THE EFFECT OF WORKING CAPITAL MANAGEMENT AND SALES ON NET INCOME OF PT MAYORA INDAH TBK

Abstract

This study aims to examine the effect of working capital and sales on the net profit of PT Mayora Indah Tbk during the 2020–2024 period. The research employs a quantitative approach using secondary data derived from the company’s annual financial reports published by the Indonesia Stock Exchange (IDX). Data collection techniques include documentation and literature review, while the analysis is conducted through multiple linear regression using SPSS version 27. The findings reveal that both working capital and sales do not have a significant partial effect on net profit, as indicated by the t-test results where significance values exceed 0.05. Similarly, the F-test results show that the two variables jointly have no significant simultaneous effect on net profit. However, the coefficient of determination (R²) indicates that 86.7% of variations in net profit are explained by working capital and sales, with the remaining 13.3% influenced by other factors not included in the model. These results suggest that while working capital and sales are essential financial indicators, their short-term fluctuations may not directly determine profitability. The study contributes to the academic literature on financial performance by providing post-pandemic empirical evidence from an Indonesian manufacturing company. Practically, the findings highlight the importance for management to integrate broader financial and operational strategies to sustain profitability in a competitive and uncertain market environment.