Every business has different goals, but in general the success of the business has always been a primary objective. One of the criteria for achieving business success is the efficiency, if it has achieved a high level of profitability. Cycle management operations as well as managing assets effectively and efficiently greatly affect on the achievement of a high level of profitability in a company.
The purpose of this study is to determine the effect of the operating cycle of the basic earning power, asset turnover of the basic earnings power, and the operating cycle and asset turnover to basic earning power at PT. Kimia Farma Tbk and PT.Kalbe Farma Tbk. Determines how much influence these three variables.
The results of this study indicate that the results of the operating cycle with the period 2010-2014 (the period of 5 years) in PT. Kimia Farma Tbk and PT. Kalbe Farma is operating cycles by using the indicator Average Age Inventory and Receivables Period Average (X1) and asset turnover using indicators Total Asset Turn Over (X2), of the Basic Earning power using Power indicator Basic earnings (Y) has a significant influence on the period 2010-2014 looks at the significant value of 0.000 on the variables X1 and X2 due to 0,000 in less than 0.05 or 5%. This was due to the increase and decrease in the operating cycle and Total Asset Turn Over of Basic Earning Power.
Keywords: Operating cycle, Asset Turn Over and Basic Earning Power.