Proceedings of the 1st MICOSS Mercu Buana International Conference on Social Sciences, MICOSS 2020, September 28-29, 2020, Jakarta, Indonesia

Research Article

The Influence of Working Capital Management on Profitability and its Impact on Loan Interest (Empirical Study at: PT. Bringin Karya Sejahtera from 2012-2016)

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  • @INPROCEEDINGS{10.4108/eai.28-9-2020.2307513,
        author={Endang  Afritiani and Bambang  Mulyana},
        title={The Influence of Working Capital Management on Profitability and its Impact on Loan Interest (Empirical Study at: PT. Bringin Karya Sejahtera from 2012-2016)},
        proceedings={Proceedings of the 1st MICOSS Mercu Buana International Conference on Social Sciences, MICOSS 2020, September 28-29, 2020, Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={MICOSS},
        year={2021},
        month={5},
        keywords={working capital liquidity profitability loan interest rate},
        doi={10.4108/eai.28-9-2020.2307513}
    }
    
  • Endang Afritiani
    Bambang Mulyana
    Year: 2021
    The Influence of Working Capital Management on Profitability and its Impact on Loan Interest (Empirical Study at: PT. Bringin Karya Sejahtera from 2012-2016)
    MICOSS
    EAI
    DOI: 10.4108/eai.28-9-2020.2307513
Endang Afritiani1,*, Bambang Mulyana1
  • 1: Universitas Mercu Buana, Jakarta, Indonesia
*Contact email: endang.afritiani@gmail.com

Abstract

Companies that have efficient working capital management can improve the company's ability to manage current assets and current liabilities better. When a company has high production capability, the company can provide sufficient funds and capital. With good management of working capital management, it is certainly expected that the company can produce good profitability so as to produce attractive financial portfolios in the eyes of investors, with the creation of a good image in the financial portfolio it will be easy for companies to obtain sources of funds obtained including third party funds with competitive interest. Secondary data obtained from financial data of PT. Bringin Karya Sejahtera from 2012 - 2016 is used as a research sample, various sources such as journals, books and other related publications. The research method of multiple regression analysis and panel funding analysis. The results showed simultaneously or partially Working Capital Management (Current Ratio, Debt to Assets Ratio, Receivable Turn Over and Working Capital Turnover) significantly influence Profitability (Return on Assets) and Loan Interest Rates, with R2 in the Analysis Panel showing that the influence of Management Working Capital through better profitability. Management of PT. Bringin Karya Sejahtera should pay attention to working capital management to increase profitability in order to get a good loan interest.