Business, Management and Accounting
4 years ago

Optimizing working capital boosts profits for Indonesian consumer goods companies.

Accounting
The effect of working capital management, fixed financial asset ratio, financial debt ratio on profitability in Indonesian consumer goods sector
Metya Kartikasary, Frihardina Marsintauli, Martogi Sitinjak, Sebastianus Laurens, Eka Novianti, Roni Patar Situmorang

Paper Summary

The study looked at how managing working capital, fixed assets, and debt ratios affects the profitability of consumer goods companies in Indonesia. They analyzed data from 46 companies over three years and found that good working capital management and fixed asset ratios positively impact profitability. However, the level of financial debt did not have a significant effect on profitability.

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