High operational costs hinder profits at Belu's Regional Drinking Water Company.
The study analyzed how operating costs affect the profitability of a drinking water company in Belu Regency. By looking at expenses and income ratios, the researchers found that the company's profits have been inconsistent. This suggests that the company is not maximizing its earnings from sales. Additionally, the company's ability to generate profits has been fluctuating, indicating that it is not utilizing its resources effectively. The researchers believe that the company's high operating costs and suboptimal fund management are the main reasons for its reduced profitability.