Proceedings of the 8th International Conference on Business, Economics, Social Sciences, and Humanities - Economics, Business and Management Track (ICOBEST-EBM 2025)

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The Relationship Between Debt and Cash Turnover Towards Company Profitability in The Digital Era

Authors
Wati Aris Astuti1, *, Misael Stephen2
1Lecturer in Accounting Faculty Economy and Business, Universitas Komputer Indonesia, Jl. Dipati Ukur No.112-116, Kota Bandung, Indonesia
2Student of Accounting Study Program, Universitas Komputer Indonesia, Jl. Dipati Ukur No.112-116, Kota Bandung, Indonesia
*Corresponding author. Email: wati.aris.astuti@email.unikom.ac.id
Corresponding Author
Wati Aris Astuti
Available Online 24 July 2025.
DOI
10.2991/978-94-6463-795-3_2How to use a DOI?
Keywords
Debt; Cash turnover; Profitability
Abstract

This study aims to comprehensively analyze the influence of debt management and cash turnover on the profitability of public infrastructure sector companies listed on the Indonesia Stock Exchange (IDX) during the period from 2019 to 2023. The research methodology includes descriptive analysis to provide an overview of the financial condition of the companies, as well as verification analysis to examine the causal relationship between the studied variables using a quantitative approach. The research population consists of financial statements, particularly income statements and statements of financial position, from infrastructure companies listed on the IDX during the specified period. A purposive sampling technique was employed to select samples based on specific criteria, such as the completeness of financial data and consistency in reporting over the five-year period. Based on these criteria, a total of 50 financial reports were selected as research samples. The findings reveal that debt has a significant positive effect on profitability, indicating that well-managed debt utilization can enhance a company’s profitability. Additionally, cash turnover also shows a significant positive effect on profitability, highlighting the importance of efficient cash flow management in supporting a company’s financial performance. In conclusion, both debt management and cash turnover play a critical role in improving the profitability of public infrastructure sector companies on the IDX, suggesting that companies should focus on optimizing these financial aspects to achieve better financial outcomes.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 8th International Conference on Business, Economics, Social Sciences, and Humanities - Economics, Business and Management Track (ICOBEST-EBM 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
24 July 2025
ISBN
978-94-6463-795-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-795-3_2How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Wati Aris Astuti
AU  - Misael Stephen
PY  - 2025
DA  - 2025/07/24
TI  - The Relationship Between Debt and Cash Turnover Towards Company Profitability in The Digital Era
BT  - Proceedings of the 8th International Conference on Business, Economics, Social Sciences, and Humanities - Economics, Business and Management Track (ICOBEST-EBM 2025)
PB  - Atlantis Press
SP  - 4
EP  - 12
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-795-3_2
DO  - 10.2991/978-94-6463-795-3_2
ID  - Astuti2025
ER  -