The Influence of Working Capital Ratio and Debt Ratio to Rentability at PT. Holcim Indonesia, Tbk for the Period 2010-2019

Nowdays the global economy is experiencing significant changes that affect all aspects of life, especially if it is related to advances in science and technology, of course it will make all joints of the global economy continue to determine concrete steps to balance the conditions of science and technology. In the industrial sector, advances in science and technology have resulted in the emergence of various new products, many company founders have produced a variety of similar products with different brands, causing increasingly rapid competition. A company will be considered successful if it earns normal profit according to the company's plan, Economic growth and the implications of globalization make all types of business fields compete fiercely. For companies, it is a challenge in order to survive and thrive in a business environment that has high uncertainty. In high uncertainty, management must have tools to assist them in planning and allocating limited resources. The economic development of a country can be measured in many ways, one of which is by knowing the level of world capital market development. The capital market is a place for investors to conduct investment activities. Investors in investing funds into a company will be faced with return on investment in the form of dividends and capital gains. Capital gains are capital gains derived from the difference between the purchase price and the selling price of the shares, while the dividends are the portion of net income distributed by the company to shareholders. (Angelia and Toni, 2020) In general, the company's goal is to obtain maximum profit. By obtaining maximum profits, the company can maintain its survival and can continue to grow and provide beneficial Abstract

returns for its owners. However, in today's increasingly competitive conditions, this goal is not easy to achieve. Company management is required to be able to manage its resources more effectively and efficiently and to be able to produce decisions that support the achievement of company goals.
To measure the success of a company in an effort to realize efficient company operations in generating profits, it can not only be seen from the size of the amount of profit earned, but can be seen from its profitability. According to Bambang Hermanto (2015: 114) Profitability is the ratio to assess the company's ability to seek profits or profits in a certain period. It is said that the company has a good profitability if it is able to meet the profit target that has been set by using its assets or capital. According to Bambang Hermanto (2015: 114) Economic profitability is by comparing operating profits with all capital (own and foreign capital).
The high level of profitability reflects that the business entity is able to work effectively and efficiently in its operational activities. In measuring the success of a company that is efficient and generates profit, it can be seen in terms of profitability, so profitability can also be interpreted as a comparison between the profit generated by the company and the assets or capital used to generate that profit. High profitability indicates that the company is more efficient in running its operations, which means that the company has a great ability to generate profits.
In running its operating activities the company requires working capital. Working capital is a fund embedded in the company's current assets which is used to finance the company's day-to-day operations, for example to buy raw materials or merchandise, pay labor and employee salaries, and other costs.
To assess the effectiveness of the use of working capital from company activities, the working capital turnover ratio is used. Working capital is always in a state of operation or rotating within the company as long as the company concerned is in business. The working capital turnover period starts from the time when cash is invested in the components of working capital until it returns to cash. According to Kasmir (2010: 114), working capital turnover is a ratio to measure or assess the effectiveness of a company's working capital during a certain period. That is, how much working capital rotates during a period or in a period. To measure this ratio we compare sales with working capital or with average working capital.
The debt is often referred to as an obligation which in a simple sense can be interpreted as a financial obligation that must be paid by the company to other parties. According to Munawir (2010: 18) Debt is all the company's financial obligations to other parties that have not been fulfilled, where this debt is a source of funds or company capital that comes from creditors.
To assess the extent to which a company uses its debts, the debt to total assets ratio can be used. According to Kasmir (2010: 112) Debt to Assets Ratio or Debt Ratio, is a debt ratio used to measure how much the company's assets are financed by debt or how much the company's debt affects asset management. The trick is to compare the total debt to total assets. Company management must be able to make the right policies in making funding decisions to obtain assets used in operations in order to generate maximum profit. Meanwhile, according to Brigham Houston (2013: 143), the ratio of total debt to total assets, which is generally called the debt ratio, measures the percentage of funds provided by creditors, total debt including all current liabilities and long-term debt. Creditors prefer a low debt ratio because the lower the debt ratio, the greater the protection against creditors' losses in the event of liquidation. On the other hand, shareholders may want more leverage because it will increase their expected profit.
PT Holcim Indonesia Tbk is a cement producer company. The company, formerly known as PT Semen Cibinong Tbk, was founded in 1971. Having a vision to provide sustainable solutions to build the future of Indonesian society has a mission to build a company that provides added value to stakeholders by providing development solutions according to sustainable principles for each particular customer segment, pay attention to safety and environmental sustainability, and foster human resource capabilities, innovate and build a strong network. The following is data on working capital turnover, debt ratio and economic profitability at PT. Holcim Indonesia, Tbk for the period 2010-2019. Based on the data in the table above, it shows that the company during the years 2010-2019 for working capital turnover fluctuated with different annual turnover, generally known as an average of 8.29. The debt ratio also fluctuates with different annual earnings, generally it is known that the average is 37.76%. For the economic profitability also fluctuates with the income each year is different, in general it is known that the average reaches 13.21%.
Based on the description above, the authors are interested in conducting research on working capital ratios and debt to profitability ratios as outlined in the thesis with the title: "The Effect of Working Capital Ratio and Debt Ratio to Rentability at PT. Holcim Indonesia, Tbk Period 2010-2019".

