CURRENT RATIO PREDICTION BASED ON CHANGES INCREASED CASH TURNOVER AND TURNOVER RECEIVABLES FROM MANUFACTURING COMPANIES REGISTERED CEMENT SUB SECTORS ON THE INDONESIAN STOCK EXCHANGE PERIOD 2006-2017

Abstract

The building materials sector is one of the sectors that is a mainstay of economic growth and is often required to continue to increase its contribution as measured by national GDP. This is a serious challenge, considering that the global economy is currently in crisis, which needs to be feared that it will have an impact on increasing infrastructure production process costs and decreasing banking liquidity levels (which makes it difficult to obtain credit, including capital and guarantees). This type of research uses basic research which aims to find new knowledge about new phenomena about fundamental phenomena. Sample selection used the Porposive Sampling method. The results partially show that Cash Turnover has an effect on the Current Ratio, while Receivables Turnover has no effect on the Current Ratio. Simultaneously, the variables Cash Turnover and Receivables Turnover influence the Current Ratio. In this way, cash will be used more quickly to finance all the company's operational activities so that it does not disrupt the company's financial condition and the higher the company's receivables turnover, the better it will be, because the company is able to control its receivables to avoid bad debts.