FINANCIAL MANAGEMENT ASSIGNMENT

ANALYSIS FINANCIAL STATEMENT PERFORMANCE

PT BUKIT ASAM (PERSERO) Tbk

LECTURER:
Prof. Dr. NikiLukviarman SE, MBA, Ak
SilvyAstari SE, M.Sf

Member of Group :
TefiPutriMeliska (1510534023)
Yolanda Wirawan (1510534028)
PutriShalshabilaAstari (1510534029)

International Accounting
Economic Faculty
Andalas University
2016
 Horizontal Analysis

2015
Percentage (%) =(2014 − 1) x 100%

 Income Statement
INCOME 2014 2015
Increase or Decrease
Explanation
STATEMENT Amount percentage
Revenue 13,077,962 13,733,627 655,665 5.01% Increase
Cost of revenue 9,155,696 9,593,903 438,207 4.79% Increase
Gross profit 3,922,266 4,139,724 217,458 5.54% Increase
General and administrative
expense 1,059,527 1,030,647 -28,880 -2.73% Decrease
Selling and marketing expenses 736,626 692,818 -43,808 -5.95% Decrease
Other income/(expenses), net 76,689 1,919 -74,770 -97.50% Decrease
Operating profit 2,049,424 2,414,340 364,916 17.81% Increase
Finance income 267,647 272,812 5,165 1.93% Increase
Finance costs 48,701 157,325 108,624 223.04% Increase
Share in net profit of joint
ventures 145,582 133,969 -11,613 -7.98% Decrease
Profit before income tax 2,413,952 2,663,796 249,844 10.35% Increase
Income tax expenses 550,171 626,685 76,514 13.91% Increase
Profit for the year 1,863,781 2,037,111 173,330 9.30% Increase

 Statement of Financial Position

Increase or Decrease
Assets 2014 2015 Explanation
Amount percentage
CURRENT ASSETS
Cash and cash equivalents 4,039,267 3,115,337 -923,930 -22.87% Decrease
Trade receivables
-Third parties 307,224 538,129 230,905 75.16% Increase
-Related parties 1,132,177 1,057,451 -74,726 -6.60% Decrease
available for sale financial 296,492 623,879 327,387 110.42% Increase
assets
Inventories 1,033,360 1,233,175 199,815 19.34% Increase
prepayments and advances 131,429 297,494 166,065 126.35% Increase
Prepaid taxes
-Income taxes 147,431 159,827 12,396 8.41% Increase
-Other taxes 91,565 423,168 331,603 362.15% Increase
Other current assets 237,860 150,016 -87,844 -36.93% Decrease
Total current assets 7,416,805 7,598,476 181,671 2.45% Increase
NON-CURRENT ASSETS
Other receivable from related 29,281 43,127 13,846 47.29% Increase
parties
Prepayment and advances 41,293 11,775 -29,518 -71.48% Decrease
Investment in associates 0 169,680 169,680
Investment in joint ventures 936,346 1,070,314 133,968 14.31% Increase
Deferred development 1,459,737 1,442,546 -17,191 -1.18% Decrease
expenditure
Fixed assets 3,987,565 5,579,117 1,591,552 39.91% Increase
Mining properties 59,770 46,648 -13,122 -21.95% Decrease
Plantations 302,966 274,118 -28,848 -9.52% Decrease
Prepaid taxes
-Income tax 230,593 22,825 -207,768 -90.10% Decrease
Deferred tax assets 276,536 431,022 154,486 55.86% Increase
Goodwill 0 102,077 102,077
Other non-current assets 119,719 102,318 -17,401 -14.53% Decrease
Total non-current assets 7,443,806 9,295,567 1,851,761 24.88% Increase
TOTAL ASSETS 14,860,611 16,894,043 2,033,432 13.68% Increase

