Does Working Capital Management Impact Profitability? A Study on ASEAN-5 Food and Beverage Companies
Dublin Core
Title
Does Working Capital Management Impact Profitability? A Study on ASEAN-5 Food and Beverage Companies
Subject
Working capital management, Profitability, Food and beverage
Description
Objective: This study aims to examine the impact of working capital management on profitability of go-public ASEAN-5 food and beverage companies.
Design/Methods/Approach: This study employs multiple linear regression analysis on secondary financial data of go-public ASEAN-5 food and beverage companies from 2017-2022. The sample for the research is deliberately chosen through purposive sampling technique.
Findings: The results indicate that the cash conversion cycle (CCC), receivable conversion period (RCP), and accounts payable period (APP) have a significant negative impact on profitability, proxied by return on assets (ROA), while the inventory conversion period (ICP) has a positive effect on profitability.
Originality/Value: This study uniquely explores the food and beverage sector in the ASEAN-5 region with adding the dimension of crisis, COVID-19 pandemic.
Practical/Policy implication: Based on the results, food and beverage sector managers should be more careful in making investment decisions regarding inventory, especially during a crisis. Also, maintaining good trade relations with suppliers through timely debt payment would be better.
Design/Methods/Approach: This study employs multiple linear regression analysis on secondary financial data of go-public ASEAN-5 food and beverage companies from 2017-2022. The sample for the research is deliberately chosen through purposive sampling technique.
Findings: The results indicate that the cash conversion cycle (CCC), receivable conversion period (RCP), and accounts payable period (APP) have a significant negative impact on profitability, proxied by return on assets (ROA), while the inventory conversion period (ICP) has a positive effect on profitability.
Originality/Value: This study uniquely explores the food and beverage sector in the ASEAN-5 region with adding the dimension of crisis, COVID-19 pandemic.
Practical/Policy implication: Based on the results, food and beverage sector managers should be more careful in making investment decisions regarding inventory, especially during a crisis. Also, maintaining good trade relations with suppliers through timely debt payment would be better.
Creator
*Salsabila Gading Rahmadani, Irene Rini Demi Pangestuti
Source
https://e-journal.unair.ac.id/jmtt
Date
May 21, 2024;
Contributor
PERI IRAWAN
Format
PDF
Language
ENGLISH
Type
TEXT
Files
Collection
Citation
*Salsabila Gading Rahmadani, Irene Rini Demi Pangestuti, “Does Working Capital Management Impact Profitability? A Study on ASEAN-5 Food and Beverage Companies,” Repository Horizon University Indonesia, accessed March 14, 2025, https://repository.horizon.ac.id/items/show/5869.