FINANCIAL STATEMENT

ANALYSIS
 Financial Statement Analysis

Who analyzes financial statements?

• Internal users (i.e., management)
• External users,
(i.e., Investors, creditors, regulatory agencies, stock
market analysts and auditors)
 Financial Statement Analysis

What do internal users use it for?

• Planning, evaluating and controlling company operations

What do external users use it for?

• Assessing past performance and current financial position and
making predictions about the future profitability and solvency
of the company as well as evaluating the effectiveness of
management
 Methods of
Financial Statement Analysis

 Horizontal Analysis
 Vertical Analysis
 Common-Size Statements
 Trend Percentages
 Ratio Analysis
Horizontal Analysis
• Using comparative financial statements to calculate rupiah or
percentage changes in a
financial statement item from
one period to the next
Vertical Analysis
For a single financial statement, each item
is expressed as a percentage of a significant total,
e.g., all income statement items are expressed as a percentage of
sales
Common-Size Statements

Financial statements that show only percentages and no absolute

rupiah amounts
Trend Percentages
• Show changes over time in
given financial statement items
(can help evaluate financial information of several years)
Ratio Analysis
• Expression of logical relationships between items in a
financial statement of a single period
(e.g., percentage relationship between revenue and net
income)
 Horizontal Analysis Example
PT. Banyu Kahuripan Indonesia
Neraca
Tahun 2011 s/d 2012
Dalam Rupiah Penuh

ASET         2011 2012

Amount %
          Rp Rp
Aset Lancar          
  Kas dan Bank   8.030.000.000 18.877.796.959 10.847.796.959 135%
  Piutang Usaha          
  Pihak Berelasi   - -    
  Pihak Ketiga   5.557.000.000 11.311.164.060 5.754.164.060 104%
  Piutang Lain-lain          
  Pihak Berelasi   12.515.000.000 7.337.673.402 -5.177.326.598 -41%
  Pihak Ketiga   0 15.215.510.797 15.215.510.797 100%
Persediaan   9.186.000.000 42.440.963.271 33.254.963.271 362%
Pajak Dibayar di Muka   5.962.000.000 7.015.716.600 1.053.716.600 18%
Uang Muka dan Biaya Dibayar di Muka 819.000.000 14.392.675.362 13.573.675.362 1657%
Jumlah Aset Lancar 42.069.000.000 116.591.500.450 74.522.500.450 177%
   
PT. Banyu Kahuripan Indonesia
Rugi/Laba
Tahun 2011 s/d 2012
Dalam Rupiah Penuh 2011 2012 Amount %
         
Penjualan 127.892.000.000 268.278.135.490 140.386.135.490 110%
Beban Pokok Penjualan 120.591.000.000 203.285.783.757 82.694.783.757 69%
Laba Kotor 7.301.000.000 64.992.351.733 57.691.351.733 790%
Beban Usaha 10.229.000.000 15.383.304.067 5.154.304.067 50%
Laba Usaha (2.928.000.000) 49.609.047.666 46.681.047.666 1594%

Pendapatan Lain-lain
Pendapatan Jasa Giro 225.000.000 294.161.783 69.161.783 31%
Pendapatan Bunga Deposito 75.000.000 164.825.542 89.825.542 120%
Laba Valas yg terealisasi 595.000.000 64.179.945 (530.820.055) -89%
Laba Valas yg belum terealisasi -
Pendapatan Pajak Tangguhan -
Surplus Revaluasi Tanaman Perkebunan -
Lain-lain Bersih 836.000.000 10.716.667 (825.283.333) -99%
JUMLAH 1.731.000.000 533.883.937 (1.197.116.063) -69%

Beban Lain-Lain
Rugi Valas yg terealisasi 1.972.000.000 3.082.618.131 1.110.618.131 56%
Bunga Bank KI 0 57.656.241.134 57.656.241.134 100%
Bunga Leasing 317.000.000 895.203.578 578.203.578 182%
Lain-lain – Bersih 14.807.000.000 7.203.211.263 (7.603.788.737) -51%
JUMLAH 17.096.000.000 68.837.274.105 51.741.274.105 303%
Laba / Rugi sebelum manfaat pajak penghasilan (18.293.000.000) (18.694.342.502) (401.342.502) 2%
Vertical Analysis Example
PT. Banyu Kahuripan Indonesia

