pdf Evaluation of Accounts Receivable Management Based on Key Performance Indicators in Strengthening Liquidity
Keywords:
Key Performance Indicators; , Days Sales Outstanding; , Collection Period; , Customer Outstanding; , Accounts Receivable ManagementAbstract
Research Objectives - This study aims to analyze the effectiveness of accounts receivable management based on Key Performance Indicators (KPI) and its implications for financial performance in the port service sector.
Method - This study employs a quantitative approach with a descriptive-comparative design. The analysis is conducted through the calculation of Days Sales Outstanding (DSO), Receivable Turnover, Collection Period, and aging analysis, which are compared with the company’s performance standards.
Research Findings - The results indicate a decrease in DSO from 60 days to 57 days and an increase in receivable turnover from 6.10 to 6.42 times. The proportion of current receivables increased from 82 percent to 86 percent, reflecting effective monitoring and internal control. The Collection Period falls within the highly efficient category, although receivables aged over 120 days remain and pose potential credit risk.
Theory and Practical Implications - Theoretically, integrating outcome and process indicators strengthens KPI-based receivables performance evaluation. Practically, companies should maintain effective collection practices and enhance customer credit risk monitoring
Novelty - The novelty of this study lies in the integration of three KPI indicators in evaluating accounts receivable management within the port service industry.
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Copyright (c) 2026 Herawati Dahlan, Qadhimul Khaeramain, Andi Mattingaragau Tenrigau (Author)
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