45 According to Sarkat & Sarkat (2013) says that there are negative and positive relationships between working capital element and the profitability of a company, where in the previous analysis supported the idea that each companies has differences in their working capital elements. 5.2 Conclusion and Implementation The result of this analysis report can be summarised according to the findings in chapter 4 that each of the ten mining companies listed in Indonesian Stock Exchange has their own financial key performance indicator and also has its own financial structure and behavior. The findings suggested that between working capital element and the profitability ratio (ROA) there are some positive but week correlations, as well as negative correlations between them. Moreover, the negative correlations are even a bit stronger than the positive correlations. This suggested that profitability are not dependent to the element of working capital such as; cash conversion cycle, inventory turnover, average collection period, and current ratio. The study showed that profitability on the other hand has medium negative correlations to the average collection period, which means when average collection period goes up; return on asset percentage will go down. On the other hand, some of the elements of working capital have a very week correlations between them with the profitability. This indication showed that in the 10 mining companies in Indonesia the relationships between working capital and profitability has a week relationships. The reason behind this analysis that the indication could be rely on each company and their management whether they are managing their working capital well or not, also depend on the resources of the company and how strong they have their financial position. Where in this study
46 the company size specifically was not analysed only the working capital elements and its relationships with profitability of the company. 5.3 Recommendation Further study on this field can be conducted to find the relationships between working capital management and profitability of mining company. Especially in Indonesia this type of study for specific area such as mining has very little or even no study that was conducted. Furthermore, study can be conducted in this filed related to the company size, financial structure, owner structure of the company, or the element of government or non government own company. All this can be good bases of further study on this mining industry. So, that more information can be analyzed and produce the result that will be benefit for government or private organization that are looking for some information related to mining industry and how companies in this field perform and manage its financial resources.
