The Impact of Working Capital on Financial Performance Moderated by Dividend Policy and Financial Ratios: A Study of Manufacturing Companies in Indonesia

Lutfi Adnan Affif; Asfina Nor Husna; Henny Setyo Lestari; Farah Margaretha Leon

doi:10.31538/mjifm.v6i1.732

The Impact of Working Capital on Financial Performance Moderated by Dividend Policy and Financial Ratios: A Study of Manufacturing Companies in Indonesia

Authors

Lutfi Adnan Affif Universitas Trisakti, Jakarta, Indonesia
Asfina Nor Husna Universitas Trisakti, Jakarta, Indonesia
Henny Setyo Lestari Universitas Trisakti, Jakarta, Indonesia
Farah Margaretha Leon Universitas Trisakti, Jakarta, Indonesia

DOI:

https://doi.org/10.31538/mjifm.v6i1.732

Keywords:

Financial Performance, Return on Asset, Cash Conversion Cycle, Leverage, Sales Growth, Investment Policy, Firm Size, Inflation, Dividend Payout Ratio

Abstract

This study aims to analyze the impact of working capital on financial performance moderated by dividend policy and financial ratios at manufacturing companies in Indonesia. This research method uses a panel data regression, utilizing Eviews 9.0 software for data processing. The sample for this study includes 47 technology and manufacturing companies listed on the IDX with consistent data available for the 2020–2024 observation period. This study adopts a hypothesis-testing design to analyze the effects of the Cash Conversion Cycle, Leverage, Sales Growth, and Investment Policy on Financial Performance (ROA). Additionally, the model incorporates Size and Inflation as control variables and Dividend Payout Ratio as the moderating variable.

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Published

2026-02-03

How to Cite

Affif, L. A., Husna, A. N., Lestari, H. S., & Leon, F. M. (2026). The Impact of Working Capital on Financial Performance Moderated by Dividend Policy and Financial Ratios: A Study of Manufacturing Companies in Indonesia. Majapahit Journal of Islamic Finance and Management, 6(1), 453–471. https://doi.org/10.31538/mjifm.v6i1.732