Examining the Effect of Cash Conversion Cycle on Profitability in PERTAMINA Balikpapan Hospital: Moderating Role of Total Assets

Agung Kusuma Adi Chandra; Ardi Paminto; Wirasmi Wardhani; Tetra Hidayati

doi:10.56225/ijassh.v3i1.304

Authors

Agung Kusuma Adi Chandra Faculty of Economics and Business, Universitas Mulawarman, Samarinda Ulu, Kota Samarinda, Kalimantan Timur, Indonesia
Ardi Paminto Faculty of Economics and Business, Universitas Mulawarman, Samarinda Ulu, Kota Samarinda, Kalimantan Timur, Indonesia
Wirasmi Wardhani Faculty of Economics and Business, Universitas Mulawarman, Samarinda Ulu, Kota Samarinda, Kalimantan Timur, Indonesia
Tetra Hidayati Faculty of Economics and Business, Universitas Mulawarman, Samarinda Ulu, Kota Samarinda, Kalimantan Timur, Indonesia

DOI:

https://doi.org/10.56225/ijassh.v3i1.304

Keywords:

Cash Conversion Cycle, Profitability, Company Size

Abstract

This study analyzes the effect of company size and cash conversion cycle on profitability with firm size as a moderating variable. The cash conversion cycle is the independent variable with company size using total assets as a moderating variable, while the dependent variable is profitability using the net profit margin ratio. The data were obtained from company financial reports taken from interim reports for 2013 - 2022. The sample was determined using purposive sampling, and a sample of 120 was obtained. The analytical method used in this research was panel data regression with the previous moderate regression analysis. Has passed the classical assumption test the hypothesis proposed in this research is that the cash conversion cycle influences profitability by using firm size as a moderating variable. The research results show that net profit margin with company size as a moderating variable has a significant effect. In addition, it was found that ln total assets moderated this relationship. Companies with a larger total asset size show that cash relationship conversion cycles are more significant to profitability than companies with smaller total assets.

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