BAHASA INGGRIS BISNIS 2

 ANALYSIS OF FINANCIAL STATEMENTS at PT MUSTIKA RATU Tbk 

                                          Name              : Gita Yuna Avisha

                                          Class               : 4EA01

                                          NPM               : 14209282

FAKULTAS EKONOMI

UNIVERSITAS GUNADARMA

JAKARTA

2012


  1. 1.      Introduction

 

1.1  Background

The financial report is a medium of information used by the company in question to report circumstances and financial position to the parties concerned, particularly for creditors, investors and the management of the company itself.  The management should be able to use a device, analyze the financial statements presented by the company concerned, to know the state and development of the company.

The use of ratio analysis is the best choice because of the use of ratio analysis will help the company in terms of:

1) provide a basis for predicting the company’s prospects in the future,

2) provide clues or symptoms that arise from the information presented,

3) make it easier to interpret financial statements.

Use ratio analysis to interpret and analyze financial statements will use certain criteria called ratio. The ratio is a form of mathematical formula that shows the relationship between specific figures. In financial ratio analysis which analyzed the figures derived from financial data. In order for the ratio to have meaning, then the ratio should be calculated on the variables that can provide meaning. So the ratio analysis is able to explain the relationship between the variables in question so it can be used to assess the financial condition and could be used as a basis of comparison from time to time.

For it can be done by looking at a company’s financial condition is healthy or not by looking at the financial statements of each period, so that the adverse factors and profitable companies can be viewed and searched completion.

Results of financial statement analysis can be used as information for interested parties such as managers, business owners, workers, investors, creditors. Managers are required to be able to see the opportunities and challenges in the future. The above is realized with a very careful planning to achieve company goals.

One measure used to assess the success of the company’s management is the ability of the company to meet all its obligations. Obligations may include short-term debt and long-term debt, both in state run companies are still in a state or company liquidated. For the short-term creditors, in serving customers or subscriptions are influenced by liquidity analysis subscription or customer concerned, while the company’s ability to pay all its debts can be seen in the solvency ratio, this will affect the long-term creditors, including investors, prospective owners stock, as well as other interested parties in investing their funds.

1.2  Problem

How financial conditions in the year 2007 – 2011 terms of the Liquidity, Solvency and Profitability PT Mustika Ratu Tbk?

1.3  Purpose

Find a picture of the financial condition of PT Mustika Ratu in 2007 – 2011 terms of the Liquidity, Solvency and Profitability.

1.4  Advantage

1. Academic benefits

In order to know and understand how authors of the Liquidity ratios, Solavabilitas, and Profitability to determine the financial performance of PT Mustika Ratu, Tbk

2. Practical benefits

In order for the analysis of financial performance under study can be a tool for corporate financial planning firms, especially in solving problems and making decisions.

1.5  Approach

financial measurement of PT Mustika Ratu Tbk using ratio analysis, while the ratio used is the ratio Liquidity, Solvency and Profitability in the period 2007 – 2011

    II.                        Discussion

Table 1

Summary results of the calculation

(in dollars)

Ratio 2007 2008 2009 2010  2011
Current Ratio 7,680 6,311 7,179 7,613 6,271
Cash Ratio 2,87 2,26 2,208 2,120 1,224
Quick Ratio 6,09 3,778 4,627 4,715 5,064
Net Working Capital To Total Asset Ratio 0,649 0,651 0,658 0,654 0,649
Total Debt To Enquity Ratio 0,681 0,956 0,919 0,913 1,197
Total Debt To Total Assets Ratio 0,115 0,144 0,135 0,126 0,152
Enquity To Total Assets Ratio 0,169 0,151 0,146 0,138 0,127
Rentabilitas Modal Sendiri 0,208 0,417 0,393 0,456 0,521
Rentabilitas Ekonomi 0,167 0,23 0,377 0,336 0,377

 

2.1  Analisis Ratio Likuiditas

Liquidity indicates the level of the company’s ability to pay short-term debts owned.

a)      Current Ratio

Current ratio is the ratio between current assets and current liabilities. The current ratio is less than 200% is not good, but the size is not an absolute guideline.

