<![CDATA[The research was conducted in response to the financial challenges faced by the textile sector, especially PT Sri Rejeki Isman Tbk (Sritex), whose profitability declined significantly as operating expenses continued to increase. The study is grounded in Cost Efficiency Theory and Capital Budgeting Theory to evaluate expenditure efficiency and the appropriateness of investment allocation. An associative quantitative research approach was employed. Data were collected through documentation of secondary data consisting of 40 quarterly financial statements from the company covering the period 2014–2023, officially obtained from the Indonesia Stock Exchange. The statistical test results demonstrate that both operational cost budgets and investment budgets have a positive and significant effect on profitability (ROA), both partially and simultaneously. The findings further indicate that the investment budget is the most dominant predictor influencing the company's financial performance. In conclusion, the synergy between short-term operational cost control and effective capital expenditure management is essential for large-scale manufacturing companies to maintain competitiveness and profitability.]]>
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