STRATEGI KEPUTUSAN MODAL KERJA UNTUK OPTIMALISASI PROFITABILITAS PERUSAHAAN

Abstract

Working capital decisions play a critical role in a company's profitability, making them a crucial aspect of financial management. Effective working capital management not only ensures smooth company operations but also contributes to improving asset utilization efficiency and maximizing company value. This study reviews fifteen journals published in the past ten years to analyze optimal working capital decision strategies for improving company profitability. The study results indicate that efficient working capital management, including cash conversion cycle control, inventory turnover optimization, accounts receivable collection period management, and payables deferral strategies, have a significant impact on company profitability. A shorter cash conversion cycle allows companies to more quickly convert working capital investments into revenue, increasing liquidity and reducing the need for external financing. Optimizing inventory turnover is also a key factor, as well-managed inventory can reduce holding costs and the risk of obsolescence. Furthermore, strict management of accounts receivable collection periods can accelerate cash inflows, while appropriate payables repayment strategies can optimize trade credit utilization and reduce finance costs. Furthermore, a well-structured working capital decision strategy helps minimize liquidity risk and improve operational efficiency. Companies that maintain an optimal balance between working capital and short-term liabilities tend to have higher profitability than companies experiencing either insufficient or excess working capital. This is because insufficient working capital can lead to delays in meeting operational obligations, while excessive working capital can reduce asset utilization efficiency and lower returns on investment. This study emphasizes the importance of balance in working capital management to ensure sustainable business growth and long-term financial stability.