235.829.499.436

2007    =                                  x 100 %

30.706.064.855

= 7,680 = 768 %

In 2007 the current ratio of 7.68 PT Mustika Ratu means every Rp 1 Rp good debt secured by current assets 7.68. In 2008 the current ratio of 6.311 PT Mustika Ratu means that every Rp 1 Rp good debt secured by current assets 6.311. In 2009 the current ratio of 7.179 PT Mustika Ratu does Rp 1 Rp good debt secured by current assets 7.179. In 2010 the current ratio of 7.613 PT Mustika Ratu means that every Rp 1 good debt secured by Rp 7.613. In 2011 the current ratio of 6.271 PT Mustika Ratu means every Rp 1 Rp good debt secured by current assets 6.271. Of the calculation for 5 years (from 2007 s / d 2011), the current ratio has fluctuated PT Mustika Ratu. The decrease from 2007 to 2008 was 136.9%. Increase from the year 2008 to the year 2009 amounted to 86.8%. Increase from the year 2009 to the year 2010 amounted to 43.4%. The decrease from 2010 to 2011 amounted to 134.2%. According to the theory described in chapter 2, if the current ratio is more than 200%, the company said liquid (Miswanto, Eko Widodo, 1998:83). The fifth year of the above, the results of the calculation are all greater than 200%, so the company said in a liquid state, which means the company is able to meet its short term obligations, even during the period of five years current ratio fluctuations. Although the level of current ratio should be considered illiquid but the company can reduce its debt so as not too much, and the payment obligations of a higher priority than the play or invest it.

b)      Cash Ratio

Cash Ratio, indicating the ability of the company to short-term debt with available cash and marketable securities that can be immediately cashed. There is no standard for cash liquidity ratio that judgment depends on management policy.

87.984.431.568

2007   =                                  x100 %

30.706.064.855

= 2,87 = 287 %

Cash value ratio in 2007 was 2.87 meaning that every Rp 1 rupiah good debt secured by cash amounting to Rp 2.87. 2008 of 2.26 means that every Rp 1 rupiah good debt secured by cash amounting to Rp 2.26. In 2009 Rp 1 good debt secured by cash amounting to Rp 2,208. In 2010 Rp 1 good debt secured by cash amounting to Rp 2,120. In 2011 Rp 1 good debt secured by cash amounting to Rp 1,224. There is no absolute standard but the assessment for cash ratio of the calculation, the authors can conclude generally cash ratio PT Mustika Ratu Tbk is considered good enough, because every good debt afford Rp 1 Rp 1 secured by cash.

c)      Quick Ratio

Quick ratio is less than 100% is considered poor liquidity. Usually the center of attention of the creditors was quick ratio level of the company concerned.

187.289.454.029

2007   =                                  x100 %

30.706.064.855

= 6,09 = 609 %

Quick ratio is sharper than the current ratio because it compares only highly liquid assets to current liabilities. 2007 quick ratio of 6.09 means that every Rp 1 Rp good debt secured by current assets 6.09 which can be cashed immediately. 2008 quick ratio of 3.778 means that every Rp 1 Rp good debt secured by current assets 3,778 can be cashed immediately. In 2009 Rp 1 Rp good debt secured by assets 4,627 can be cashed immediately. In 2010 Rp 1 Rp good debt secured by assets 4,715 can be cashed immediately. In 2011 Rp 1 Rp good debt secured by assets 5,064 can be cashed immediately. In general, the quick ratio is less than 100% is considered poor. According to the theory described in chapter 2 (Miswanto, Eko Widodo, 1998:83), if the quick ratio is more than 100%, the company said liquid. From three years to above, the results of the calculation are all greater than 100%, so the company said in a liquid state, which means the company is able to meet its short term obligations.

d)     Net Working Capital To Total Assets Ratio

Net working capital is a rough measure of potential cash resources of the company. This ratio indicates the liquidity of the company’s total assets and how the working capital position.

235.829.499.436 – 30.706.064.855

2007   =                                                                      x100 %

315.997.722.658

= 0,649 = 64,9 %

In 2007 amounted to 0,649 NWCTTAR means that every Rp 1 total assets that can turn into cash in the short term is equal to 0,649. In 2008 NWCTTAR of 0.651 means that every Rp 1 total assets that can turn into cash in the short term is equal to 0.651. In 2009 NWCTTAR of 0.658 means that every Rp 1 total assets that can turn into cash in the short term is equal to 0.658. In 2010 NWCTTAR of 0.654 means that every Rp 1 total assets that can turn into cash in the short term is equal to 0.654. In 2011 amounted to 0,649 NWCTTAR means that every Rp 1 total assets that can turn into cash in the short term is equal to 0,649. Increase from 2007 to 2008 by 0.2%, increase from the year 2008 to the year 2009 by 0.7%, while from 2009 to 2010 a decline of 0.4%. From 2010 to 2011 a decline of 0.5%.

