The Effect of Working Capital, Liquidity, and Leverage on Profitability: Empirical Study of Manufacturing Companies in Indonesia Stock Exchange 2012-2016

This study to determine the effect of working capital, liquidity and leverage on the profitability. The research sample consisted of 54 companies through purpose sampling. Research data is taken from published financial statements. Panel data process using the EViews 10 application. Panel data analysis was carried out root test and regression model selection through chow test, hausman test, and lagrange multiplier test. The results of the study show that working capital, liquidity and leverage have an influence on the profitability of manufacturing companies. Working capital has a significant positive effect on profitability, liquidity has no effect on profitability, and leverage has a significant negative effect on profitability.