Increase or Decrease
LIABILITY 2014 2015
Amount Percentage
Explanation
SHORT TERM
LIABILITIES
Trade payables
Third parties - 443,314 1,009,856 566,542 127.80% Increase
Related parties - 102,191 136,233 34,042 33.31% Increase
Accrual 1,203,765 1,647,428 443,663 36.86% Increase
short-term employee benefits
liabilities 236,056 222,025 -14,031 -5.94% Decrease
Taxes payable Decrease
Income tax - 1,755 52,189 50,434 2873.73% Increase
Other taxes - 63,084 124,027 60,943 96.61% Increase
Short-term portion of finance
lease liabilities 0 15,851 15,851
Short-term bank borrowings 826,428 739,000 -87,428 -10.58% Decrease
Short-term portion of long term
bank borrowings 467,235 597,034 129,799 27.78% Increase
Provision for environmental
reclamation and mine closure 89,940 110,900 20,960 23.30% Increase
Short-term portion of post
employment benefits obligation 111,209 181,333 70,124 63.06% Increase
Other short-term liabilities 36,029 86,857 50,828 141.08% Increase
Total short-term liabilities 3,581,006 4,922,733 1,341,727 37.47% Increase
LONG TERM LIABILITIES
Provision for environmental
reclamation and mine closure 147,131 140,216 -6,915 -4.70% Decrease
Financial lease liabilities 0 46,980 46,980
Post- employment benefits
obligation 1,645,643 1,873,375 227,732 13.84% Increase
Bank borrowings 961,753 623,192 -338,561 -35.20% Decrease
Total long-term liabilities 2,754,527 2,683,763 -70,764 -2.57% Decrease
TOTAL LIABILITIES 6,335,533 7,606,496 1,270,963 20.06% Increase

Increase or Decrease
EQUITIES 2014 2015
Amount percentage
Explanation

EQUITY
Share capital 1,152,066 1,152,066 0 0.00% Fixed
Additional paid-in capital 30,486 30,486 0 0.00% Fixed
Treasury shares 1,899,413 2,301,637 402,224 21.18% Increase
Reserve for changes in fair
value of available-for-sale
financial assets 2,093 -11,571 -13,664 -652.84% Decrease
Currency differences from
translation of subsidiary's
financial statements 62,986 113,581 50,595 80.33% Increase
Retained earnings Decrease
Appropriated - 7,296,758 8,607,269 1,310,511 17.96% Increase
Unappropriated - 1,762,871 1,584,502 -178,369 -10.12% Decrease
8,407,847 9,174,696 766,849 9.12% Increase
Non-controlling interests 117,231 112,851 -4,380 -3.74% Decrease
TOTAL EQUITY 8,525,078 9,287,547 762,469 8.94% Increase
TOTAL LIABILITIES AND
EQUITIES 14,860,611 16,894,043 2,033,432 13.68% Increase
 Vertical Analysis

2014 𝑜𝑟 2015
Percentage (%) =( ) x 100%
𝐵𝑎𝑠𝑒

 Statement of Financial Position

2014 2015
ASSETS
Amount Percentage Amount Percentage
Current Assets
Cash and cash equivalents 4,039,267 27.18% 3,115,337 18.44%
Trade receivables
Third parties 307,224 2.07% 538,129 3.19%
Related parties 1,132,177 7.62% 1,057,451 6.26%
available for sale financial
assets 296,492 2.00% 623,879 3.69%
Inventories 1,033,360 6.95% 1,233,175 7.30%
prepayments and advances 131,429 0.88% 297,494 1.76%
Prepaid taxes
Income taxes 147,431 0.99% 159,827 0.95%
Other taxes 91,565 0.62% 423,168 2.50%
Other current assets 237,860 1.60% 150,016 0.89%
Total current assets 7,416,805 49.91% 7,598,476 44.98%
NON-CURRENT
ASSETS
other receivable from
related parties 29,281 0.20% 43,127 0.26%
Prepayment and advances 41,293 0.28% 11,775 0.07%
Investment in associates 169,680 1.00%
Investment in joint
ventures 936,346 6.30% 1,070,314 6.34%
Deferred development
expenditure 1,459,737 9.82% 1,442,546 8.54%
Fixed assets 3,987,565 26.83% 5,579,117 33.02%
Mining properties 59,770 0.40% 46,648 0.28%
Plantations 302,966 2.04% 274,118 1.62%
Prepaid taxes
Income tax 230,593 1.55% 22,825 0.14%
Deferred tax assets 276,536 1.86% 431,022 2.55%
Goodwill 102,077 0.60%
Other non-current assets 119,719 0.81% 102,318 0.61%
Total non-current assets 7,443,806 50.09% 9,295,567 55.02%
TOTAL ASSETS (base) 14,860,611 100.00% 16,894,043 100.00%

