WORKING CAPITAL MANAGEMENT OF PT SMK

• Main Author: Kevin Achsanta, Muhammad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/63265
• Institution: Institut Teknologi Bandung

PT SMK is one of the companies engaged in the hotel industry. The company has three hotels that are strategically located in Jakarta and Bali. This company has problems in financial management, this is shown by the current ratio and cash ratio which has decreased since 2019. This indicates that the company has a risk of not being able to fulfill its obligations smoothly and is not optimal in managing working capital. Therefore, the purpose of this study is to provide a strategy for managing optimal working capital and also a strategy for financing working capital for companies. This research was conducted using several methods in several stages. The first stage is external analysis (PESTLE and Five Forces) and internal analysis (SWOT and financial ratios) of the company. The results of the analysis show that the company is not optimal in managing working capital, therefore the next step is financial planning using three scenarios (pessimistic, most-likely, and optimistic). Furthermore, working capital management is carried out by looking at three components, namely inventory, accounts receivable, and accounts payable. To be able to implement optimal working capital management, PT SMK needs to reduce the value of the Cash Conversion Cycle (CCC), by implementing inventory management (Economic Order Quantity, Just in time, and First in First out). Then manage accounts receivable so that they are collected faster by selecting credit standards, changing credit periods, and cash discounts. And finally, the company needs to manage debt to be able to be paid longer.