Analysis of Working Capital Turnover, Company Size, and Profitability at PT. Maxis Paragon, Gunungsitoli City, Years 2019-2022
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Abstract
The study aims to analyze working capital turnover, company size, and profitability at PT Maxis Paragon in Gunungsitoli City from 2019 to 2022. It's a descriptive study using secondary data, focusing on the company's financial reports. The findings indicate a healthy working capital turnover, exceeding the standard of >1 time. PT Maxis Paragon falls into the medium-sized enterprise category, with net worth ranging from Rp. 500 million to Rp. 10 billion and annual sales from Rp. 2.5 billion to Rp. 50 billion. However, profitability, measured by Return on Assets (ROA), shows substandard performance (<5.98%). Return on Equity (ROE) was below standard (<8.32%) for 2019-2020 but improved above standard for 2021-2022. Net Profit Margin (NPM) also indicates below-standard performance (<3.92%). These results suggest areas for improvement in profitability despite healthy working capital turnover and medium-sized enterprise status.
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How to Cite
Hulu, Y. S., Buulolo, N. A., Batee, M. M., & Harefa, I. (2024). Analysis of Working Capital Turnover, Company Size, and Profitability at PT. Maxis Paragon, Gunungsitoli City, Years 2019-2022. ProBisnis : Jurnal Manajemen, 15(2), 269–273. Retrieved from https://ejournal.joninstitute.org/index.php/ProBisnis/article/view/542
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Fauzi, F., Antoni, D., & Suwarni, E. (2020). Women entrepreneurship in the developing country: The effects of financial and digital literacy on SMEs’ growth. Journal of Governance and Regulation, 9(4), 106–115. https://doi.org/10.22495/JGRV9I4ART9
Frimpong, S. E., Agyapong, G., & Agyapong, D. (2022). Financial literacy, access to digital finance and performance of SMEs: Evidence From Central region of Ghana. Cogent Economics and Finance, 10(1). https://doi.org/10.1080/23322039.2022.2121356
Hamdana, Murwani, F. D., Sudarmiatin, & Hermawan, A. (2022). The effects of financial and technology literacy on the sustainability of Indonesian SMEs: Mediating role of supply chain practice. Uncertain Supply Chain Management, 10(4), 1449–1456. https://doi.org/10.5267/j.uscm.2022.6.011
Msomi, T. S., & Nzama, S. (2022). Financial literacy and SME loan repayments in South Africa during the COVID-19 era. Investment Management and Financial Innovations, 19(4), 113–121. https://doi.org/10.21511/imfi.19(4).2022.09
Ngek, N. B. (2016). Performance implications of financial capital availability on the financial literacy - Performance nexus in South Africa. Investment Management and Financial Innovations, 13(2), 354–362. https://doi.org/10.21511/imfi.13(2-2).2016.10
Nkundabanyanga, S. K., Kasozi, D., Nalukenge, I., & Tauringana, V. (2014). Lending terms, financial literacy and formal credit accessibility. International Journal of Social Economics, 41(5), 342–361. https://doi.org/10.1108/IJSE-03-2013-0075
Nugraha, D. P., Setiawan, B., Nathan, R. J., & Fekete-Farkas, M. (2022). Fintech Adoption Drivers for Innovation for SMEs in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 208. https://doi.org/10.3390/joitmc8040208
Owusu, J., Ismail, M. Bin, Osman, M. H. B. M., & Kuan, G. (2019). Financial literacy as a moderator linking financial resource availability and SME growth in Ghana. Investment Management and Financial Innovations, 16(1), 154–166. https://doi.org/10.21511/imfi.16(1).2019.12
Satria, C., Maulina, E., Purnomo, M., & Suryanto, T. (2023). Performance Improvement in Small and Medium Enterprises; Financial Literacy and Business Experience: A case of Palembang City. Quality - Access to Success, 24(193), 268–277. https://doi.org/10.47750/QAS/24.193.30
Shah, S. Z. A., Anwar, M., & Hussain, C. M. (2021). Top managers’ attributes, innovation, and the participation in China–Pakistan Economic Corridor: A study of energy sector small and medium-sized enterprises. Managerial and Decision Economics, 42(2), 385–406. https://doi.org/10.1002/mde.3242
Sulistianingsih, H., & Santi, F. (2023). Does SME’s financing decisions follow pecking order pattern? The role of financial literacy, risk preference, and home bias in SME financing decisions. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2023.2174477
Thomas, N. M. (2023). Modeling key enablers influencing FinTechs offering SME credit services: A multi-stakeholder perspective. Electronic Markets, 33(1). https://doi.org/10.1007/s12525-023-00627-6
Toth, R., & Kasa, R. (2022). SMEs before and during COVID-19. Risks.