The percentage indicate the how big the influence of account in Assets to Total Assets.
 2014 2015
LIABILITIES
Amount Percentage Amount Percentage
SHORT TERM
LIABILITIES
Trade payables
Third parties - 443,314 7.00% 1,009,856 13.28%
Related parties - 102,191 1.61% 136,233 1.79%
Accrual 1,203,765 19.00% 1,647,428 21.66%
short-term employee
benefits liabilities 236,056 3.73% 222,025 2.92%
Taxes payable
Income tax - 1,755 0.03% 52,189 0.69%
Other taxes - 63,084 1.00% 124,027 1.63%
Short-term portion of
finance lease liabilities 15,851 0.21%
Short-term bank borrowings 826,428 13.04% 739,000 9.72%
Short-term portion of long
term bank borrowings 467,235 7.37% 597,034 7.85%
Provision for environmental
reclamation and mine
closure 89,940 1.42% 110,900 1.46%
Short-term portion of post
employment benefits
obligation 111,209 1.76% 181,333 2.38%
Other short-term liabilities 36,029 0.57% 86,857 1.14%
Total short-term liabilities 3,581,006 56.52% 4,922,733 64.72%
LONG TERM
LIABILITIES
Provision for environmental
reclamation and mine
closure 147,131 2.32% 140,216 1.84%
Financial lease liabilities 46,980 0.62%
Post- employment benefits
obligation 1,645,643 25.97% 1,873,375 24.63%
Bank borrowings 961,753 15.18% 623,192 8.19%
Total long-term liabilities 2,754,527 43.48% 2,683,763 35.28%
TOTAL LIABILITIES
(base) 6,335,533 100.00% 7,606,496 100.00%

The percentage indicate the how big the influence of account in Liabilities to Total Liabilities.
 2014 2015
EQUITY
Amount Percentage Amount Percentage
Share capital 1,152,066 13.51% 1,152,066 12.40%
Additional paid-in capital 30,486 0.36% 30,486 0.33%
Treasury shares -1,899,413 -22.28% -2,301,637 -24.78%
Reserve for changes in fair
value of available-for-sale
financial assets 2,093 0.02% -11,571 -0.12%
Currency differences from
translation of subsidiary's
financial statements 62,986 0.74% 113,581 1.22%
Retained earnings
Appropriated - 7,296,758 85.59% 8,607,269 92.68%
Unappropriated - 1,762,871 20.68% 1,584,502 17.06%
8,407,847 98.62% 9,174,696 98.78%
Non-controlling interests 117,231 1.38% 112,851 1.22%
TOTAL EQUITY (base) 8,525,078 100.00% 9,287,547 100.00%

The percentage indicate the how big the influence of account in Equity to Total Equity.

 Income Statement
2014 2015
INCOME STATEMENT
Amount Percentage Amount Percentage
Revenue (base) 13,733,627 100.00% 13,077,962 100.00%
Cost of revenue 9,593,903 69.86% 9,155,696 70.01%
Gross profit 4,139,724 30.14% 3,922,266 29.99%
General and administrative
expense 1,030,647 7.50% 1,059,527 8.10%
Selling and marketing
expenses 692,818 5.04% 736,626 5.63%
Other income/(expenses), net 1,919 0.01% 76,689 0.59%
Operating profit 2,414,340 17.58% 2,049,424 15.67%
Finance income 272,812 1.99% 267,647 2.05%
Finance costs 157,325 1.15% 48,701 0.37%
Share in net profit of joint
ventures 133,969 0.98% 145,582 1.11%
Profit before income tax 2,663,796 19.40% 2,413,952 18.46%
Income tax expenses 626,685 4.56% 550,171 4.21%
Profit for the year 2,037,111 14.83% 1,863,781 14.25%

