PROPOSED ACCOUNT RECEIVABLE MANAGEMENT ON STATE- OWNED COMPANY (CASE STUDY: PT XYZ)
The account receivable management, including average collection period, average payment period, inventory turnover and cash conversion cycle, plays a big role in the company profitability since it can increase profit without losing customers. PT XYZ (Persero) needs to enhance its financial aspect. f...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/72644 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The account receivable management, including average collection period, average payment period, inventory turnover and cash conversion cycle, plays a big role in the company profitability since it can increase profit without losing customers. PT XYZ (Persero) needs to enhance its financial aspect. from the financial reports for the previous five years (2017–2021), PT XYZ experienced a slowdown in the growth of its business with a cash conversion cycle having a positive value. So the objective of this study is to reduce the average collection period with certain policies and mitigate what risk arises. Data collected is from secondary data that is available in the financial statement that is disclosed on the PT XYZ website. The credit policy used in this study is initiating cash discount and credit relaxation followed by risk management. The credit policy that is suitable for PT XYZ is a cash discount. This alternate solution increases company profit, generating IDR 122,326,249,801. Followed by 13 risk registers but only 10 risks are urgent to mitigate and have a contingency; the other 3 risks still can be tolerated and ignored. |
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