The Impact of Working Capital Management on Financial Performance, Evidence from Automotive & Components Industry

This study aims to examine and analyze the impact of Working Capital Management by measuring Days Inventory Oustanding (DIO), Sales Outstanding (DSO), Payable (DPO) on Return Assets (ROA) in automotive component sub-sector firms listed IDX from 2011 2021. The sampling technique employed was a purposive sample 11 businesses with 121 observations for 2011-2021 IDX-listed sub-sectors. Panel data regression using Common Effect Model is method analysis used. results this reveal that DIO DPO have significant negative effect ROA, whereas DSO has positive effect. It recommended that, while formulating optimal capital budgeting practices, consider Management. paper's findings may help firm managers optimize their working management practices. study's identification as substantial influence profitability can interest policymakers.