Heteroscedastisity Test Classical Assumption Test a. Normality Test

79 From the table above, it can be seen that the Inventory turnover has variable coefficient t 1,419 with a significant level of 0.162, meaning that the variable Inventory turnover has no significant effect toward ROI at level of 1, 5, 10. 4. Test the significance of the coefficient of current ratio X 4 in the regression model: From the table above, it can be seen that the variable coefficient t 3,195 receivable turnover with a significant level of 0.002, meaning that the variable current ratio has significantly positive effect toward ROI at the level of 1. 0.0020.01 From the table above equation or the regression model as follows: Y= 0.958 - 0.077 X 2 + 0.035 X 4 Where, X 2 = Receivable Turnover X 4 = Current Ratio Based on the regression equation can be seen that: 1. Constants of 0.958 states that if the value of the independent variable is zero, then the amount of ROI is 0.958 2. Regression coefficient of receivables turnover 0.077 by stating that each additional 1 from variable receivables turnover - then the value of Y ROI will be reduced by 0.077 which other variables held constant. 80 3. Regression coefficient of current ratio of 0.035 states that each additional 1 from variable current ratio + then the value of Y ROI will increase by 0.035 which other variables held constant.

c. Coefficient of Determination Test R Square Table 4.11

Coefficients Determination Model Summary ยช Model R R Square Adjusted R Square Std. Error of the Estimate 1 .467 a .218 .161 6.04663 b. Dependent Variable: ROI In Table 4.11, obtained a regression model with a coefficient of determination Adjusted R square of 0.161 16.1. The coefficient of determination indicates that 16.1 ROI can be influenced by working capital turnover, receivables turnover, inventories turnover, and current ratio. While 83.9 100-16.1 ROI influenced by other variables.

D. Interpretation

Based on the test results found that the receivables turnover has significant effect toward the profitability of the company. Any negative effect indicates that the smaller the accounts receivable turnover rate will increase the profitability of the company. This is consistent with the theory of Emery 2005, trade receivables are short-term investments are more profitable than