UNIVERSITAS PELITA HARAPANPROGRAM STUDI MAGISTER MANAJAMEN

Nama Kelompok : Ani Mintjeriana, Gillberth Lawalata, Hardy, Yonathan EricTugas Kelompok : FINANCIAL MANAGEMENTDosen Pengampu : Bpk. Tamiden Sitorus, Ir, MSc, PhD

Chapter 3 Mini Case

The first part of the case, presented in Chapter 2, discussed Computron Industries’ situation after an expansion program. A large loss occurred in 2010, rather than the expected profit. As a result, its managers, directors, and investors are concerned about the firm’s survival.

Donna Jamison was brought in as an assistant to Fred Campo, Computron's chairman, who had the task of getting the company back into a sound financial position.Computron's 2009 and 2010 balance sheets and income statements, together with projections for 2011, are shown in the following tables. Also, the tables show the 2009 and 2010 financial ratios along with industry average data. The 2011 projected financial statement data represent Jamison's and Campo's best guess for 2011 results, assuming that some new financing is arranged to get the company "over the hump."

Input Data:2009 2010 2011

Year-end common stock price $8.50 $6.00 $12.17 Year-end shares outstanding 100,000 100,000 250,000Tax rate 40% 40% 40%Lease payments $40,000 $40,000 $40,000

Balance Sheets                              Assets     2009 2010 2011Cash and equivalents   $9,000 $7,282 $14,000Short-term investments   $48,600 $20,000 $71,632Accounts receivable   $351,200 $632,160 $878,000Inventories     $715,200 $1,287,360 $1,716,480Total current assets   $1,124,000 $1,946,802 $2,680,112Gross Fixed Assets   $491,000 $1,202,950 $1,220,000Less Accumulated Dep.   $146,200 $263,160 $383,160Net Fixed Assets   $344,800 $939,790 $836,840Total Assets     $1,468,800 $2,886,592 $3,516,952           Liabilities and equity        Accounts payable   $145,600 $324,000 $359,800Notes payable   $200,000 $720,000 $300,000Accruals     $136,000 $284,960 $380,000Total current liabilities   $481,600 $1,328,960 $1,039,800Long-term bonds   $323,432 $1,000,000 $500,000Total liabilities   $805,032 $2,328,960 $1,539,800

Common stock (100,000 shares) $460,000 $460,000 $1,680,936Retained earnings   $203,768 $97,632 $296,216Total common equity   $663,768 $557,632 $1,977,152Total liabilities and equity   $1,468,800 $2,886,592 $3,516,952

Income Statements                         2009 2010 2011Net sales     $3,432,000 $5,834,400 $7,035,600Costs of Goods Sold   $2,864,000 $4,980,000 $5,800,000Other Expenses   $340,000 $720,000 $612,960Depreciation     $18,900 $116,960 $120,000Total Operating Cost   $3,222,900 $5,816,960 $6,532,960Earnings before interest and taxes (EBIT) $209,100 $17,440 $502,640Less interest     $62,500 $176,000 $80,000Earnings before taxes (EBT)   $146,600 ($158,560) $422,640Taxes (40%)     $58,640 ($63,424) $169,056Net Income before preferred dividends $87,960 ($95,136) $253,584EPS     $0.880 ($0.951) $1.014 DPS     $0.220 $0.110 $0.220 Book Value Per Share   $6.638 $5.576 $7.909            

Jamison must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions should be taken. Your assignment is to help her answer the following questions. Provide clear explanations, not yes or no answers.

Questian: A. Why are ratios useful? What are the five major categories of ratios?

Analisis rasio sangat berguna bagi sebuah perusahaan, karena analisis rasio dapat membantu

menganalisis keuangan sebuah perusahaan. Secara khusus, analisis rasio dapat digunakan

untuk membandingkan sebuah perusahaan dari waktu ke waktu atau membandingkan sebuah

perusahaan dengan perusahaan yang lain. Analisis rasio juga dapat digunakan oleh manajer

untuk membantu meningkatkan kinerja perusahaan dan juga untuk mengidentifikasi area

kelemahan dan kekuatan dari sebuah perusahaan tertentu, oleh pemberi pinjaman untuk

membantu mengevaluasi kemungkinan perusahaan membayar kembali hutang, bahkan juga

oleh pemegang saham untuk membantu memprediksi laba masa depan dan dividen dari

perusahaan tertentu.

