WORKING CAPITAL NEEDS ASSESSMENT DUE TO BUSINESS SEASONALITY IN THE LOGISTICS COMPANY

• Main Author: Widyanata, Michael
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/70739
• Institution: Institut Teknologi Bandung

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.