Analysis of Cash Management of PT XYZ in Karawang
- DOI
- 10.2991/aebmr.k.200415.013How to use a DOI?
- Keywords
- Working Capital Management, cash management, cash requirement
- Abstract
PT XYZ is a manufacture of mechanical steel tubes in Karawang, West Java, Indonesia. Due to its Working Capital Management (WCM) on 2014, PT XYZ tried to rearrange the WCM and resulted a well-managed WCM. However, in 2016-2017, the liquidity ratios of PT XYZ were far above the average companies in the same industry. Indicates PT XYZ hadn’t used its current assets or cash efficiently. The researcher decided to use approach method to solve the problem since there’s been no study that discusses the required cash for company operations. This method consists of benchmarking, financial ratio analysis, and funding strategy analysis to know the cash required by PT XYZ and the impact of cash management implementation towards its performance. The total cost of each strategy also proposed to know the most efficient management funding strategy that could be applied by PT XYZ. From the analysis, we found the monthly cash requirement of PT XYZ and the cash management implementation will give an increase to both return on assets and total assets turnover, but a decrease to liquidity ratio. Meanwhile, the funding strategy that’s more compatible for PT XYZ is aggressive strategy, because it’s less costly compared to the conservative strategy.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Nur Afifah S Fithriyyah AU - Mandra Lazuardi Kitri PY - 2020 DA - 2020/04/17 TI - Analysis of Cash Management of PT XYZ in Karawang BT - Proceedings of the 1st Annual Management, Business and Economic Conference (AMBEC 2019) PB - Atlantis Press SP - 64 EP - 68 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200415.013 DO - 10.2991/aebmr.k.200415.013 ID - Fithriyyah2020 ER -