Exploration of the relationship between operating cash flow with net profit margin and retun on equity: Analysis with a simple linear regression approach – one predictor
Keywords:
operating cash flow, net profit margin, return on equityAbstract
The purpose of this study is to explore the relationship between operating cash flow (OCF) with net profit margin (NPM) and return on equity (ROE), each effect is partially tested with one predictor. Case study at PT. Nippon Indosari Corporindo Tbk which is listed on the Indonesia Stock Exchange (IDX). The research design uses a quantitative approach, explored with descriptive statistics and correlations. The unit of analysis is financial statements, the purposive sampling approach was chosen in the sample withdrawal for 32 quarters, namely during eight periods of financial statement data from 2015-2022. Data analysis methods with correlation tests, calculation and analysis of determination coefficient models, and simple linear regression model tests, as well as all hypothesis tests by applying t-tests, calculations and statistical analysis using the EViews v.12 program. The results showed that there was a linear relationship between OCF and NPM, OCF and ROE, and NPM and ROE. OCF has a low ability to explain NPM variance, but OCF has a moderate prediction ability against ROE variance, while NPM has a strong prediction ability against ROE variance. The results of the significance test concluded that OCF had a positive and significant effect on NPM. OCF has a positive and significant effect on ROE. NPM also has a positive and significant effect on ROE. The results of the exploration of the relationship between the three have implications that OCF is an important variable to measure management performance in terms of NPM and ROE, and the level of NPM and ROE has a strong correlation as a measure of company profitability and management success in an effort to improve the welfare of company owners and other stakeholders.
References
Alhusaeni, H. (2024). The effect of production costs and marketing costs on net profit: Case study in PT. Gudang Garam Tbk, in the Indonesia Stock Exchange 2018-2023. Jurnal Ekonomi, Manajemen Dan Akuntansi, 2(03), 441–454. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/140
Anggraini, S. A., Listyani, I., & Murdiyanto, E. (2023). Pengaruh Perputaran Kas Dan Perputaran Piutang Terhadap Return On Equity Pada PT. BFI Finance Indonesia, Tbk. Mufakat: Jurnal Ekonomi, Manajemen Dan Akuntansi, 2(5), 489–492. https://doi.org/10.572349/mufakat.v2i5.1167
Badollahi, Y. A. I. (2024). Pengaruh kinerja keuangan terhadap nilai perusahaan pada industri infrastruktur telekomunikasi: Ekonomi, Keuangan dan Bisnis. Jurnal Ekonomi, Manajemen Dan Akuntansi, 2(2), 249–262. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/82
Bungadira, W., Malahayati, R., & Nathanael, Y. A. (2024). Pengaruh Arus Kas Operasi, Arus Kas Pendanaan, Arus Kas Investasi, Profitabilitas, Ukuran Perusahaan dan Return On Asset Terhadap Return Saham Pada Perusahaan Makanan dan Minuman yang Terdaftar di Bursa Efek Indonesia Pada Tahun 2018-2022. Postgraduate Management Journal, 4(1), 164–181. https://doi.org/10.36352/pmj.v4i1.821
Derestiyani, A., & Susetyo, D. P. (2023). The Effect of Quick Ratio and Return on Equity on Tobin’s Q. JURNAL EMA, 1(2), 99–110. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/69
Fahmi, I. (2020). Analisis Kinerja Keuangan. Bandung. Bandung: CV. Alfabeta.
Firmansyah, D., Susetyo, D. P., & Sumira, M. (2020). Dampak Dana Desa Terhadap Pembangunan Desa Dan Pemberdayaan Masyarakat Desa Pada Desa Cibitung Kecamatan Sagaranten Kabupaten Sukabumi. Jurnal Akuntansi Berkelanjutan Indonesia, 3(2), 168–181. https://doi.org/10.32493/JABI.v3i2.y2020.p168-181
Ghozali, I. (2018). Analisis Multivariat dan Ekonometrika, Teori Konsep dan Aplikasi dengan EViews 10. Semarang: UNDIP.
