The Influence of Net Working Capital and Sales Growth on Company Financial Performance (A Study of Banking Companies Listed on the Indonesia Stock Exchange 2018–2022)

A company's financial performance reflects the outcomes of various activities that contribute to its overall success. This study investigates the impact of net working capital and sales growth on financial performance, both jointly and individually. A quantitative approach is applied, utilizin...

Full description

Saved in:
Bibliographic Details
Main Authors: Lia Nurjanah, Intan Pramesti Dewi
Format: Article
Language:English
Published: Universitas KH Abdul Chalim, Prodi Ekonomi Syariah 2025-07-01
Series:Indonesian Interdisciplinary Journal of Sharia Economics
Subjects:
Online Access:https://www.e-journal.uac.ac.id/index.php/iijse/article/view/7487
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849470720940179456
author Lia Nurjanah
Intan Pramesti Dewi
author_facet Lia Nurjanah
Intan Pramesti Dewi
author_sort Lia Nurjanah
collection DOAJ
description A company's financial performance reflects the outcomes of various activities that contribute to its overall success. This study investigates the impact of net working capital and sales growth on financial performance, both jointly and individually. A quantitative approach is applied, utilizing secondary data and EViews version 12 to test the research hypotheses. The analysis includes multicollinearity testing, heteroscedasticity testing, Chow test, Hausman test, Lagrange multiplier test, and the common effect model. The results indicate that net working capital and sales growth, when considered together, have a significant and positive effect on financial performance.
format Article
id doaj-art-91df8e100dbd4010998b6afb4bead0ae
institution Kabale University
issn 2621-606X
language English
publishDate 2025-07-01
publisher Universitas KH Abdul Chalim, Prodi Ekonomi Syariah
record_format Article
series Indonesian Interdisciplinary Journal of Sharia Economics
spelling doaj-art-91df8e100dbd4010998b6afb4bead0ae2025-08-20T03:25:04ZengUniversitas KH Abdul Chalim, Prodi Ekonomi SyariahIndonesian Interdisciplinary Journal of Sharia Economics2621-606X2025-07-018310.31538/iijse.v8i3.7487The Influence of Net Working Capital and Sales Growth on Company Financial Performance (A Study of Banking Companies Listed on the Indonesia Stock Exchange 2018–2022)Lia Nurjanah0Intan Pramesti Dewi1Sekolah Tinggi Ilmu Ekonomi STAN IM, Bandung, IndonesiaSekolah Tinggi Ilmu Ekonomi STAN IM, Bandung, Indonesia A company's financial performance reflects the outcomes of various activities that contribute to its overall success. This study investigates the impact of net working capital and sales growth on financial performance, both jointly and individually. A quantitative approach is applied, utilizing secondary data and EViews version 12 to test the research hypotheses. The analysis includes multicollinearity testing, heteroscedasticity testing, Chow test, Hausman test, Lagrange multiplier test, and the common effect model. The results indicate that net working capital and sales growth, when considered together, have a significant and positive effect on financial performance. https://www.e-journal.uac.ac.id/index.php/iijse/article/view/7487Financial Performance, Net Working Capital, Sales Growth
spellingShingle Lia Nurjanah
Intan Pramesti Dewi
The Influence of Net Working Capital and Sales Growth on Company Financial Performance (A Study of Banking Companies Listed on the Indonesia Stock Exchange 2018–2022)
Indonesian Interdisciplinary Journal of Sharia Economics
Financial Performance, Net Working Capital, Sales Growth
title The Influence of Net Working Capital and Sales Growth on Company Financial Performance (A Study of Banking Companies Listed on the Indonesia Stock Exchange 2018–2022)
title_full The Influence of Net Working Capital and Sales Growth on Company Financial Performance (A Study of Banking Companies Listed on the Indonesia Stock Exchange 2018–2022)
title_fullStr The Influence of Net Working Capital and Sales Growth on Company Financial Performance (A Study of Banking Companies Listed on the Indonesia Stock Exchange 2018–2022)
title_full_unstemmed The Influence of Net Working Capital and Sales Growth on Company Financial Performance (A Study of Banking Companies Listed on the Indonesia Stock Exchange 2018–2022)
title_short The Influence of Net Working Capital and Sales Growth on Company Financial Performance (A Study of Banking Companies Listed on the Indonesia Stock Exchange 2018–2022)
title_sort influence of net working capital and sales growth on company financial performance a study of banking companies listed on the indonesia stock exchange 2018 2022
topic Financial Performance, Net Working Capital, Sales Growth
url https://www.e-journal.uac.ac.id/index.php/iijse/article/view/7487
work_keys_str_mv AT lianurjanah theinfluenceofnetworkingcapitalandsalesgrowthoncompanyfinancialperformanceastudyofbankingcompanieslistedontheindonesiastockexchange20182022
AT intanpramestidewi theinfluenceofnetworkingcapitalandsalesgrowthoncompanyfinancialperformanceastudyofbankingcompanieslistedontheindonesiastockexchange20182022
AT lianurjanah influenceofnetworkingcapitalandsalesgrowthoncompanyfinancialperformanceastudyofbankingcompanieslistedontheindonesiastockexchange20182022
AT intanpramestidewi influenceofnetworkingcapitalandsalesgrowthoncompanyfinancialperformanceastudyofbankingcompanieslistedontheindonesiastockexchange20182022