Analysis of Working Capital Management on The Profitability of The Company (Study on Manufacturing Company Sector Food and Consumption Goods Listed on IDX stock exchange)

Working capital management plays a vital role in the company’s daily operation and it also determine how success of businesses because its effect on company profitability (ROA). The purpose of this study is to analyse what is the relationship between working capital management practices and profitability of Manufacturing Company sector Food and Consumption Goods listed in Indonesian Stock Exchange (IDX) from year 2009-2013. The study used secondary data by collected using ICMD from the 11 listed manufacturing firms. The Study finds a negative relationship between Profitability and Working Capital Turnover also a negative relationship between Profitability and Inventory Turnover. However, Cash Turnover gives positive relationship to Profitability. The result from this study finds there are no significant influence between Working Capital Management and Profitability. So, using Signaling Theory the Company that have a high profit, It does not indicate the company can manage Working Capital well, and company that can manage Working Capital well, it cannot guarantee that the Company will get a high profit. Keywords: Working Capital Turnover, Cash Turnver, Inventory Turnover, Profitabilit