Open AccessCollectibility Improvement In PT. Kaltim Prima Coal Receivables Management: A Framework Roadmap Proposal
Author(s) -
Zuhri Ruslan,
Anggoro Budi Nugroho
Publication year - 2022
Publication title -
jurnal sosial dan sains/jurnal sosial dan sains
Language(s) - English
Resource type - Journals
eISSN - 2774-700X
pISSN - 2774-7018
DOI - 10.36418/sosains.v2i1.320
Subject(s) - cash conversion cycle , accounts payable , working capital , accounts receivable , business , payment , checklist , finance , actuarial science , cash , operating cash flow , accounting , operations management , economics , psychology , cognitive psychology
Background : The Importance of efficient working capital management is indisputable given that a firm’s viability relies on the financial manager’s ability to effectively manage receivables, inventory, and payables. One of widely used measurement to calculate the effectiveness of working capital management is Cash Conversion Cycle. Purpose : Traditional Cash Conversion Cycle is calculated using items from Financial Statement. However, it is proofed to be overstated compare to the actual calculation. Based on a comparison with Cash Conversion Cycle of another company listed on Indonesian Stock Exchange, Cash Conversion Cycle of PT Kaltim Prima Coal seems to be superior with lower days it needs to convert inventory into cash and longer time to pay its payables. Method: This research uses a quantitative approach method. Results : The research found that based on the regression method, days of late payment and sales amounts of late payment have significant relationship with Profit. Days of late payment and sales amounts of late payment have significant relationship with ROA. And, Days of late payment and sales amounts of late payment also have significant relationship with NPM. Conclusion : Variables of tourist attraction and price simultaneously influence the decision to visit the Blue Kersik beach, Marangkayu.