The influences of earnings, leverage, operating cycle, capital intensity and operating cash flow of the companies registered in Indonesia stock exchange

DOI: 10.5176/2251-1997_AF-62

Authors: Setianingtyas Honggowati and Anastasia Riani Suprapti

Abstract:

This research aims to test the ability of earnings, leverage, operating cycle, capital intensity and operating cash flow to predicting future cash flow of manufacturing and merchandising in Indonesia Stock Exchange (ISX) during year of 2006-2008. This research uses secondary data got from annual report which published in internet at the official website of Indonesia Stock Exchange (ISX) (www.idx.co.id) and data from Indonesia Capital Market Directory (ICMD). Population used in this research is company which in manufacturing and merchandising criteria annualy from 2006-2008. The sample taking in this research uses purposive sampling and based on certain criteria, colleted 80 companies a year. Result of this research shows that variable of earnings, leverage (debt to equity ratio,) operating cycle, capital intensity and operating cash flow simultanly have an influence to predicting future cash flow. While the result of significance t shows that variable earnings, leverage, operating cycle, capital intensity and operating cash flow partially have significant an influence to predicting future cash flow.

Keywords: earnings, leverage, operating cycle, capital intensity, operating cash flow, future cash flow, manufacturing, merchandising.