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50 APPENDICES APPENDIX A: Mining Companies Included in the Study Company Name Listed Code in IDX 1. PT. Adaro Energy Tbk ADRO 2. PT. Vale Indonesia Tbk INCO 3. PT. Indo Tambangraya Mega Tbk ITMG 4. PT. Delta Dunia Makmur Tbk DOID 5. PT. Bayan Resources Tbk BYAN 6. PT. Medco Energy International Tbk MEDC 7. PT. Harum Energy Tbk HRUM 8. PT. Golden Energy Mines Tbk GEMS 9. PT. Baramulti Suksessarana Tbk BSSR 10. PT. Aneka Tambang Tbk ANTM APPENDIX B: Elements of Working Capital (CCC, IT, ACP, CR, WC, ROA) Cash Conversion Cycle (CCC) Years Name of Company 2011 2012 2013 2014 2015 PT. Adaro Energy Tbk (3.58) 3.85 6.80 (0.87) 0.50 PT. Vale Indonesia Tbk 64.27 70.32 72.82 67.29 66.23 PT. Indo Tambangraya Mega Tbk 7.59 12.89 22.82 22.79 26.74 PT. Delta Dunia Makmur Tbk 44.39 62.38 78.15 70.3 85.52 PT. Bayan Resources Tbk 6.51 17.75 16.1 -0.13 16.08 PT. Medco Energy International Tbk 21.27 5.51 8.58 10.82 10.23 PT. Harum Energy Tbk 27.58 29.95 21.26 -5.94 -20.77 PT. Golden Energy Mines Tbk 4.85 3.34 -6.57 -16.13 -11.01 PT. Baramulti Susessarana Tbk -68.48 -3.85 20.96 16.3 14.56 PT. Aneka Tambang (Persero) Tbk 109.84 103.64 96.15 83.83 52.56
51 Inventory Turnover Years Name of Company 2011 2012 2013 2014 2015 PT. Adaro Energy Tbk 60.86 45.85 30.45 26.12 25.26 PT. Vale Indonesia Tbk 5.49 5.07 5.15 5.04 5.52 PT. Indo Tambangraya Mega Tbk 16.79 13.16 12.28 11.34 9.27 PT. Delta Dunia Makmur Tbk 15.48 15.36 16.32 18.76 20.23 PT. Bayan Resources Tbk 9.79 7.02 5.82 6.23 3.91 PT. Medco Energy International Tbk 19.74 10.03 14.16 12.55 10.58 PT. Harum Energy Tbk 9.38 8.47 10.17 17.32 16.59 PT. Golden Energy Mines Tbk 27.73 31.47 26.13 25.13 18.67 PT. Baramulti Susessarana Tbk 5.75 5.09 5.78 13.18 22.43 PT. Aneka Tambang (Persero) Tbk 2.57 2.87 2.88 2.99 4.26 Average Collection Period Years Name of Company 2011 2012 2013 2014 2015 PT. Adaro Energy Tbk 36.98 46.32 43.55 32.64 32.70 PT. Vale Indonesia Tbk 29.29 35.47 35.36 27.88 39.50 PT. Indo Tambangraya Mega Tbk 0.92 16.87 31.52 29.89 29.41 PT. Delta Dunia Makmur Tbk 74.03 85.28 99.72 86.28 90.34 PT. Bayan Resources Tbk 18.24 19.82 21.85 22.39 38.34 PT. Medco Energy International Tbk 61.13 63.58 49.05 51.99 48.6 PT. Harum Energy Tbk 5.31 12.44 24.39 26.6 24.36 PT. Golden Energy Mines Tbk 22.22 21.04 18.56 21.84 32.5 PT. Baramulti Susessarana Tbk 2.94 7.07 10.47 16.67 21.93 PT. Aneka Tambang (Persero) Tbk 40.96 44.32 39.8 32.98 22.2 Current Ratio Years Name of Company 2011 2012 2013 2014 2015 PT. Adaro Energy Tbk 1.67 1.57 1.77 1.64 2.41 PT. Vale Indonesia Tbk 4.36 3.41 3.30 2.98 4.04 PT. Indo Tambangraya Mega Tbk 2.37 2.22 1.99 1.56 1.8 PT. Delta Dunia Makmur Tbk 1.69 1.47 1.21 1.74 2.05 PT. Bayan Resources Tbk 0.65 1.16 1.1 0.62 1.89 PT. Medco Energy International Tbk 1.61 2.65 2 1.61 1.98 PT. Harum Energy Tbk 2.68 3.13 3.45 3.58 6.91 PT. Golden Energy Mines Tbk 5.42 3.55 1.83 2.2 2.79 PT. Baramulti Susessarana Tbk 1.06 1.68 0.49 0.67 0.84 PT. Aneka Tambang (Persero) Tbk 8.19 1.93 1.41 1.26 1.99
52 Working Capital Years 2011 2012 2013 2014 2015 PT. Adaro Energy Tbk 519 515 597 497 639 PT. Vale Indonesia Tbk 602 399 389 413 451 PT. Indo Tambangraya Mega Tbk 616 532 372 205 228 PT. Delta Dunia Makmur Tbk 259 180 122 175 205 PT. Bayan Resources Tbk -214 62 43 -196 132 PT. Medco Energy International Tbk 491 712 411 283 518 PT. Harum Energy Tbk 198 228 202 202 193 PT. Golden Energy Mines Tbk 223 133 69 77 126 PT. Baramulti Susessarana Tbk 3 32 -34 -19 -9 PT. Aneka Tambang (Persero) Tbk 683.76 354.2 227.92 187.11 528.22 Return on Asset (%) Years 2011 2012 2013 2014 2015 PT. Adaro Energy Tbk 10.88 6.24 