Analysis of the Effect of Total Asset Turnover (TATO), Cost of Goods Sold (CGS), and Net Working Capital (NWC) on Net Profit Margin (NPM) in Food and Beverage Sub-Sector Companies Listed on the Indonesia Stock Exchange 2016-2018

Y Hadi, M Sukmawati, VEH Sinaga, B Sofhia

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Abstract

This study aims to determine the effect of Total Asset Turnover (TATO), Cost of Goods Sold (CGS) and Net Working Capital (NWC) on Net Profit Margin (NPM). The population in this study are food and beverage sub-sector companies listed on the Indonesia Stock Exchange. The sampling technique in this study used purposive sampling and obtained 14 samples of companies that were used as criteria for food and beverage sub-sector companies listed on the Indonesia Stock Exchange (IDX) during 2016-2018. Testing the hypothesis of this study using quantitative descriptive methods and panel data regression analysis using the eviews 10 for windows operating system. The results in this study indicate that the independent variable total asset turnover has no effect on the net profit margin, the cost of production has an effect on the net profit margin and net working capital has an effect on the net profit margin. simultaneously the independent variables total asset turnover, cost of production and net working capital have a significant effect on the net profit margin.

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