Working Capital Ratio
According to Kasmir (2015: 182), working capital turnover is a ratio to measure or assess the effectiveness of the company's working capital during a certain period. That is, how much working capital rotates during a period or in a period. To measure this ratio, we compare sales with working capital or with average working capital.

Debt Ratio
According to Horne (2009: 209), the ratio of debt to total assets (Debt to total assets ratio) is obtained from dividing the company's debt by its total assets. This ratio emphasizes the important role of debt financing for the company by showing the percentage of company assets that are supported by debt financing. The higher the debt to total asset ratio, the greater the financial risk; the lower this ratio, the lower the financial risk.
The debt policy is a policy to determine the funds of each company that comes from external sources. Managers in each company can pay attention to the risks of using debt in determining the proportion of debt appropriately in order to increase the value of the company. However, in fact there is disruption and inconsistency of debt policy resulting in a decrease in the value of the company so that the statement where the debt policy can increase the value of a company is not as expected. (Afiezan et al, 2020)

Rentability
According to Bambang Riyanto (2010: 48) "Profitability of a company shows the comparison between profit and assets or capital that produces profit, in other words, profitability is the ability of a company to generate profits during a certain period". According to Bambang Hermanto (2015: 114) "Economic profitability is by comparing operating profits with all capital (own and foreign capital)."

III. Research Methods
The population in this study based on financial reports for 10 years PT. Holcim Indonesia, Tbk. The sampling technique in this study was saturated sample, where all members of the population were sampled. Thus the sample in this study financial statements for 10 years. The type of research used is associative, where the aim is to find out how to find the relationship between the independent variables and the dependent variable In analyzing the data, the classical assumption test, regression, correlation coefficient, determination coefficient and hypothesis test were used, either partially or simultaneously.

Descriptive Analysis
This test is used to determine the minimum and maximum percentage, average percentage and standard deviation of each variable. The results are as follows: The working capital ratio obtained a minimum value of 5.55 trillion and a maximum value of 14.32 trillion with an average of 8.28 trillion with a standard deviation of 3.194. The debt ratio obtained a minimum value of 30.82% and a maximum value of 49.06% with an average value of 37.75% with a standard deviation of 6.418%. Profitability obtained a minimum value of 7.51% and a maximum value of 19.75% with an average of 13.21% with a standard deviation of 3.763%.

