Teuku Chris Adhiatma, 2015: The Influence ofworking capital on return on
invested capital of listed textile and garment companies in Indonesia Stock
Exchange.
Thesis. Department of Accounting Faculty of Economic, State University of
Jakarta.
This study aimed to determine the influence of working capital on return on
invested capital of listed textile and garment companies in Indonesia Stock
Exchange. The dependent variable in this study is return on invested capitaland
the independent variables in this researcharecash ratio, receivable turnover,
inventory turnover, and debt to total assets ratio. returnon invested capitalis
measured bydivision thenet operating profit after taxwithinvested capital, cash
ratiois measuredby division ofcash and cash equivalent with current liabilities,
receivable turnoveris measuredby divisioncredit sales with receivable, inventory
turnover measured by division of cost of goods sold with inventoryanddebt to
total assets ratiois mesuredwithdivision oftotal debt with total assets.This study
took a samplelisted textile and garment companiesin Indonesia StockExchange
during the years 2011-2013. The data obtained by purposive sampling techniques
and using multiple regression analysis.
Simultaneous hypothesis testing result show thatcash ratio, receivable turnover,
inventory turnover, and debt to total assets ratiosimultaneously affect thereturn
on invested capital. Thepartial hypothesis test result show that cash ratio and
receivable turnober have asignificantaffect theunderpricingwhile inventory
turnover and debt to total assets ratio doesn’t.
Keywords:working capital, cash ratio, receivable turnover, inventory turnover,
debt to total asset ratio, return on invested capita
