The tight competition in bottled water industry lead the writer to concern
more about the profitability of the companies. Most companies usually do not
look at working capital management as a factor in profitability. The writer
believes that working capital management is one of the important factors that
affect the company?s profitability though it might create a dilemma for the
company whether it will increase the profitability or increase the risk of
insolvency. The writer examined the impact of working capital management
towards the company?s profitability to help determine the most suitable working
capital to be invested. The key variables used in this analysis are average age of
inventory, average collection period, average payment period, and the cash
conversion cycle. Through the analysis by using the multiple regressions, a
significant correlation has been found by using the ROA as the dependent variable
and the average collection period, average payment period, and the cash
conversion cycle as the independent variables. The average age of inventory was
not used because it is not relevant enough because there was multicollinearity
among the variables.

Creator(s)

• (34403033) FENNY WAHYUNI

Contributor(s)

• Ricky Wang → Advisor 1
• Filicia Chandra → Examination Committee 1

Publisher

Universitas Kristen Petra; 2007

Language

English

Category

s1 – Undergraduate Thesis

Sub Category

Skripsi/Undergraduate Thesis

Source

Final Assignment Report No. 00010112/MAN/2007; Fenny Wahyuni (34403033)

Subject(s)

• WORKING CAPITAL

File(s)

• jiunkpe-ns-s1-2007-34403033-7309-bottled_water-cover.pdf
• jiunkpe-ns-s1-2007-34403033-7309-bottled_water-abstract_toc.pdf