Abstract:
Working capital management is the management of the elements of current
assets and current liabilities elements. The purpose of working capital
management is to manage current assets and current liabilities in order to obtain
proper net working capital and guarantees the liquidity of the company. The
objective of this research is to investigate the influence of working capital
management which proxies by the current ratio, fixed asset turnover, cash
turnover, and the cash conversion cycle of the return on assets. The data used are
the secondary data from the financial statements of manufacturing companies in
Indonesia and Singapore. This research was conducted on 132 manufacturing
companies listed on the Indonesia Stock Exchange and 39 manufacturing
companies listed on the Singapore Stock Exchange. The sample collection
techniques used purposive sampling method. Data analysis used simple linear
regression and tested by t-test, and coefficient determination test with level of
significance 5%. The results of research in Indonesia are the current ratio and
fixed asset turnover still remains significant positive effects on profitability, and
significant negative effects on cash turnover, and cash conversion cycle had no
significant effects on profitability. In contrast to the results of research in
Singapore, that the current ratio and the cash turnover had no significant effect,
fixed asset turnover still has significant negative effects, and cash conversion
cycle had significant positive effects on profitability.
