THE EFFECT OF INVENTORY TURNOVER AND TOTAL ASSET TURNOVER ON OPERATIONAL EFFICIENCY OF PT PANCA BUDI IDAMAN TBK 2020-2024

Abstract

This study aims to analyze the effect of Inventory Turnover (ITO) and Total Asset Turnover (TATO) on the operational efficiency of PT Panca Budi Idaman Tbk for the period 2020–2024. Operational efficiency is measured using Return on Investment (ROI) as an indicator of the company's ability to manage resources optimally. The approach used is quantitative with descriptive and verificative methods based on secondary data from annual financial reports published on the Indonesia Stock Exchange (IDX). The results show that the ITO ratio fluctuates with a downward trend, while TATO increases throughout the observation period. The increase in TATO has a positive effect on ROI, indicating an increase in asset utilization efficiency, while the decline in ITO indicates the need for improvements in inventory
management. This study supports the Efficiency Theory and Resource-Based View
(RBV), which emphasize the importance of optimizing internal assets to improve
company efficiency and profitability. In practical terms, the results of this study
recommend that PT Panca Budi Idaman Tbk strengthen its technology-based asset
and inventory management strategy in order to maintain sustainable operational
efficiency. This study is limited to one company over a five-year observation period,
so future studies should include more manufacturing companies in order to produce
more comprehensive and representative results.