Working Capital Management Efficiency: (Study on The Transportation Sector)

The main objective of Working Capital Management is to ensure the maintenance of a satisfactory level of working capital in a way that will prevent excessive or inadequate availability of working capital. The main goal of working capital management is to teach and keep an optimized balance between each component of working capital. This preliminary study was made with an attempt to analyze the efficiency of working capital management Study on the transportation sector. The secondary data was derived from Indonesia Stock Exchange. Database of 31 transportation companies are selected from the IDX website for five years period from 2014 - 2018. In analyzing the efficiency of working capital management three indexes was used in this current study namely, performance index of working capital management (PIWCM), utilization index of working capital management (UIWCM), and efficiency index of working capital management (EIWCM). The results reveal that the working capital management on transportation sector company was less efficient in managing their working capital during this study period