THE IMPACT OF WORKING CAPITAL ON NET PROFIT OF PT. UNILEVER INDONESIA TBK FOR THE PERIOD 2020-2024

Abstract

This study aims to analyze the impact of working capital on the net profit of PT
Unilever Indonesia Tbk during the 2020–2024 period. The data used were obtained
from the company's financial statements accessed through the Indonesia Stock
Exchange. The research employed a quantitative approach with an explanatory
research method by examining the relationship between working capital and net
profit. The findings indicate that working capital has a very strong correlation (r =
0.899) with net profit, with a coefficient of determination of 80.82%. However, the
regression analysis reveals a negative relationship between working capital and net
profit, with a coefficient of -1.558. This indicates that excessive increases in working
capital reduce net profit efficiency. Although the company's revenue remained
relatively stable, net profit sharply declined from IDR 7.16 trillion in 2020 to IDR 3.37
trillion in 2024, a drop of approximately 53% over five years. These results
demonstrate that inefficient working capital management had a significant negative
impact on PT Unilever Indonesia Tbk's profitability, as excessive investment in
current assets reduced operational efficiency and profitability. The study concludes
that optimal working capital management is crucial for maintaining profitability,
especially during periods of economic uncertainty such as the COVID-19 pandemic
and subsequent recovery phases.