Work

The Effect of Working Capital and Operating Cost on the Profitability of PT Adhi Karya in 2021–2023

Year: 2024

Type: article

Abstract: Corporate financial management literature often mentions about the relationship between working capital and operational costs when it comes to profitability. These two should be well balanced to maintain the health of the firm’s finances since the large costs endured by a company will decrease the company’s profitability. Therefore, a company must have capital that at least meets the amount of operating costs in a company. This study aims to examine the effect of working capital and operating costs have on profitability in a company who has a struggle to manage effective working capital. Using quantitative methods, we found that working capital affects profitability, but operational costs surprisingly do not affect profitability

Source: Proceeding of The International Seminar on Business Economics Social Science and Technology (ISBEST)

DOI: 10.33830/isbest.v4i1.3265

Authors: Dewi Amalia, Elisabeth Ria Viana Praningtyas

Institution: Indonesia Open University

Language: English

Topic: Working Capital and Financial Performance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4404087661

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