Jurnal Administrasi Bisnis Terapan (JABT)


As one of the leading industries in the Indonesian economy and having differenct characteristics from other industries, palm oil industry is interesting to study, especially in terms of working capital management. This study aims to analyze working capital performance of PT Sinar Mas Agro Resources and Technology Tbk. (PT SMART Tbk.) which has the highest revenue among other palm oil companies. This analysis is then related to the profitability level obtained. Using data from company annual reports, we find that PT SMART Tbk. always maintain positive working capital level during 2015-2019 and able to generate high revenue. However, this company was unable to obtain high profitability in line with its revenue. Consequently, this company needs to manage its working capital more efficiently to provide high profitability along with increasing sahreholders’ wealth.