FINANCIAL RESILIENCE AND GREEN SUPPLY CHAIN PRACTICES: ENHANCING SUSTAINABILITY AND ROA IN INDONESIA’S TEXTILE INDUSTRY

Abstract

This research analyzes how operational and financial ratios, in conjunction with GSC practices, influence the financial aspects of the textile industry in Indonesia, focusing on the Return on Assets (ROA) as indicators of performance. This research examines the relationship between financial practices and sustainable development indicators on the firm’s outcome. This analysis utilizes panel data on 18 companies in the Indonesia Stock Exchange between 2019 and 2024 using the Fixed Effect Model and Moderated Regression. In relation to these findings, the Interest Coverage Ratio and Inventory Turnover drove the Return on Assets (ROA) the most, emphasizing on debt control and the proper handling of stock level discipline. The Current Ratio, Working Capital Ratio, Production Costs and, Raw Material Fluctuations were shown to be weak or insignificant. GSC practices do not directly increase the profitability of the firm, however, they enhance the operational performance and profitability correlation. In conclusion, sustainable financing in Indonesia’s textile industry rests on proper financing, integrated with GSC practices as the financial touchstone.