Hanipah, S. S., & Firmansyah, D. (2024). Determinants of return on equity: Predictors of total asset turnover and debt to equity ratio–Panel data regression statistics. Jurnal Ekonomi, Manajemen Dan Akuntansi, 2(04), 593–608. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/133
Hermayati, Y., & Suwarna, A. I. (2023). The Effect of Sales Growth and Profitability on Capital Structure: Empirical Study of Companies Operating in the Soft Drinks Sector. Jurnal Ekonomi, Manajemen Dan Akuntansi, 1(2), 125–138. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/67
Hery, S. M. (2020). Analisis Laporan Keungan, Integrated and Comprehensive Edition. Jakarta: PT Grasindo.
Indonesia Stock Exchange (IDX). (2024). Pencarian untuk PT. Nippon Indosari Corporindo Tbk. Pencarian pada website resmi. Accessed January 31, 2024. https://www.idx.co.id/
Kasmir. (2021a). Analisis laporan keuangan (13th ed.). Depok : Rajawali Pers.
Marsya, R., & Rijanto, R. (2023). The Effect of Operating Costs and Operating Income on ROA: Study on Transportation Subsector Service Companies. Jurnal Ekonomi, Manajemen Dan Akuntansi, 1(2), 111–124. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/66
Napitupulu, F. (2020). Pengaruh Arus Kas Operasi, Penjualan dan Likuiditas Terhadap Profitabilitas Pada PT Kencana Permata Nusantara Periode 2014-2018. Journal of Business and Economics Research (JBE), 1(2), 70–79. https://doi.org/10.47065/jbe.v1i2.184
Nenobais, A. H., Niha, S. S., & Manafe, H. A. (2022). Pengaruh Return on Asset (ROA), Return on Equity (ROE), Net Profit Margin (NPM) dan Earning Per Share (EPS) terhadap Harga Saham (Suatu Kajian Studi Literatur Manajemen Keuangan Perusahan). Jurnal Ekonomi Manajemen Sistem Informasi, 4(1), 10–22. https://doi.org/10.31933/jemsi.v4i1.1146
Nurhasanah, A. N., & Sopian, Y. (2024). Pengaruh perputaran modal kerja dan biaya produksi terhadap profitabilitas pada PT. Unilever Indonesia Tbk: Studi kasus yang terdaftar di Bursa Efek Indonesia 2014-2022. Jurnal Ekonomi, Manajemen Dan Akuntansi, 2(03), 489–498. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/148
Nurjehan, S., Jhoansyah, D., & Komariah, K. (2022). Pengaruh Return On Equity, Net Profit Margin, Total Asset Trun Over Dan Dividen Per Share Terhadap Harga Saham Pada Perusahaan Sektor Industri Dasar Dan Kimia Pada Tahun 2018-2020. Management Studies and Entrepreneurship Journal (MSEJ), 3(4), 2133–2141. https://doi.org/10.37385/msej.v3i4.945
Sa’diah, S., & Suparman, D. (2024). Net profit: correlation between sales with production costs and the impact of both. Jurnal Ekonomi, Manajemen Dan Akuntansi, 2(04), 557–568. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/153
Sugiyono. (2022). Metode Penelitian Kuantitatif, Kualitatif dan R & D. Bandung: CV. Alfabeta.
Supriatna, A. (2024). The effect of working capital turnover and sales on net profit in companies in the property and real estate sub-sector: Case study listed on the Indonesia Stock Exchange for the period 2018-2022. Jurnal Ekonomi, Manajemen Dan Akuntansi, 2(03), 427–440. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/134
Susetyo, D. P., & Abdurohman, M. R. (2024). Exploration of the relationship between operating costs and net profit: a significance test with two approaches–Revised edition. Jurnal Ekonomi, Manajemen Dan Akuntansi, 2(2), 303–310. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/106
Susetyo, D. P., & Suryana, A. (2023). Financial Distress: Effects of Profit Growth and Cash Flow. JURNAL EMA, 1(3), 201–212. Retrieved from https://ip2i.org/jip/index.php/ema/article/view/41
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Hanipah, Reka Ardian Purnama

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.