MADE GITANADYA, SE., MSM.

1. as a mean of comparison with:

 Historical performance
 Closest competitor
 Industrial average

1. To describe a trend in company

2. To combine the view from balance sheet and income statement
 BS covers a day while IS for a period, so ideally, the figures in BS should
be using average from beginning and ending (Jan 1st and Dec 31st )
• Gross Profit Margin • Net Working
• Operating Profit Margin
Capital
• Net Profit Margin
• Return on Asset • Current ratio
• Return on Investment • Quick (acid) ratio
• Return on Equity

Profitability Liquidity

Debt/
Activity
Solvency
• Debt Ratio •Inventory Turnover
• Debt-Equity •Average Collection
Period FINANCIAL
•Average Payment
period
RATIOS
PROFITABILITY
Income Statement 1 January 2014 - 31 December 2014
Sales 9,000,000 Gross profit
Cost of Good solds 4,500,000 Gross profit margin = --------------------- = 50%
Gross Profit 4,500,000
Sales
Operating expenses 3,090,000
Advertising 426,000 Operating profit
Salaries 1,403,000 Operating profit margin = ------------------------ = 16%
Insurance 110,000 Sales
Depreciation 500,000
Maintenance 90,000 Net profit
Other expenses 561,000 Net profit margin = --------------------- = 11.9%
Profit from operation (EBIT) 1,410,000 Sales
Interest expenses 24,000
Profit before taxation (EBT) 1,386,000
Taxation 388,080 APA BEDANYA?
Net Profit (EAT) 997,920
Profitability
EAT
Return on assets = --------------------- = 10.97%
Total assets

EAT
Return on equity = --------------------- = 16.63%
Total Equity

Assets Liabilities & Equity

Current Assets 1,600,000 Current Liabilities 1,200,000
Cash and cash equivalents 100,000 Acc. Payable 1,200,000
Acc. Receivables 900,000
Inventory 600,000 Long-term Liabilities 1,900,000
Long term loan 1,900,000
Non-current Assets 7,500,000
Property, Plant & Equipment 9,000,000 Shareholders' Equity 6,000,000
Accumulated Depreciation 1,500,000 Ordinary shares 5,000,000
Retained earning 1,000,000
Total Assets 9,100,000 Total Liabilities & Equity 9,100,000
 Net Income Before Minority Share of
RETURN ON
Earnings and Nonrecurring Items
INVESTMENT = + Interest Expense   1-Tax Rate  
Average Long-Term Liabilities + Equity 

APA BEDANYA?
 Measures
Rate of
return to Typical result
return on
providers of
Assets All funds Lowest (includes all assets)
Higher than ROA (relative small amount of
Investment Long-term funds
short-term funds)
Higher than ROI (measures return only to
Total equity Equity
shareholders)
Highest
• Common shareholders absorb greatest
degree of risk
Common equity Common equity
• Requires that return to preferred
shareholders exceed funds paid to
preferred shareholders
Chapter
Copyright 2007 by Thomson South-Western, a part of The Thomson Corporation. All rights reserved. 8, Slide
#7
 Laba yang digunakan adalah laba tahun berjalan tanpa
memasukkan other comprehensive income/loss (contoh lapkeu
ASII) >> why?
 https://www.investopedia.com/ask/answers/102714/what-are-
differences-between-comprehensive-income-and-other-
comprehensive-income.asp
 Menghitung tarif pajak perseroan termasuk sulit dilakukan
karena belum final >> (beban pajak/laba sebelum pajak)
 Finance cost = biaya bunga
Profitability Ratio for Semen Indonesia

Nominal in IDR billions Industry Average

Year
EAT Sales Equity Assets NPM ROE ROA
2012 4,926 19,598 18,164 26,579 22.51% 22.52% 17.01%
2013 5,354 24,501 21,803 30,792 19.55% 19.55% 14.07%
2014 5,573 26,987 25,002 34,134 17.90% 16.97% 12.71%

Apakah rasio profitabilitas untuk Semen Indonesia

lebih baik / buruk dibanding industrinya?
Liquidity Ratios
Current assets
Current Ratio = --------------------- = 1.33x
Current liability

Current assets - Inventory

Quick Ratio = ------------------------------- = 0.83 x
Current liability

Cash & equivalents

Cash Ratio = ------------------------- = 0.083x
Current liability
 Apa beda ketiga rasio likuiditas tsb?
 Rule of thumb >> current ratio 2x, quick ratio 1x
 Tapi setiap industri memiliki standar masing – masing (ex.
airlines, real estate, perkebunan)
 Perusahaan punya sumber likuiditas selain current asset
 Liquidity Ratio for Semen Indonesia
Nominal in IDR billions Industry Average
Year Cash and cash Total liquid total short Cash quick current
Inventory
equivalents assets term liabilites ratio ratio ratio
2012 3,022 2,284 8,231 4,825 205.66% 253.43% 304.00%
2013 4,070 2,645 9,972 5,297 233.83% 248.30% 246.27%
2014 4,925 2,811 11,648 5,273 147.93% 216.60% 627.00%

Determine if SI’s liquidity ratio is better or worse!