Lima kategori utama dari rasio adalah:

1. Liquidity

2. Asset management

3. Debt management

4. Profitability

5. Market value

B. (1) Calculate the current and quick ratios based on the projected balance sheet

and income statement data.

Current Ratio (CR) = Current Assets (CA) / Current Lialibities (CL)

Quick Ratio (QR) = (Current Assets – Inventories) / Current Liabilities (CL)

2009 2010 2011 Industry

Current

Ratio

$1,124,000/$481,600 = $2,33

$1,946,802/$1,328,960= $1,46

$2,680,112/$1,039,800= $2,58

2,7

Quick

Ratio

($1,124,000-$715,200)/$481,600= 0,8

$1,946,802-$1,287,360)/$1,328,960 = 0,5

($2,680,112-$1,716,480)/$1,039,800 = 0,93

1,0

(2.) What can you say about the company's liquidity position? We often think of ratios

as being useful (1) to managers to help run the business, (2) to bankers for credit

analysis, and (3) to stockholders for stock valuation. Would these different types of

analysts have an equal interest in the liquidity ratios?

Berdasarkan hasil Current Rasio dan Quick Rasio, maka dapat dilihat bahwa perusahaan

Computron mengalami penurunan liquidity yang sangat signifikan dari tahun 2010. Pada

tahun 2011, liquidity perusahaan mulai meningkat, namun sayangnya masih berada di bawah

rata-rata industri.

C. Calculate the inventory turnover, days sales outstanding (DSO), fixed assets

turnover, operating capital requirement, and total assets turnover. How does

Computron's utilization of assets stack up against other firms in its industry?

Inventory. Turnover Ratio = Sales / Inventories

2009 2010 2011 Industry

Inv.

Turnover

$3,432,000/$715,2 $5,834,400/$1,287,360 $7,035,600/$1,716,480 6,1

Ratio 00 = 4,8 = 4,5 = 4,1

Days Sales Outstanding (DSO) = Receivables / (Average Sales/365)

2009 2010 2011 Industry

DSO $351,200/

($3,432,000/365) =

37.4

$632,160/

($5,834,400/365) =

39,5

$878,000/

($7,035,600/365) =

45,5

32,0

Fixed Assets Turnover = Sales / Net Fixed Assets

2009 2010 2011 Industry

FA TO $3,432,000/$344,800

= 10,0

$5,834,400/$939,790

= 6,2

$7,035,600/$836,840

= 8,5

7

Total Assets Turnover = Sales / Total Assets

2009 2010 2011 Industry

TA TO $3,432,000/$1,468,8

00 = 2,3

$5,834,400/$2,886,592

= 2,0

$7,035,600/$3,516,952

= 2,0

2,5

Berdasarkan data di atas, menurut kelompok pada tahun 2009-2011, inventory

turnover dan total assets perusahaan mengalami penurunan, sementara Days sales outstanding

(DSO) dalam 3 tahun terakhir meningkat. Fixed assets juga mengalami peningkatan dalam

kurun waktu 3 tahun terakhir ini.

Meskipun demikian, inventory turnover dan total assets berada di bawah rata-rata

industri. Sedangkan hari penjualan (DSO) perusahaan juga berada di bawah rata-rata industri.

Fix assets pada tahun 2009-2010 juga berada di bawah rata-rata industri, namun kembali

meningkat pada tahun 2011 dan berada di atas industri. Menurut analisa kelompok,

perusahaan Computron mengalami ketidakseimbangan. Ketidakseimbangan yang terjadi,

mungkin disebabkan oleh beberapa faktor, seperti; (1) Fakta bahwa Computron merupakan

perusahaan yang lebih tua daripada kebanyakan perusahaan lain, (2) Computron memiliki

nilai jual yang rendah, sehingga fixed assets perusahan berada di bawah rata-rata industri

pada tahun 2009-2010, (3) Perusahaan terlalu banyak menumpuk barang industri, sehingga

total assets perusahaan mengalami penurunan secara drastis bahkan berada di bawah rata-rata

industri.

D. Calculate the debt, times-interest-earned, and EBITDA coverage ratios. How

does Computron compare with the industry with respect to financial leverage?

