INCREASING PROFITABILITY OF PT ADHI KARYA THROUGH WORKING CAPITAL MANAGEMENT IN RESPONSE OF INDONESIA'S ECONOMIC GROWTH

• Main Author: Alfaricha, Tita
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/73190
• Institution: Institut Teknologi Bandung

Indonesia has been experiencing significant infrastructure development under the current president's supremacy, Joko Widodo. The involvement of the construction companies who have a crucial role on how the process takes place needs to be taken into account. PT Adhi Karya, ADHI, ought to grab this opportunity to acquire more contracts and escalate the company’s value to attract more investors in the future. One factor that will be taken as an investment consideration is how efficiently the company runs its operational activity which can be indicated from NWC or Net Working Capital. This research is conducted as action research with a qualitative approach. Data will be obtained by literature review and interview. By thorough research it is found that the operational activity of the company has been declining as so has the operational activity efficiency. The company also constantly claims to improve their collecting period from year to year to improve its competitiveness. The purpose of this study is to assemble working capital management of its account receivable. There are 11 scenarios of the cash planning that are divided into 3 methods, which are Change on Credit Period, Cash Discount, and Combination. The best alternative will be chosen by its feasibility and the amount of the profit made by applying the determined method. The best alternatives are applying a combination method, 10/30 net 73 which will increase sales up to 11%.