Analysis of Cash Rolling In Food and Beverage Sectors Seen From Ability to Make Profit and Pay Obligations: A Geographical Comparison

Abstract

This study examines how the company's ability to implement its working capital policy in different
geographical locations to control its ability to pay its obligations and generate profits in companies that
are members of the food and beverage sector. The movement between variables in all the 8
companies operating at different locations that occur is one of the phenomena that occur in the
sector. The selected sample is as many as 8 companies using descriptive verification method. The results
show that only the current ratio has an effect on working capital and that effect is slightly different in all
the studied companies due to the geographical factor. These findings had a significant association with
the firm performance. Therefore, these findings could add a body of literature in the extant literature
that could become a new area of research in future. In addition, the findings of the study could also
provide help to the policy makers and regulators to know about the importance of working capital to
increase their firm performance.