THE EFFECT OF RECEIVABLES TURNOVER AND CASH TURNOVER ON RETURN ON ASSETS (ROA) AT THE COMPANY PT. SKF INDUSTRIAL INDONESIA

Abstract

The problem identified in this study is that accounts receivable turnover and cash turnover have an impact on Return on Assets (ROA). This study was conducted to determine and examine the effect of accounts receivable turnover and cash turnover on Return on Assets (ROA) at PT SKF Industrial Indonesia. This study is motivated by an increase in accounts receivable turnover and cash turnover but not followed by an increase in Return on Assets (ROA).  The data collection method used in this research is unstructured observation by obtaining secondary data in the form of financial reports from the company's finance team. This data analysis was carried out by Descriptive Statistical Analysis, Classical Assumption Test, Multiple Linear Regression Analysis, Hypothesis Test, and Determination Coefficient Test. Based on the results of hypothesis testing, it is found that the variables of accounts receivable turnover and cash turnover partially and simultaneously have no effect on return on assets. While the coefficient of determination test shows that the independent variables affect the dependent variable and are influenced by other variables. Therefore, the increase in accounts receivable turnover and cash turnover has no significant effect on return on assets.