Comparison and Influence of Asset Utilization and Liquidity to Profitability at Boarding Schools in East Indonesia Union Conference

Abstract

 The purpose of this study is to prove the influence of independent variable of asset utilization ratios that are cash turnover, account receivable turnover, working capital turnover and PPE turnover and for independent variable of liquidity that are current ratio, net working capital ratio, collection period, and cash ratio to dependent variable Profitability using return on assets. This research is also to analyze the difference of variance between schools to the ratios under studied. With regression models, the comparison and influence of each variant can be examined. The sample used is Adventist boarding schools within East Indonesia Union Conference which financial statements have been audited from 2005-2010. The results of the analysis show that simultaneously and partially there is no significant influence of asset utilization ratios and liquidity to profitability ratios. There are significant differences between schools on the ratio of cash turnover, working capital turnover, PPE turnover and cash ratio, whereas there are differences in account receivable turnover and collection period.