Neraca

Tahun 2011 s/d 2012

Dalam Rupiah Penuh

ASET         % of Total Aset Lancar

2011 2012
          2011 2012
Rp Rp

Aset Lancar          

  Kas dan Bank   8.030.000.000 18.877.796.959 19% 16%

  Piutang Usaha          

  Pihak Berelasi   - -    

  Pihak Ketiga   5.557.000.000 11.311.164.060 13% 10%

  Piutang Lain-lain          

  Pihak Berelasi   12.515.000.000 7.337.673.402 30% 6%

  Pihak Ketiga   0 15.215.510.797 0% 13%

Persediaan   9.186.000.000 42.440.963.271 22% 36%

Pajak Dibayar di Muka   5.962.000.000 7.015.716.600 14% 6%

Uang Muka dan Biaya Dibayar di Muka 819.000.000 14.392.675.362 2% 12%

Jumlah Aset Lancar     42.069.000.000 116.591.500.450 100% 100%
RATIOS
Ratios can be expressed in three different ways:
1. Ratio (e.g., current ratio of 2:1)
2. % (e.g., profit margin of 2%)
3. Rp (e.g., EPS of Rp. 2.25)
Categories of Ratios
Liquidity Ratios
• Indicate a company’s short-term debt-paying ability

Equity (Long-Term Solvency) Ratios

• Show relationship between debt and equity financing in a
company

Profitability Tests
• Relate income to other variables

Market Tests
• Help assess relative merits of stocks in the marketplace
Liquidity Ratios

• Current (working capital) ratio

• Acid-test (quick) ratio
oCash flow liquidity ratio
• Accounts receivable turnover
• Number of days’ sales in accounts receivable
• Inventory turnover
o Total assets turnover
 Equity (Long-Term Solvency) Ratios

• Equity (stockholders’ equity) ratio

o Equity to debt
Profitability Tests

Return on operating assets (ROA)

• Net income to net sales (return on sales or “profit margin”)
• Return on average common stockholders’ equity (ROE)
Cash flow margin
• Earnings per share
Times interest earned
Times preferred dividends earned
Market Test
Earnings yield on common stock
• Price-earnings ratio

Payout ratio on common stock

Dividend yield on common stock
Dividend yield on preferred stock
Cash flow per share of common stock
 Financial Statement BKI
• ..\Materi Training FA - COO rev 1\Understanding FS\Studi
Kasus\Studi Kasus - BKI\Soal BKI final.xls
Financial Info
BKI 2012

Cash 18.877.796.959
Account Receivable net
Beginning of year 12.515.000.000
End of year 22.553.184.199
Inventory
Beginning of year 9.186.000.000
End of year 42.440.963.271
Total current assets 116.591.500.450
Total current liabilities 192.212.872.970
Sales on account 268.278.135.490
Cost of Goods sold 203.285.783.757
Working Capital
• The excess of current assets over current liabilities

2012

Current assets 116.591.500.450

Current liabilities 192.212.872.970

Working Capital (75.621.372.520)

 1. Current (working capital) Ratio

Current Assets
Current Ratio : ---------------
Current Liabilities

116.591.500.450
Current Ratio : ---------------------- x 100% = 61%
192.212.872.970

Measures the ability

of the company to pay current
debts as they become due.
 2. Acid Test- (Quick Ratio)

Quick Assets
Acid Test = ------------------
Current Liabilities

Quick assets are Cash,

Marketable Securities, Accounts
Receivable (net) and
current Notes Receivable.
 18.877.796.959 + 22.553.184.199
Acid Test = ---------------------------------------------- x 100%
192.212.872.970

= 22%
 3. Accounts Receivable Turnover
This ratio measures how many times a company
converts its receivables into cash each year.

Net Credit Sales

Sales on Account
Accounts Receivable = ----------------------------------------------
Turnover Average Accounts Receivable

Average net accounts

receivable

268.278.135.490
Accounts Receivable = -----------------------------------------------
Turnover (12.515.000.000 + 22.553.184.199) : 2

= 15,30 times
4. Number of Days’ Sales in Accounts Receivable

365 days
Days Sales in : ----------------------------------------------
accounts Receivables accounts receivable turnover

365 days
Days Sales in : ---------------------- = 23,86 days
accounts Receivables 15,30 times
5. Inventory Turnover
Cost of Goods Sold
Inventory Turnover = -------------------------------
Average Inventory

203.285.783.757
Inventory Turnover = ---------------------------------------------
(9.186.000.000 + 42.440.963.271) : 2

203.285.783.757
= -------------------------
25.813.481.635,5

= 7,88 times
Equity, or Long–Term
Solvency Ratios