Analysis of Cash Round and Receivables Towards Liquidity of PT. Telecommunication Indonesia Tbk

DOI

10.2991/assehr.k.211102.131How to use a DOI?

Keywords

Cash Turnover; Accounts Receivable Turnover; Liquidity

Abstract

Accounts receivable turnover is high in a company is a condition of capital that will be higher and can be said to be liquid. High accounts receivable turnover will cause the company’s capital to increase so that the company can be said to be liquid and vice versa if the receivables turnover is low it will cause the company’s capital to decrease, so that the company is said to be illiquid. The cash flow statement is a tool to measure the level of liquidity of a company. Cash flow information is useful for assessing the ability of a company to generate cash flow. Cash flow forms the basis for company management to make decisions about whether to pay dividends to shareholders or to maintain funds and for future expansion and growth of the company. Liquidity is really needed by companies as a guarantee of fulfillment of short-term obligations. Management of current assets effectively and efficiently is very important for a company in order to maintain its liquidity, which plays a major role in determining how much change in working capital the company will use to achieve the profit the company expects.PT Telkom Indonesia (Persero) Tbk (Telkom) is a state-owned company (BUMN) engaged in information and communication technology (ICT) services and telecommunications networks in Indonesia. Telkom’s majority shareholder is the Government of the Republic of Indonesia at 52.09%, while the remaining 47.91% is controlled by the public. Telkom’s shares are traded on the Indonesia Stock Exchange (IDX) with the code “TLKM” and the New York Stock Exchange (NYSE) with the code “TLK”. PT Telkom’s cash and short-term investment in 2018 amounted to Rp. 18,743,000 ^* while in 2019 amounting to Rp. 15,709,000 ^* this indicates that there was a decrease of Rp. 3,034,000 ^* or about 20% for cash and short term investment of PT Telkom. Then in terms of PT Telkom’s Net Receivables in 2018 amounting to Rp. 12,737,000 ^* while in 2019 amounting to Rp. 15,837. 000 ^*. This shows that Net Receivables have increased by Rp. 3,100,000 ^*, - or about 21%. Therefore, it is necessary to research whether Cash Turnover and Accounts Receivable Turnover affect the Liquidity of PT. Telkom Indonesia Tbk. This research is a descriptive quantitative research. The data used in this study are secondary data taken from the Indonesia Stock Exchange which consists of the balance report and the profit and loss report of PT. Telkom Indonesia Tbk. Period 2014 to 2018. The data collection techniques used were literature study and documentation. The data analysis technique used is the classical assumption test consisting of: normality test, multicollinearity test, autocorrelation test and heteroscedasticity test, multiple linear regression analysis, correlation analysis, t test and F test. Based on the results of the research conducted, it can be found that the cash turnover variable has a positive and insignificant effect on the liquidity of the company PT Telekomunikasi Indonesia Tbk, while the account receivable turnover variable has no positive and significant effect on the liquidity of the company PT Telekomunikasi Indonesia Tbk. Cash turnover and accounts receivable turnover simultaneously have a positive and significant effect on the liquidity of the company PT Telekomunikasi Indonesia Tbk

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© 2021 The Authors. Published by Atlantis Press SARL.

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TY  - CONF
AU  - Asri Jaya
AU  - Nurlina
AU  - A. Tenri Syahriani
PY  - 2021
DA  - 2021/11/16
TI  - Analysis of Cash Round and Receivables Towards Liquidity of PT. Telecommunication Indonesia Tbk
BT  - Proceedings of the 1st International Conference on Research in Social Sciences and Humanities (ICoRSH 2020)
PB  - Atlantis Press
SP  - 974
EP  - 979
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.211102.131
DO  - 10.2991/assehr.k.211102.131
ID  - Jaya2021
ER  -