The Effect of Working Capital Turnover, Cash Turnover and Current Ratio, on Capital Structure, Through the Net Profit Margin of Basic and Chemical Industry Companies Listed on the Indonesia Stock Exchange in the 2017-2019 Period

Abstract

This study aims to examine and analyze the capital structure of the sub-sector of basic and chemical industrial companies listed on the Indonesia Stock Exchange. The variables tested include Working Capital Turnover, Cash Turnover, Current Ratio and Capital Structure with Net Profit Margin as the intervening variable. This study involved the sub-sector of basic and chemical industry companies listed on the Indonesia Stock Exchange during the period 2017 - 2019. The sample selection was carried out using the purposive sampling method. The data used is external data, which is obtained from the website www.idx.co.id. The data analysis process is carried out by calculating the PLS Algorithm using SmartPLS and then testing the hypothesis. The results showed that Working Capital Turnover and Current Ratio had an effect on the direction of a positive relationship to Capital Structure, Cash Turnover had no effect on Capital Structure, Net Profit Margin was able to mediate the effect of Working Capital Turnover and Current Ratio on Capital Structure. Net Profit Margin is not able to mediate the effect of Cash Turnover on Capital Structure.