2.2  Analisis Ratio Solvabilitas

Solvency is demonstrating the company’s ability to repay all its obligations.

a)      Total Debt to Enquity Ratio

This ratio compares the entire amount of the debt to equity capital in the form of shares. This ratio measures the extent to which the entire debt capital guarantee.

30.706.064.855 + 5.720.289.325

2007         =                                                          x100 %

53.500.000.000

= 0,681 = 68,1 %

2007 shows every Rp 1 capital to guarantee total debt amounted to 0.681. 2008 shows every Rp 1 capital to guarantee total debt amounted to 0.956. Then in 2009 every Rp 1 capital to guarantee total debt amounted to 0.919. In 2010 every Rp 1 capital to guarantee total debt amounted to 0.913. And in 2010 every Rp 1 capital to guarantee total debt amounted to 1,197. According to the theory described in chapter 2, if the assets are sufficient to or greater than the amount of debt means the company is said solvable (Soemarso (2005:389)). From three years to above, the calculation of all, the amount of capital is greater than the amount of debt, so the company said in a solvable state, which means the company’s assets or property sufficient to pay its debts.

b)      Total Debt to Total Assets Ratio

This ratio compares the total amount of debt to total assets owned by the company. In other words, how big the company’s assets that are financed by debt or some part of the funding requirements that have been used dibelanjai companies with foreign capital.

36.426.354.180

2007          =                                  x100 %

315.997.722.658

= 0,115 = 11,5 %

Year 2007 showed total assets of USD 1 each to guarantee total debt amounted to 0,115. Year 2008 showed total assets of USD 1 each to guarantee total debt amounted to 0,144. Then in 2009 the total assets of USD 1 each to guarantee total debt amounted to 0.135. In 2010 the total assets of USD 1 each to guarantee total debt amounted to 0.126. In 2011 showed total assets of USD 1 each to guarantee total debt amounted to 0.152. According to the theory described in chapter 2, if the assets are sufficient to or greater than the amount of debt means the company is said solvable (Soemarso (2005:389)). From three years to above, the results of all calculations, total assets is greater than the amount of debt, so the company said in a solvable state, which means the company’s assets or property sufficient to pay its debts.

c)      Equity to Total Assets Ratio

This ratio compares the own capital to total assets. This ratio measures the ability of total assets to meet the demand for the company’s own capital.

53.500.000.000

2007         =                                  x100 %

315.997.722.658

= 0,169 = 16,9 %

In 2007 this amounted to 0.169 ratiop calculation means that every Rp 1 total assets to meet capital of Rp 0.169. In 2008 this amounted to 0.151 ratiop calculation means that every Rp 1 total assets to meet capital of Rp 0.151. In 2009 the results of the calculation of this ratio of 0.146 means that every Rp 1 total assets to meet capital of Rp 0,146. And for the year 2010 amounted to 0.138 means that every Rp 1 total assets to meet capital of Rp 0,138. In 2011 this amounted to 0.127 ratiop calculation means that every Rp 1 total assets to meet capital of Rp 0.127. From year to year this ratio has decreased due to the addition of fixed assets.

2.3  Analisis Ratio Rentabilitas

Profitability is demonstrating the company’s ability to generate profits for a certain period.

a)      Equity Profitability

Profitability is the ratio between profit or net income derived from the principal activities of the company with his own wealth or capital used to generate those profits.