The percentage indicate the how big the influence of account in Income Statement to Revenue.
 Financial Ratios Analysis
LIQUIDITY RATIO
1. Current Ratio
It is used to measure the ability of an enterprise to meet its current liabilities out of current assets.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
Formula :𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

6,986,737
Current ratio 2014 = 3,285,493 = 2.12

7,074,313
Current ratio 2015 = 3,909,131 = 1.81

In 2014 the current ratio is 2.12, it means every Rp 1,- of current liability can insurable by Rp 2.12,-
of current assets. In 2015 the current ratio is 1.81, it means every Rp 1,- of current liability can
insurable by Rp 1.81,- of current assets.
It means that the company have ability to pay short term liabilities because the current ratio is more
than 1.

2. Quick Ratio / Acid Test

It is a liquidity ratio that measures the ability of a company to pay its current liabilities when they
come due with only quick assets. Quick assets are current assets that can be converted to cash in the
short term.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡−𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
Formula :
𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

6,986,737−938,518
Quick ratio 2014 = 3,285,493
= 1.84
7,074,313−1,142,008
Quick ratio 2015 = 3,909,131
= 1.52

The quick ratio at 2014 and 2015 are 1.84 and 1.52, this means the company can pay off all of his
current liabilities with quick assets and still have the quick assets left over.

3. Account Receivable Turnover

It measures how many times the account receivable changed into cash in a year.

𝑛𝑒𝑡 𝑐𝑟𝑒𝑑𝑖𝑡 𝑠𝑎𝑙𝑒𝑠

Formula :𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑎𝑐𝑐𝑜𝑢𝑛𝑡 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
 11,917,404
Account receivable turnover 2014 = (1,325,602+1,408,669)/2 = 8.72

12,661,253
Account receivable turnover 2015 = (1,408,669+1,493,487)/2 = 8.73

At 2014 and 2015, Account receivable turnover is 8.7, this means the company collects the
receivables about 8,7 times a year.

4. Average Collection Period

Day average credit sales are determined by dividing net credit sales with 365 days.

365
Formula :
𝑎𝑐𝑐𝑜𝑢𝑛𝑡 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟

365
Average collection period 2014 = 8.72 = 42

365
Average collection period 2015 = 8.73 = 42

At 2014 and 2015, average collection period is 42, this means the company collects the receivables
once every 42 days. In other words, when the company makes a credit sale, it will take him 42 days
to collect the cash from that sale.

5. Inventory Turnover
It is a measure of the number of time inventory is sold or used in a time period such as a year.

𝑐𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑

Formula :𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

8,216,130
Inventory turnover 2014 = (871,829+938,518)/2 = 9.08

8,625,648
Inventory turnover 2015 = (938,518+1,142,008)/2 = 8.30

The inventory turnover at 2014 is 9.08, this means the company sold 9 times of its inventory during
the year. And at 2015, the inventory turnover is 8.3, this means the company sold 8 times of its
inventory during the year.
ACTIVITY

6. Total Assets Turnover

Is the ratio of the value of a company’s sales or revenues generated relative to the value of its assets.

𝑛𝑒𝑡 𝑠𝑎𝑙𝑒𝑠
Formula :𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠

11,917,404
Total assets turnover 2014 = (11,209,072+14,039,469)/2 = 0.94

12,661,253
Total assets turnover 2015 = = 0.86
(14,039,469+15,275,759)/2

In 2014 the total assets turnover of PT Bukit Asam is 0.94 and the total assest of PT Adro is 0.50. It
means PT Bukit Asam has a quick assets turnover than PT Adro.And it also happen in 2015,PT
Bukit Asam has 0.86 and PT Adro 0.43

7. Fixed Assets Turnover

Is the ratio that used to measure all assets turnover’s company and measure the value of sales earned.
𝑠𝑎𝑙𝑒𝑠
Formula :
𝑛𝑒𝑡 𝑝𝑙𝑎𝑛𝑡 𝑎𝑛𝑑 𝑒𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡

11,917,404
Fixed assets turnover 2014 = = 3.56
3,349,985

12,661,253
Fixed assets turnover 2015 = 4,268,702
= 2.97

It shows the company has decreasing the ratio from 2014 to 2015. The average of fixed assets
turnover is 3 times, it means that the company has been able to maximize the assets.

