WORKING CAPITAL MANAGEMENT OF PT. MUSTIKA RATU TBK (MRAT): A RESPONSE TO THE COVID-19 PANDEMIC IMPACT

• Main Author: Ariana Dewi, Nadya
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/63705
• Institution: Institut Teknologi Bandung

PT. Mustika Ratu Tbk is a well-known traditional modern cosmetics and herbal medicine company with an excellent reputation in the health care and beauty industry in Indonesia. Mustika Ratu on pandemic conditions focuses on developing health and hygiene products to keep contributing positively to the industry. The main problem with Mustika Ratu during this pandemic is that it has a high Cash Conversion Cycle with an increasing trend that affects the profitability of the company. The increase in the cash conversion cycle is due to the high level of inventory and receivables that impact the Collection Period and the Average Age of The Company's Inventory. In this research, Mustika Ratu requires effective and efficient management of working capital in supporting the company's operational performance and profitability also decreasing the value of the cash conversion cycle. Analysis of the company's financial performance in this research is to predict the company's performance in the next five years. Management of receivables to Mustika Ratu in this study is by tightening the credit standards to reduce the billing time of receivables and decrease the average collection period. Lowering the number of inventory days in this study applies inventory management using the optimal value of inventory level. The results of the research analysis showed that lowering the receivable period and inventory days can decrease the value of the Cash Conversion Cycle.