FINANCIAL ANALYSIS OF COCA COLA AMATIL AND

GARUDA INDONESIA
Putika Nuralida Herdin (13/344099/HK/19388) and Nadiya Hanifah (13/350321/HK/19674)

1. Coca Cola Amatil

From the summarized income statement, it can be derived that there has been an increase on the
trading revenue from 4.9 to 5.09. Although its not quite significant, but it shows the hike of performance
of corporate finance. Furthermore, Coca Cola Amatil has finally delivered profit growth of 4.8% after two
years of decline in the performance. This profit growth is caused by the reduction of most the companys
liability, up to $35.7.
The balance sheet also remains in a very strong position due to the net debt decreased by $725
million to $1,146.3 million, which was driven by the receipt of the equity injection by TCCC in
Indonesia, and makes the company has sufficient cash on hand. Aside from that, to see whether the
company is in a safe position and has enough cash to pay its short term debt, we should look to the
current ratio. Coca Cola Amatils current ratio has increased from 1.53 to 1.56, showing its good position.
The debt equity ratio also remains in healthy condition as its DER is around 1.77, which is far from the
maximum limit required by the banks.
From the statement of cash flow, we can see that all of the operating, investing and financing cash
flows have been doing well. In 2015, the statement shows that the company has a positive balance to fund
the investing activity. Payment to suppliers and employees is increased, while income taxes paid is
decreased from 148.2 to 179 which results to an increase of net operating cash flows.
In short, between 2014 and 2015, there is no significant change within the financial statements.
However, we may highlight the increase of net sales in 2015. If the increase of net sales is accompanied
by the decrease of liability in a big amount, profits gained in 2015 could be high. Coca Cola Amatil
Limited as a profit company limited by shares, which incorporated and domiciled in Australia, whose

shares are publicly traded o the Australian Securities Exchange, remains in a good condition. This
company is able to pay its debt, and the performance in the industry is above average. In conclusion, Coca
Cola Amatil has a very good potential, considering that people tend to choose ready to drink products
nowadays. However, if the company is willing to keep up in the business, it has to develop the strategies
against competitors within the same business area.

2. Garuda Indonesia
This analysis is obtained and concluded from the financial statements of PT Garuda Indonesia,
which ended on December 31, 2015. Garuda provides a complete, user-friendly and complex financial
review to help the readers determining its financial condition. Starting from the financial highlights,
particularly on consolidated statements of profit or loss and other comprehensive income, it shows that
Garuda Indonesia has been experiencing a fluctuate performance of corporate finance. The companys
operating revenues in 2015 decreased by 3.01% due to a decline in scheduled airline services of 5.19%.
However, the business development strategy through the Quick Wins program by conducting Companys
cost driver (efficiency) was able to record more profits for Garuda Indonesia.
From the consolidated statements of financial position, total assets of the company in 2015 grew
by 6.33%, mainly due to an increase in Current Assets compared to 2014. However, we can see that the
company also recorded an increase in total liabilities amounted to 5.63%. Meaning that the company does
not have enough assets over its short term liabilities. In 2015, the debt to equity ratio has also increased to
1,43x due to the increase on liabilities. Currently, the company still maintains a good solvency. Its worth
noting that almost 70% of companys expenses are paid in dollars, while the revenues are gained in
rupiah. The company must be able to keep the normal threshold, particularly when rupiah is weak.
The statement of cash flows in 2015 shows that the company has sufficient positive cash to fund
the investing activity. The growth of cash flows from operating activities up to 431%, which is a good
news. On the other hand, cash flows used in investing activities dropped by 21.83% due to lower advance

payments of the aircraft purchase of 58.40%. The decrease also found in cash flows from financing
activities that decreased by 28.28% compared to 2014.
According to the analysis conducted, we can conclude that Garuda Indonesias financial condition
was not in a good potential at that time, due to the high development on air transport industry and high
demand on low cost flight, causing a tight competition within the industry. Even though in 2015 Garuda
Indonesia has successfully increased by 33% due to the increase of frequency and flight capacity, this
number was not satisfying. Garuda Indonesia should use the growth in the number of foreign tourists in
2016 as the impact of the free visa policy to attract more investors. In addition, downward trend on jet
fuel and infrastructure development acceleration in Indonesia should also be a good trigger for Garuda to
achieve its financial and operational targets set in 2016.