INFLUENCE OF OPERATING CASH FLOW AND LONG-TERM LIABILITIES ON PT WASKITA KARYA TBK’S

Abstract

This study aims to analyze the effect of Operating Cash Flow (OCF) and Long-Term
Liabilities (LTL) on Cash and Cash Equivalents at Year-End (CCEYE) at PT Waskita
Karya Tbk for the 2015–2024 period. The background of this research is based on
significant fluctuations in the financial performance of this state-owned construction
company, where the management of cash flow and capital structure plays a crucial
role in maintaining liquidity. The method used is a quantitative approach with a
causal-associative design, utilizing secondary time-series data from annual financial
reports over ten years. Data analysis was carried out using multiple linear regression
after conducting classical assumption tests, preceded by Pearson correlation analysis.
The correlation test results show a very weak relationship between OCF and CCEYE
(r = 0.047) and a weak negative relationship between LTL and CCEYE (r = −0.189).
The partial test results (t-test) indicate that individually, Operating Cash Flow (Sig. =
0.694) and Long-Term Liabilities (Sig. = 0.539) have no significant effect on Cash and
Cash Equivalents at Year-End. Similarly, the simultaneous test results (F-test) show
that OCF and LTL together do not have a significant effect on CCEYE (Sig. = 0.810).
This indicates that variations in CCEYE during the period are largely explained by
other factors beyond the two independent variables studied, such as financing or
investing cash flows.