Analysis of the Influence of Working Capital Management and Cash Holding on Profitability: An Empirical Study of Nonfinancial Sector Companies in Indonesia

The purpose of this study is to analyze the effect of working capital management on the profitability of non-financial companies listed on the Indonesia Stock Exchange for the period 2019 – 2023.The population in this study is all non-financial companies listed on the Indonesia Stock Exchange (IDX) during the period 2019 to 2023. The sample selection applied was purposive sampling, so that the research sample was 545 companies. The analysis technique used panel data regression with Stata 19 software through model consistency testing and t and F hypothesis tests. The results showed that the fixed effect model was the best model selected. Net Working Capital (NWC) has no significant effect on the profitability of non-financial sector companies, Cash holding has a positive and significant effect on the profitability of non-financial sector companies, The interaction between NWC and the COVID-19 crisis has a positive and significant effect on the profitability of non-financial sector companies, and The interaction between cash holding and the crisis has no significant effect on the profitability of non-financial sector companies.