LEVERAGE
Laverage is any one of several financial measurement that look at how much capital comes in the
form of debt (loans), or assesses the ability of a company to meet financial obligation and also company’s
ability to meet its long-term obligations as they became due.
1. Debt Ratio
Debt Ratio is defined as the ratio of total long-term and short-term debt to total assets, expressed as a
decimal or percentage, it can be interpreted as the proportion of a company’s assets that are financed
by debt.
𝑇𝑜𝑡𝑎𝑙𝐷𝑒𝑏𝑡
Formula :𝑇𝑜𝑡𝑎𝑙𝐴𝑠𝑠𝑒𝑡𝑠
 5,801,192
2014 = 14,039,469
= 0.413
6,264,163
2015 = 15,275,759= 0.410

Based on the data above it concludes that the amount of Debt increase around 8% while assets increase
around 9% . It means that the company already adjust the using of assets to be the debt.On 2015 PT Bukit
Asam has 0.41 debt ratio and PT Adro 0.43 it means that PT Adro is better than PT Bukit Asam to financed
they company by debt

2. Times interest earned

Times interest earning is a measurement of a company’s ability to meet its debt payment.
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒 𝑜𝑟 𝐸𝐵𝐼𝑇
Formula : 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒
2,317,021
2014 = 48,701
= 47.5
2,741,753
2015 = 157,325
= 17.4

The time interest earning is decrease from 47.5 to 17.4 it decrease around 18%. So the company able to
honor its debt payments by increasing the interest expense. PT Bukit Asam have 17.4 time interest earned on
2015 while PT Adro has 1.96 it means PT Bukit asam is better than Adro in pay debt .

PROFITABILITY
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑖𝑛𝑐𝑜𝑚𝑒
1. Operating income on investment =
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
2,049,424
2014 =

2,414,340
2015 =

2. Operating profit margin

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
Formula : 𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
1,851,330
2014 = 11,917,404 = 0.15
1,881,202
2015 = 12,661,253 = 0.14

The profit margin of this company decrease in net sales.

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
3. Total assets turnover =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
1,851,330 1,851,330
2014 = = = 0.15
(11,209,072+14,039,469)/2 12,624,270.5
 1,881,202 1,881,202
2015 = (14,039,469+15,275,759)/2 = 14,657,614 = 0.14

Deteriorated, and conclude that the company has decreasing in efficiency and effectiveness in using the total
assets to generate sales.
𝑁𝑒𝑡 𝑐𝑟𝑒𝑑𝑖𝑡 𝑠𝑎𝑙𝑒𝑠
4. Account Receivable turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑎𝑐𝑐𝑜𝑢𝑛𝑡 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒

2014 =

5. Inventory
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑
Inventory Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
8,216,130 8,216,130
2014 = = = 9.08
(871,829+938,518)/2 905,173.5

8,625,648 8,625,648
2015 = (938,518+1,142,008)/2 = 1,040,263 = 8.30
365
Average age of inventory = 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟
365
2014 = = 40.1
9.08
365
2015 = 8.30 = 43.9
The turnover of inventory on 2014 to 2015 decrease.When 2014 the age of inventory is shorter than 2015.
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
6. Fixed Asset Turnover =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
11,917,404 11,917,404
2014 = (11,209,072+14,039,469)/2 = 12,624,270.5 = 0.94
12,661,253 12,661,253
2015 = = = 0.86
(14,039,469+15,275,759)/2 14,657,614

Ratio 2014 2015 Evaluation or Trend

Current Ratio 2.12 1.81 Deteriorated
Quick Ratio 1.84 1.52 Deteriorated
Accounts Receivable Turnover 8.72 8.73
Average Collection Period 42 42
Inventory Turnover 9.08 8.30 Deteriorated
Debt Ratio
Times Interest Earned
Total Asset Turnover
Fixed Asset Turnover
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Operating Return on Assets (OROA)
Operating Return on Assets
Return on Equity
Price Earnings Ratio