THE IMPACT OF WORKING CAPITAL MANAGEMENT ON NET PROFIT LEVEL AT PT GARUDAFOOD PUTRA PUTRI JAYA TBK IN THE 2020-2024 PERIOD

Abstract

This study aims to analyze the effect of working capital on net profit at PT Garudafood Putra Putri Jaya Tbk for the 2020–2024 period. Working capital is a crucial factor in maintaining liquidity and the sustainability of a company's operations. Efficient working capital management, which includes cash, accounts receivable, inventory, and accounts payable, can impact a company's profitability. The data used are secondary data obtained from the annual financial reports of PT Garudafood Putra Putri Jaya Tbk published on the Indonesia Stock Exchange (IDX) and the company's official website. The analytical method used is simple linear regression, with net profit as the dependent variable and net working capital as the independent variable.

The results show that working capital has a positive and significant effect on net profit. Increasing efficiency in working capital turnover (for example, accelerating accounts receivable turnover and optimizing inventory) has been shown to increase profitability. Conversely, if working capital is not managed properly, the company's net profit tends to decline due to increased operational costs and financial burdens. This study emphasizes the importance of effective working capital management to maintain a company's financial performance amidst economic dynamics and fluctuating raw material prices.