Inventory Position and Performance of Railroad Transportation Services in Indonesia

Abstract

This study aims to determine the position of inventory on the profitability of rail transport services company. Research on the effect of stock position on Return On Equity (ROE), Return On Invesment (ROI) and Inventory Turnover (PP) has been done by quantitative method. The results of previous studies on the relationship of inventory with profitability have different results on each research object so it becomes the motivation in this study.This research is quantitative research type. The population of this study are all Financial Statements of PT Kereta Api Indonesia (Persero) (PT KAI). The sample used is the financial report of PT KAI in 2008 – 2016’, so it counts 9 years of the data being research commonly. Data analysis techniques used commond size analysis and multiple regression analysis. The results showed that for the classical assumption test did not occur violation of normality, autocorrelation, heterocedasticity and multicollinearity. After hypothesis testing, it is found that the alternative hypothesis (H1) unacceptable so the null hypothesis (H0) is accepted. Inventory of Facilities (Ps), Street Supply and Bridge (Pjj) and Inventory of Signal, Telecommunication and Electricity (Psin) have no effect to ROE. It was also found that the alternative hypothesis (H2) unacceptable so its null hypothesis (H0) is accepted. In other words the Facilities Inventory (Ps), Street Supply and Bridges (Pjj) and Inventory of Signals, Telecommunications and Electricity (Psin) have no effect on ROI. It was also found that the alternative hypothesis (H3) unacceptable so its null hypothesis (H0) is accepted. In other words the Facilities Inventory (Ps), Street Supply and Bridges (Pjj) and Inventory of Signals, Telecommunications and Electricity (Psin) have no effect on PP. This is logic because the inventory data used is the total ending inventory. The total ending inventory is not an element of the profit / loss statement itself