WORKING CAPITAL NEEDS ASSESSMENT DUE TO BUSINESS SEASONALITY IN THE LOGISTICS COMPANY
The development of the company's business is generally followed by an increase in the company's revenue. However, to achieve revenue, sales are required which require capital costs such as the cost of goods sold, salary expenses, and other expenses. The cost of capital is generally the...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/70739 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The development of the company's business is generally followed by an increase in
the company's revenue. However, to achieve revenue, sales are required which
require capital costs such as the cost of goods sold, salary expenses, and other
expenses. The cost of capital is generally the cost that the company first incurs
compared to revenue. The impact of capital costs that are issued first, sometimes
companies do not have sufficient capital to fund their operational activities due to
limited capital.
PT KCE is an international forwarding company in the export and import logistics
industry, this company is still small and medium and has limited capital. In the last
5 years, the company has continued to experience an increase in sales from year to
year. But due to limited capital, the company cannot fulfil all requests and projects
from customers due to the high cost of goods sold. In addition, in this industry, the
profits generated by companies are tight, so companies tend to avoid bank loans in
funding their operational activities.
In the operational activities of this company, there is also a difference in the timing
of receiving money from customers, which tends to be longer than the difference in
payment times. The impact is that even though the company appears to have high
liquidity, the company still cannot accept all customer requests because the
company's assets are receivables. This is also exacerbated because the logistics
business in Indonesia has seasonal sales that depend on global economic activity.
In a high sales season, the company tends to have no cash, while in a low sales
season, the company has a lot of cash but is not productive. However, if the
company decided to invest the money for expansion currently the company did not
have any calculation of cash required to take all potential revenue in the future. |
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