Financial
Statement Analysis With Method “RAKOKEL”
(The
ratio of operating cash flow to current liabilities)
1. Definition financial statement
Analysis:
Financial statement analysis is a process for understanding the risk and profitability
of the company and assess performance to determine the effectiveness of the
company's production. This analysis is very useful not only for the company's
internal, but also investors and other stakeholders.
Ø
Other definition about financial
statement :
Financial statement analysis is a process for understanding the risk and
profitability of the company and assess performance to determine the
effectiveness of the company's production.
2. Types Financial Statement Analysis
a) Liquidity
Ratios
This ratio is useful to measure a company's ability to meet its short term obligations. There are three types of liquidity ratios are used, the current ratio, quick ratio, Cash Ratio.
This ratio is useful to measure a company's ability to meet its short term obligations. There are three types of liquidity ratios are used, the current ratio, quick ratio, Cash Ratio.
b) Solvability ratio
This ratio is useful to measure a company's ability to meet all its obligations (short-term debt and long term debt). There are 4 solvency ratio is used. that is
This ratio is useful to measure a company's ability to meet all its obligations (short-term debt and long term debt). There are 4 solvency ratio is used. that is
·
Total Debt To Equity Ratio
·
Total Debt To Total Assets Ratio.
·
Long Term Debt To Equity.
·
Long Term Debt To Total Assets
c) Profitability ratios
This ratio is useful to measure a company's ability to generate earnings in a given period. There are four profitability ratios are used, that is:
This ratio is useful to measure a company's ability to generate earnings in a given period. There are four profitability ratios are used, that is:
·
Return On Equity (ROE)
·
Return On Assets (ROA)
·
Net Profit Margin
·
Gross Profit Margin.
d) Cash Flow analysis
3.
Definition of 'Operating Cash Flow
Ratio‘
“A measure of how well current liabilities are covered by the cash flow generated from a company's operations”. The ratio of operating cash flow to current liabilities is used to measure a company's financial liquidity. In particular, this ratio measures how much of the operating cash flow generated to cover the company's current liabilities of the company. The higher this ratio, the more liquid the company.
“A measure of how well current liabilities are covered by the cash flow generated from a company's operations”. The ratio of operating cash flow to current liabilities is used to measure a company's financial liquidity. In particular, this ratio measures how much of the operating cash flow generated to cover the company's current liabilities of the company. The higher this ratio, the more liquid the company.
Formula:
Cash Flow From Operation
Current Liability
4. Example
Financial Statement
|
Tahun
|
Arus Kas
Bersih Operasi (Rp juta)
|
Kewajiban
Lancar
(Rp juta)
|
RAKOKL
|
|
2008
|
4.253.895
|
7.874.135
|
0,54
|
|
2009
|
5.101.022
|
7.225.966
|
0,71
|
v
RESULT
RAKOKL 2008
= 4.253.895
7.874.135
= 0,54
RAKOKL 2009 = 5.101.022
7.225.966
= 0,71
5. Conclution
The table above shows that in 2008, PT
United Tractors Tbk and Subsidiaries able to provide cash flow from operating
activities amounted to 54% to cover current liabilities. While in 2009, the
company was able to provide the cash flow from operating activities amounted to
71% to cover current liabilities. This indicates that PT United Tractors Tbk and
Subsidiaries relatively illiquid. Although no standard that can be used to measure
the liquidity of the cash flow ratio.