3.44 2.71 2.46 PT. Vale Indonesia Tbk 14.47 2.84 1.68 7.47 2.18 PT. Indo Tambangraya Mega Tbk 40.94 28.15 15.99 14.83 5.08 PT. Delta Dunia Makmur Tbk -1.67 -1.3 -2.62 1.56 -0.96 PT. Bayan Resources Tbk 16.13 3.24 -2.09 -10.14 -6.14 PT. Medco Energy International Tbk 3.5 0.48 0.49 0.39 -6.7 PT. Harum Energy Tbk 36.18 25.04 8.21 0.09 -4.67 PT. Golden Energy Mines Tbk 12.9 5.09 4.04 3.33 0.59 PT. Baramulti Susessarana Tbk 3.91 8.07 3.17 1.55 15.47 PT. Aneka Tambang (Persero) Tbk 10.71 12.77 1.45 -2.81 -4.25
53 APPENDIX C: Correlations Correlations ROA CCC IT ACP CR WC Pearson Correlation ROA 1.000 -.032 .060 -.442 .100 .183 CCC -.032 1.000 -.390 .475 .224 .230 IT .060 -.390 1.000 .142 -.042 .177 ACP -.442 .475 .142 1.000 .018 .211 CR .100 .224 -.042 .018 1.000 .389 WC .183 .230 .177 .211 .389 1.000 Sig. (1-tailed) ROA .413 .340 .001 .246 .101 CCC .413 .003 .000 .059 .054 IT .340 .003 .163 .385 .109 ACP .001 .000 .163 .451 .071 CR .246 .059 .385 .451 .003 WC .101 .054 .109 .071 .003 N ROA 50 50 50 50 50 50 CCC 50 50 50 50 50 50 IT 50 50 50 50 50 50 ACP 50 50 50 50 50 50 CR 50 50 50 50 50 50 WC 50 50 50 50 50 50 APPENDIX D: Descriptive Statistics Descriptive Statistics Mean Std. Deviation N ROA 5.8874 10.17354 50 CCC 26.9198 36.55825 50 IT 14.4502 11.38298 50 ACP 34.9508 22.38860 50 CR 2.3648 1.47863 50 WC 275.2442 227.02369 50
54 APPENDIX E: Model Summary and ANOVA Model Summaryb Model R R Square Adjusted R Square Std. Error of the Estimate Change Statistics R Square Change F Change df1 df2 Sig. F Change 1 .588a .346 .271 8.68443 .346 4.649 5 44 .002 a. Predictors: (Constant), WC, IT, ACP, CR, CCC b. Dependent Variable: ROA ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 1753.096 5 350.619 4.649 .002b Residual 3318.453 44 75.419 Total 5071.549 49 a. Dependent Variable: ROA b. Predictors: (Constant), WC, IT, ACP, CR, CCC Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. 95.0% Confidence Interval for B Correlations B Std. Error Beta Lower Bound Upper Bound Zeroorder Partial Part 1 (Constant) 8.893 3.335 2.667 .011 2.172 15.613 CCC .099 .048 .356 2.073 .044 .003 .195 -.032 .298 .253 IT .229 .135 .256 1.703 .096 -.042 .500 .060 .249 .208 ACP -.315 .070 -.692 -4.525 .000 -.455 -.174 -.442 -.563 - .552 CR -.286 .933 -.042 -.307 .760 -2.166 1.594 .100 -.046 - .037 WC .010 .006 .218 1.550 .128 -.003 .022 .183 .227 .189
55 a. Dependent Variable: ROA APPENDIX F: Correlations of each element Correlations CCC IT ACP CR WC ROA CCC Pearson Correlation 1 -.390** .475** .224 .230 -.032 Sig. (2-tailed) .005 .000 .119 .108 .826 N 50 50 50 50 50 50 IT Pearson Correlation -.390** 1 .142 -.042 .177 .060 Sig. (2-tailed) .005 .327 .771 .218 .680 N 50 50 50 50 50 50 ACP Pearson Correlation .475** .142 1 .018 .211 -.442** Sig. (2-tailed) .000 .327 .902 .142 .001 N 50 50 50 50 50 50 CR Pearson Correlation .224 -.042 .018 1 .389** .100 Sig. (2-tailed) .119 .771 .902 .005 .491 N 50 50 50 50 50 50 WC Pearson Correlation .230 .177 .211 .389** 1 .183 Sig. (2-tailed) .108 .218 .142 .005 .202 N 50 50 50 50 50 50 ROA Pearson Correlation -.032 .060 -.442** .100 .183 1 Sig. (2-tailed) .826 .680 .001 .491 .202 N 50 50 50 50 50 50 **. Correlation is significant at the 0.01 level (2-tailed).