAL ASSET TURNOVER (TATO) ON RETURN ON ASSET (ROA) AT PT MARTINA BERTO TBK 2014-2023 PERIOD . 2 (4), 892–901.
Fauzul, A., Hasibuan, H., Deli, NP, & Hudiya, Y. (2023). Ecobankers: Journal of Economy and Banking: Analysis of Sharia Financial Reports and Their Functions in Sharia Banking . 4 , 146–153.
Hardani. (2020). Qualitative & Quantitative Research Methods Book (March Issue).
Hastiwi, M., Novilasari, ED, Nugroho, NT, Duta, U., & Surakarta, B. (2022). The Importance of Financial Reports in Assessing Performance. National Seminar & Call For Paper Hubisintek , 16–24.
Iii, CHAPTER, & Research, O. (2025). Fani Putri Dantes, 2025 . 2023 , 31–41.
Janrosl, VSE (2019). THE EFFECT OF INVENTORY TURNOVER, TOTAL ASSET TURNOVER AND NET PROFIT MARGIN ON PROFIT CHANGES IN MANUFACTURING COMPANIES LISTED ON THE STOCK EXCHANGE . 1 (2), 225–230.
Kasmir. (2019). Financial Report Analysis - Rajawali Pers - Dr .
Kasmir. (2021). Analysis of the Jakarta Financial Report of PT RajaGrafindo Persada .
Maliny Putry Widowati. (2026). The Effect of Cash Ratio, Debt to Asset Ratio, Company Size, and Inventory Turnover on Return on Assets (Empirical Study on Pharmaceutical Subsectors Listed on the Indonesia Stock Exchange in 2026 ). 3 (2), 174–183.
Maulana, MS, Fidzaky, AF, & Kinanti, AF (2024). Development of the Manufacturing Industry Sector in the Face of Globalization . 2 (1).
Muharam, A., & Holid, H. (2019). THE EFFECT OF OPERATING EXPENSES TO OPERATING INCOME (BOPO) AND FINANCING TO DEPOSIT RATIO (FDR) ON RETURN ON ASSETS (ROA) OF ISLAMIC COMMERCIAL BANKS IN INDONESIA 2015-2018 PERIOD .
Putra, TW (2018). Jurnal Ulumul Syar'i, December 2018. 7 ( 2).
Putri, QA, & Agustin, S. (2017). ANALYSIS OF FACTORS AFFECTING PROFITABILITY . 6 , 1–16.
Sa, H. (2025). Basic Concepts of Hypothesis Formulation and Theoretical Review in Research . 2 (2), 64–73.
Sari, AM (2025). THE EFFECT OF INVENTORY TURNOVER AND DEBT TO EQUITY RATIO ON RETURN ON ASSETS IN TRANSPORTATION SECTOR COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE . 2 (5), 145–157.
Sugiyono. (2022). Quantitative Research Methods . 83–112.
Sugiyono. (2023). Chapter III Research Methods 3.1. 33–44.
Sujarweni, VW (2021). RESEARCH METHODS . 34–42.
Sukaraja, NH (2018). Correlation of Parental Attention Level and Learning Independence with Student Learning Achievement . 10 (1), 17–23.
Werdiningtyas, R. (2018). Analysis of the Influence of Receivable Turnover (RTO), Inventory Turnover (ITO), Working Capital Turnover (WCTO), and Total Asset Turnover (TATO) on Profitability in Companies Listed on the Jakarta Islamic Index (JII) for the Period 2011-2017 . 8 (1), 19–29.
Yuli, F., & Sri, S. (2022). THE EFFECT OF WORKING CAPITAL TURNOVER (WCT) AND DEBT TO ASSETS RATIO (DAR) ON RETURN ON ASSETS (ROA) AT PT BUDI STARCH & SWEETENER TBK 2012 – 2021 PERIOD . 2 (4), 379–392.
Zuniarti, I., Widodo, DP, & Lestiningsih, AS (2017). Net Working Capital Turnover Ratio to Net Profit Margin Ratio . 123–132.
Published
2026-07-09
How to Cite
Elsa Safitri, Puji Muniarty, & Irma Mardian. (2026). Analysis Of The Effect Of Inventory Turnover (Ito), Working Capital Turnover (Wcto) And Total Asset Turnover On Profitability (Roa). International Journal of Economics, Business and Innovation Research, 5(04), 3640-3656. Retrieved from https://e-journal.citakonsultindo.or.id/index.php/IJEBIR/article/view/3819
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