International Journal of Social Science, Educational, Economics, Agriculture Research, and Technology (IJSET)
Vol. 3 No. 5 (2024): APRIL

THE EFFECT OF PROFITABILITY ON WORKING CAPITAL MANAGEMENT AND COMPANY CAPITAL STRUCTURE

Elwisam (Unknown)
Melati (Unknown)
Rahayu Lestari (Unknown)
Kumba Digdowiseiso (Unknown)
Rosyidah Muhammad (Unknown)



Article Info

Publish Date
02 Mar 2024

Abstract

The significance lies in comprehending the correlation between profitability, working capital management, and capital structure within the framework of corporate financial decision-making. This study aims to elucidate the influence of profitability on the efficiency of working capital management and the policy regarding capital structure. The employed approach is Systematic Literature Review (SLR), which involves the identification, selection, and evaluation of pertinent scientific literature. The findings indicate that the profitability level has an impact on a company's capacity to handle working capital, affects the cash cycle, and can elucidate decisions regarding capital structure policy. While high profitability enables increased access to external financial resources, low profitability can present difficulties in managing working capital. The discussion encompasses the practical ramifications of these findings, such as implementing astute financial strategies to enhance profitability and optimize the management of working capital. Ultimately, this study offers a comprehensive perspective on the correlation among profitability, working capital management, and capital structure. Acquiring this knowledge is crucial for companies to make informed financial decisions and guarantee long-term viability and steady expansion in a constantly changing business landscape.

Copyrights © 2024






Journal Info

Abbrev

ijset

Publisher

Subject

Agriculture, Biological Sciences & Forestry Humanities Computer Science & IT Economics, Econometrics & Finance Education

Description

International Journal of Social Science, Educational, Economics, Agriculture Research, and Technology (IJSET) is an international journal that publishes popular articles in the fields of Social Science, Education, Economics, Agricultural Research, and Technology. IJSET is published every month in ...