Problem Formulation The Influence of Working Capital Management and Liquidity Towards Profitability (Case Study: Automotive and Components Industry Listed in Indonesia Stock Exchange 2008-2012)
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sourced from long-term debt and equity capital. The benefits of sufficient working capital is Djarwanto, 2004 : 87 :
a. Protect the company from the bad consequences where the value of current assets decreased. For example the financial loss because the debtor does
not pay out, and the value of inventory decreased because the price declined.
b. Enabling the company to pay short-term liabilities on time. c. Enabling enterprises to be able to buy goods with cash so that they can
reap the benefits in the form of rebates. d. Ensured the company to has credit standing so can solve unforeseeable.
e. Enabling to have sufficient supplies to serve the demand of consumers. f. Enabling the company to give credit requirement which is profitable for
customers. g. Enabling the company to operate more efficiently, because there is no
difficulty in obtaining raw materials, services and supplies needed. h. Enabling the company to survive in recession and depression periods.