The Effect of Working Capital on Profitability in Dinar Indonesia Bank

Abstract

in this study, there are two variables, namely variable x (working capital) and variable y (profitability). this research was conducted to determine the effect of working capital on profitability at Bank Dinar Indonesia Tbk. the method used in this research is descriptive analysis method to identify how the effect of working capital and how much profitability at Bank Dinar Indonesia Tbk. meanwhile, the verification analysis for problem identification is how much influence working capital has on profitability at Bank Dinar Indonesia Tbk. this research was conducted at the office of Bank Dinar Indonesia Tbk. this research was conducted using a sample based on purpose sampling. the hypothesis of this study is working capital has a n effect on profitability at Bank Dinar Indonesia Tbk. to measure the magnitude of the influence of these variables using simple linear regression with the help of the application system software spss 21.0. based on the results of data analysis using statistical methods, it is concluded that there is a significant influence between working capital on bank profitability, this is based on regression analysis with the equation y = 1.439 + 42.720x. in correla tion there is a very strong relationship between n tax property credit to bank liquidity with a value of 0.554. furthermore, the coefficient of determination (kd) is obtained that working capital affects profitability with a value of 30.70%. hypothesis t esting of this research where the value of tcount of 5.20 is greater than the value of ttable in 2012, then h1 is accepted and h0 is rejected, which means that working capital has a strong effect on bank profitability.