Profitability and liquidity ratio shows that the higher
the better for companies
More secure against short term debt
higher profit acquired
more efficient and reliable production process >> lower cost
Activity Ratios
COGS
Inventory Turnover = --------------------- = 7.5 x
Inventory

Days of Inventory = 360 / 7.5 = 48 hari

Sales
Receivables Turnover = --------------------- = 10 x
Acc. Receivable

Days of Receivables = 360 / 10 = 36 hari

Assets Liabilities & Equity
Current Assets 1,600,000 Current Liabilities 1,200,000
Cash and cash equivalents 100,000 Acc. Payable 1,200,000
Acc. Receivables 900,000
Inventory 600,000 Long-term Liabilities 1,900,000
COGS Long term loan 1,900,000
Payables Turnover = --------------- = 3.75 x Non-current Assets 7,500,000
Payables Property, Plant & Equipment 9,000,000 Shareholders' Equity 6,000,000
Accumulated Depreciation 1,500,000 Ordinary shares 5,000,000
Retained earning 1,000,000
Days of Payables = 360 / 7.5 = 96 hari Total Assets 9,100,000 Total Liabilities & Equity 9,100,000
Activity Ratios
Sales
Total Assets Turnover = ----------------- = 98%
Total Assets

Sales
Working Capital Turnover = --------------------------- = 22.5x
Net Working Capital

Assets Liabilities & Equity

Current Assets 1,600,000 Current Liabilities 1,200,000
Cash and cash equivalents 100,000 Acc. Payable 1,200,000
Acc. Receivables 900,000
Inventory 600,000 Long-term Liabilities 1,900,000
Long term loan 1,900,000
Non-current Assets 7,500,000
Property, Plant & Equipment 9,000,000 Shareholders' Equity 6,000,000
Accumulated Depreciation 1,500,000 Ordinary shares 5,000,000
Retained earning 1,000,000
Total Assets 9,100,000 Total Liabilities & Equity 9,100,000
Activity Ratios for Semen Indonesia

SEMEN INDONESIA INDUSTRY AVERAGE

current long term current Working
Year assets assets liabilities Sales Assets TO Capital TO
2012 7,109 19,470 4,825 19,598 0.74 5.45
2013 7,942 22,850 5,297 24,501 0.71 6.26
2014 8,084 26,230 5,273 26,987 0.69 6.98

Determine if SI’s activity ratio is better or worse!

 Leverage Ratio
Total Debt
Debt Ratio = --------------------- = 34.07%
Total Assets

Total Debt
Debt to Equity Ratio = -------------------- = 52%
Total Equity

Apa bedanya?

Notes: seringkali debt yang digunakan adalah interest bearing debt

Leverage Ratios for Semen Indonesia

SEMEN INDONESIA INDUSTRY AVERAGE

Year total debt total equity DER Debt to Assets
2012 8,414 18,164 27.69% 21.37%
2013 8,988 21,803 33.00% 25.26%
2014 9,312 25,002 38.66% 26.03%

Determine if SI’s leverage ratio is better or worse!

•Liquidity Ratios
Current ratio Naik GOOD
Quick ratio Naik GOOD
Cash ratio Naik GOOD
•Leverage Ratios
Debt to total assets ratio Naik BAD
Debt to equity ratio Naik BAD
Long-term debt to equity ratio Naik BAD
Time interest earned ratio Naik GOOD
Activity Ratios
Receivable turnover Naik GOOD
Average collection period Naik BAD
Inventory turnover Naik GOOD
Average days in inventory Naik BAD
Assets turnover Naik GOOD
Profitability Ratios
Gross profit margin Naik GOOD
Operating profit margin Naik GOOD
Net profit margin Naik GOOD
Return on assets Naik GOOD
Return on equity Naik GOOD
Market Value Ratios
Dividend payout ratio Naik GOOD
Dividend yield Naik GOOD
Earning per-share Naik GOOD
Price earning ratio Naik BAD
Price book value Naik BAD