How the Impact Cash Conversion Cycle and Liquidity on Profitability?

The purpose of the research aims to analyze the effect of Cash Conversion Cycle (CCC) and liquidity against company profitability. This research focus on consumer goods listed in Indonesia Stock Exchange for period 2014-2018. This study use an associative method, which aims to explain the causal relationship between one variable that affects other variables. Data were retrieved from consumer goods companies listed on the Indonesia Stock Exchange during the period 2014 – 2018 and used 35 consumer goods companies. The type of data use secondary data sourced from Indonesia Stock Exchange in financial statement data. The data analysis method uses multiple linear regression. The independent variable in this research are Cash Conversion Cycle (CCC) and Liquidity, the dependent variables are Net Profit Margin and Return on Equity. The results finds that CCC and liquidity had a significant effect on net margin profitability (NPM), but CCC and liquidity has no effect on return on equity (ROE).