Verification Analysis
This analysis aims to determine the effect of the independent variable on the dependent variable. The test results are as follows:

a. Multiple Linear Regression Analysis
This regression test is intended to determine changes in the dependent variable if the independent variable changes. The test results are as follows: 2) The regression coefficient of the working capital ratio is 0.621, this number is positive, meaning that every time there is an increase in the working capital ratio of 0.621, then the profitability will also increase by 0.621 points.
3) The debt ratio regression coefficient is -0.430, this figure is negative, meaning that every time there is an increase in the debt ratio of 0.430, then the profitability will decrease by -0.430 points.

b. Correlation Coefficient Analysis
Correlation coefficient analysis is intended to determine the level of strength of the relationship between the independent variable and the dependent variable either partially or simultaneously. The test results are as follows: .036 *. Correlation is significant at the 0.05 level (2-tailed). b. Listwise N = 10 Based on the test results obtained a correlation value of 0.666 means that the working capital ratio has a strong relationship to Rentability. .003 **. Correlation is significant at the 0.01 level (2-tailed). b. Listwise N = 10 Based on the test results obtained a correlation value of -0.833 means that the debt ratio has a very strong negative relationship to Profitability. Based on the test results obtained a correlation value of 0.981 means that the working capital ratio and debt ratio simultaneously have a very strong relationship to profitability.

c. Analysis of the Coefficient of Determination
Analysis of the coefficient of determination is intended to determine the percentage of influence of the independent variable on the dependent variable either partially or simultaneously. The test results are as follows: Based on the test results, it was found that the determination value was 0.443, meaning that the working capital ratio had an influence of 44.3% on Profitability. Based on the test results obtained a determination value of 0.694 means that the debt ratio has an influence contribution of 69.4% on profitability. Based on the test results, the determination value is 0.962, meaning that the working capital ratio and debt ratio simultaneously have an influence contribution of 96.2% to Profitability, while the remaining 3.8% is influenced by other factors.

d. Hypothesis Testing 1. Partial hypothesis test (t test)
Hypothesis testing with the t test is used to determine which partial hypothesis is accepted. Based on the test results in the table above, the value of t count> t table or (2.552> 2.306) is obtained, thus there is a significant influence between the ratio of working capital to profitability. Based on the test results in the table above, the value of t count <t table or (-4,258 <2,306) is obtained, thus there is a significant negative effect between the ratio of debt to profitability.

Simultaneous Hypothesis Test (Test F)
Hypothesis testing with the F test is used to determine which simultaneous hypothesis is accepted.

Effect of Working Capital Ratio on Profitability
The working capital ratio has a significant effect on Rentability with a correlation of 0.666 or has a strong relationship with a contribution of influence of 44.3%. Hypothesis testing obtained t value> t table or (2.552> 2.306). Thus there is a significant influence between the ratio of working capital to Rentability.

Effect of Debt Ratio on Profitability
The debt ratio has a significant effect on Rentability with a correlation of -0.833 or has a very strong negative relationship with a contribution of influence of 69.4%. Hypothesis testing obtained t value <t table or (-4,258 <2,306). Thus there is a significant negative effect between the debt ratio to Rentability.

Effect of Working Capital Ratios and Debt Ratios on Profitability
Working capital ratios and debt ratios have a significant effect on profitability by obtaining the regression equation Y = 24.307 + 0.621X1 -0.430X2, the correlation value is 0.981 or has a strong relationship with the influence contribution of 96.2% while the remaining 3.8% is influenced by factors other. Hypothesis testing obtained the value of F count> F table or (88,636> 4,350). Thus, there is a significant influence between working capital ratio and debt ratio to profitability.

Suggestion
a. The working capital ratio or used in this study is the working capital turnover at PT. Holcim Indonesia, Tbk has not all been effective, for better management it is better to minimize the amount of current liabilities contained in the balance sheet to improve negative working capital turnover and in order to increase company profitability, steps that can be taken are to reduce or reduce working capital turnover by means of one of them is to streamline the collection of receivables from customers so that cash is quickly collected. b. The debt ratio or used in this study is the Debt to Total Assets Ratio at PT. Holcim Indonesia, Tbk is not all stable, for better the management of the company should have more control over the debt ratio so that each debt is under control. c. Rentability or used in this research is economic profitability at PT. Holcim Indonesia, Tbk is not yet optimal. To be even better, management should increase its profitability by optimizing the company's EBIT (operating profit) so that it will have a positive impact on increasing economic profitability.