Analyzing the Impact of Credit Sales Policy on Profitability at PT. Riau Graindo

Abstract

This study analyzes the impact of credit sales policy on the profitability of PT. Riau Graindo, with a focus on the mediating role of liquidity. Utilizing financial data from 2022 to 2024, the research examines fluctuations in credit sales, accounts receivable, liquidity ratios, and Return on Assets (ROA). The results indicate that while credit sales contributed to an increase in revenue, they also led to a rise in uncollected receivables, causing liquidity constraints and stagnant profitability. The company's current ratio remained above the safe threshold, but profitability showed only marginal improvement. The study concludes that credit sales policy significantly affects profitability, primarily through its effect on liquidity, and recommends that the company adopt a more dynamic and risk-sensitive credit management system to ensure sustainable financial performance.