11.130.009.996

2007   =                                  x100 %

                             53.500.000.000

= 0,208 = 20,8 %

In 2007, with a capital of Rp 53.5 billion company is able to generate a net profit of Rp 11,130,009,996 to the level of their own capital profitability ratio calculation of 0.208 means that every Rp 1 capital itself capable of generating a net profit of Rp 0.208. In 2008, with a capital of Rp 53.5 billion company is able to generate a net profit of Rp 22,290,067,707 to the level of their own capital profitability ratio calculation of 0.417 means that every Rp 1 capital itself capable of generating a net profit of Rp 0.417. In 2009 with a capital of Rp 53.5 billion company is able to generate a net profit of Rp 21,016,846,720 to the level of their own capital profitability ratio calculation of 0.393 means that every Rp 1 capital itself capable of generating a net profit of Rp 0.393. In 2010 with a capital of Rp 53.5 billion company is able to generate a net profit of Rp 24,418,796,930 to the level of their own capital profitability ratio calculation of 0.456 means that every Rp 1 capital itself capable of generating a net profit of Rp 0.456. and in 2011 with a capital of Rp 53.5 billion company is able to generate a net profit of Rp 27,867,834,532 to the level of their own capital profitability ratio calculation of 0.521 means that every Rp 1 capital itself capable of generating a net profit of Rp 0.521. From 2008 to 2009 there was a decrease in productivity of 2.4%, while in 2010 there was an increase of 6.3%. Decline in productivity due to a decrease in interest income, while the increase in productivity due to the increase in sales.

b)      Economic Profitability

Rentability economics is comparison between profit venture with own capital and foreign capital which used for generate the profits so included and expressed in percentage.

18.435.709.774

2007         =                                                                      x100 %

53.500.000.000 + 56.700.000.000

= 0,167 = 16,7 %

In 2007, with USD 53.5 billion of its own capital and additional paid-in capital amounting to Rp 56.7 billion company is able to generate an operating profit of Rp 18,435,709,774 with the level of economic profitability ratio calculation of 0.167 means that every Rp 1 the amount of capital capable of generating an operating profit of Rp 0.167. In 2008, with USD 53.5 billion of its own capital and additional paid-in capital amounting to Rp 56.7 billion company is able to generate an operating profit of Rp 25,297,827,375 with the level of economic calculation of the profitability ratio of 0.23 means that every Rp 1 the amount of capital able to generate income from operations amounting to Rp 0.23, in 2009 with a capital of Rp 53.5 billion and additional paid-in capital amounting to Rp 56.7 billion company is able to generate an operating profit of Rp 41,549,255,147 with the level of economic profitability ratio calculation of 0.377 means that every Rp 1 capital amount capable generate an operating profit of USD 0.377 in 2010 with a capital of Rp 53.5 billion and additional paid-in capital amounting to Rp 56.7 billion company is able to generate an operating profit of Rp 37,033,624,625 with the level of economic profitability ratio calculation of 0.336 means that every Rp 1 the amount of capital capable of generating an operating profit of USD 0.336 . and in 2011 with USD 53.5 billion of its own capital and additional paid-in capital amounting to Rp 56.7 billion company is able to generate an operating profit of Rp 41,513,492,202 with the level of economic profitability ratio calculation of 0.377 means that every Rp 1 the amount of capital capable of generating an operating profit of Rp 0.377. From 2007 to 2008 there was an increase in productivity of 6.3%, in 2008 to 2009 there was an increase in productivity by 14.7% while in 2010 a decline of 4.1%, and in 2011 there was an increase of 4.1 % decrease in productivity due to an increase in total operating expenses in 2009.

 III.                        Conclusion

The level of liquidity in the PT Mustika Ratu Tbk be said to be very good because from 2007 to 2011 its current ratio is more than 200% and its quick ratio is more than 100%. It means that companies have no difficulty in restoring financial obligations that must be paid. Although the level of current ratio should be considered illiquid but the company can reduce its debt so as not too much as well as a higher priority than the payment obligations of play or invest it.

Seen from the solvency ratio, duty PT Mustika Ratu Tbk to meet long-term liabilities in 2007 and 2011 has decreased. This is due to the increase in total assets. Thus increasing capital financing assets grew therein.

Judging from the ratio of profitability, in 2007 the company is able to generate a profit of 16.7% of the total equity and foreign capital, in 2008 the company is able to generate a profit of 23% of total equity and foreign capital, in 2009 the company has increased earnings to 37.7%, whereas in 2010 there is a decrease produces a profit of 33.6%. And in 2011 produced a decline in profit amounted to 37.7%. This decrease was due to increased operating expenses and decreased the amount of interest income each year for the next 5 years (2007-2011)

 

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www.mustika-ratu.co.id