Comparative Analysis of Financial Statement PT. INDOCEMENT TUNGGAL PRAKARSA TBK

Comparative Analysis of Financial Statement

PT. INDOCEMENT TUNGGAL PRAKARSA TBK

Indra Agus Wibowo

C1K011022

 

A.    Ilustration of Comparative Analysis

In balance sheet PT. INDOCEMENT TUNGGAL PRAKARSA TBK can be seen comparative of each account between end year of 2010 and 2011 (figure 3.1), indicated the following explanations:

1.      The number of Rupiah for each asset, liabilities, and equity and the components of each asset, liabilities, and equity on the date 31 December 2010 and 31 December 2011. That is completed with the changes of them.

2.      According to number in changes column (increase and decrease) may be known that:

a.       Current assets increase amount of Rp 2.829.766, meanwhile current liabilities only increase Rp 128.891. It indicates  an increase in working capital (working capital is current assets minus current liabilities) which may be caused by:

1).    obtaining profits or earnings,

2).    changes in fixed assets to current assets through sales or depreciation,

3).    obtaining long term debt, or

4).    Addition in capital of stock or issuing new stock.

By change in current assets that was higher than change in current liabilities, it indicates an improvement short-term financial position.

b.      Total Assets experiences in increase amount of Rp 2.805.185, Total liabilities decreases amount of Rp 171,832 and equity increases amount of 2,633,353, which Rp 2,624,231 of total equity come from retained earning. The increase in equity sector and decrease in liabilities indicates that the equity has higher role. On the contrary, the liabilities come from lenders has lower role. So, safety of creditors is more secure because the company is more solvable.

c.       Changes in the amount of rupiah as the above analysis will be clear on the change in persentage. Current assets rises 38%, meanwhile current liabilities only rise 10% which means the company is more liquid. Total asset rise 18%, total liabilities just increase 8%, meanwhile equity rise 20%. It indicates that the long-term financial position at year 2011 is better than year 2010. Change in this percentage more supports the result of above analysis.

By analyzing the income statement compared between year 2010 and 2011 (figure 3.2), there will be known the level of development and efficiency have been achieved, for example:

1.      At year 2010, gross profit increase 16%. The change or increase in gross profit Rp 873,461 or 16% can be analyzed furthermore by knowing the influence factor. Is it caused by change in sales volume, change in selling price, or change in cost per unit of good sold.

2.      Sales expenses increases Rp 426.856 or 35% and administration expenses increases amount of Rp 39.642 or 13%, while net revenue increases only 25%. Sales expenses at year 2006 are only 11% from total net revenue, while at year 2007 became 12%. It is caused by rising in advertence expenses which is followed by rising in element of the others sales expences.

3.      The increasing in net revenue can affect on rising in net earnings. Though if it related with the level of sales, then both (year 2010 and 2011) are gained similar percentage (32%). It means each Rp 1 of sales, 32 cent is earnings.

Increasing in net sales 25% is followed by increasing in account receivable only 43%. It shows better condition. Account receivable turnover at year 2010 amount of 8.2 times, while at year 2011 amount of 8.4 times. It indicates that the capital invested in account receivable at year 2011 is faster in receivable (average is 42 days) compared at year 2010 (average is 44 days).

The level of inventory turnover at year 2010 amount of 4.3 times and at year 2011 near to 4.9 times, then the average period of inventory provided in storage is 84 days, while at year 2011 for 73 days. Observed from total assets, the investment on inventory at year 2010 is more related with the capacity of sales that can be achieved at those years.

The gross profit at year 2011 is experienced in rise amount of Rp 873.461 or 16 %. This rising is caused by rising in net revenue RP 2.750.087 or 25%, and followed by rising in cost of goods sold amount of Rp 1.876.626 (34%).

Working capital at year 2011 increases Rp 3.506.648. It can be computed as follow:

Source of fund:

Operating income (EBT)      Rp 4.708.156

Depreciation                         Rp (64.706)      Rp 4.643.450

Use of fund:

Deferred tax assets - net      Rp    7.941

Long-term investments        Rp    6.299

Other non-current assets      Rp    25.885

Paying bond                         Rp    128.891

Paying dividend                   Rp    967.786    Rp 1.136,802

Increase in working capital:                              Rp 3.506.648

B.     Ilustration of Common Size Analysis

According to the balance sheet and income statement PT. INDOCEMENT TUNGGAL PRAKARSA Tbk years 2010 dan 2011 (figure 3.1 and 3.2), can be known the percentage per component from the total. The example for computing percentage and the analysis are as follow.

1.      Account (Trade) Receivable in year 2010

Account Receivable (2010) Rp   1.355.228

                                          =                                        X 100%           = 8.8%

Total Assets (2010)                 Rp 15.346.146

This value (8.8%) can be interpreted that the balance of account receivable at date 31 December 2010 is 8.8% from total assets at the end of year or each Rp 1 of assets is invested in form of account receivable amount of Rp 0.088.

2.      Account Payable year 2011

Account Payable (2011)   Rp 836.268

                                          =                            X 100%  = 4.6%

Total Passiva (2011)          Rp 18.151.331

This value indicates that the balance of account payable at 31 December 2011 is amount of 4.6% from total passiva (liabilities and equity), or each Rp 1 of passiva per 31 December 2011, amount of Rp 0.046 is account payable. In the other word, each Rp 1 of assets is financed from account payable amount of Rp 0.046.

3.      Cost of Good Sold (COGS) at year 2010

COGS (2010)                    Rp 5.540.762

                                          =                            X 100%  = 49.7%% 

Net Sales (2010)               Rp 11.137.805

This value means that COGS (HPP, harga pokok penjualan) at year 2010 is 49.7% from net sales (2010). On the other hand, each Rp 1 of sales, amount of Rp 0.497 will be allocated in COGS.

4.      Operating income (operating net income) year 2011

Operating income (2011)  Rp 4.418.023

                                          =                            X 100%  = 31.8%

Net Sales (2011)               Rp 13.887.892

This value (31.8%) means that operating income year 2011 is amount of 31.8% from net sales. In the other words, each Rp 1 of net sales, the company will obtain income amount of Rp 0.318.