What can you conclude from these ratios?

Debt Ratio = Total Liabilities / Total Assets

2009 2010 2011 Industry

Debt $805,032/$1,468,800

= 54, 8 %

$2,328,960/$2,886,592

= 80,7 %

$1,539,800/$3,516,9

52 = 43,8%

50,00%

Times-Interest Earned Ratio (TIE) = EBITDA / Interest Expense

2009 2010 2011 Industry

TIE $209,100/$62,500

= 3,3

$17,440/$176,000

= 0,1

$502,640/$800,00

= 6,3

6,2

EBITDA Coverage (EC) = (EBIT+Depr. & Amort+Lease payment) / (Interest+lease+loan)

2009 2010 2011 Industry

EBITDA ($209,100+

$18,900)/

($62,500+

$40,000+$0) =

2,6

($17,440+

$116,960)/

($176,000+$40,000+

$0) = 0,8

($502,640+

$120,000+40,000)/

($80,000+$40,000+$0)

= 5,5

8,0

Berdasarkan data di atas, menurut kelompok, debt ratio

perusahaan tahun 2010 jauh lebih baik dari tahun sebelumnya (2009), akan tetapi masih

berada di bawah rata-rata industri. Pada tahun 2011, TIE dan EBITDA rasio perusahaan

menjadi lebih baik. TIE perusahaan lebih baik karena berada sejajar dengan industri,

sedangkan EBITDA lebih rendah dari industri.

E. Calculate the profit margin, basic earning power (BEP), return on assets (ROA),

and return on equity (ROE). What can you say about these ratios?

Profit Margin

Net Profit Margin (NPM) = Net Income / Sales

2009 2010 2011 Industry

NPM $87,960/$3,432,0

00 = 2,6%

$95,136/$5,834,400 =

-1,6%

$253,584/$7,035,600

= 3,6%

3,6%

Operating Profit Margin (OPM) = EBIT / Sales

2009 2010 2011 Industry

OPM $209,100/$3,432,

000 = 6,1%

$17,440/$5,834,400 =

0,3%

$502,640/$7,035,600

= 7,1%

7,1%

Gross Profit Margin (GPM) = (Sales-COGS) / Sales

2009 2010 2011 Industry

GPM ($3,432,000-

$2,864,000)/

$3,432,000 = 16,6 %

($5,834,400-

$4,980,000)/

5,834,400 = 14,6 %

($7,035,600-

$5,800,000)/

$7,035,600 = 17,6%

15,5%

Basic Earning Power (BEP) = EBIT / Total Assets

2009 2010 2011 Industry

BEP $209,00/$1,468,8

00 = 14,2%

$17,440/ 2,886,592 =

0,6%

$502,640/$3,516,952

= 14,3%

17, 8%

Return on Assets (ROA) = Net Income / Total Assets

2009 2010 2011 Industry

ROA $87,960/$1,468,8

00 = 6,0%

$95,136/ $2,886,592 =

-3,3%

$253,584/$3,516,952

= 7,2%

9,0%

Return on Equity (ROE) = Net Income / Common Equity

2009 2010 2011 Industry

ROE $87,960/$663,76

8 = 12,8%

$95,136/ $557,632 =

17, 1%

$253,584/$1,977,152

= 13,3%

18,0%

Melihat hasil perhitungan di atas, kelompok berpendapat bahwa keuntungan

perusahaan berada di atas 2009 dan 2010. Hal ini disebabkan karena hasil perhitungan di atas

tahun 2009 dan 2010 meningkat, sehingga dapat diasumsikan bahwa pada tahun 2011,

perusahaan banyak mendapat keuntungan.

Profit Margin perusahaan sangat buruk pada tahun 2010, akan tetapi secara

keseluruhan terjadi peningkatan secara signifikan pada tahun 2011. BEP mengalami

penurunan secara signifikan pada tahun 2010, namun meningkat dengan cepat pada tahun

2011, akan tetapi masih berada di bawah rata-rata industri. Hal yang sama juga terjadi pada

ROA yang mengalami penurunan pada tahun 2010 dan masih berada di bawah rata-rata

industri; sedangkan ROE mengalami penurunan pada tahun 2011 dan masih berada di bawah

rata-rata industri.

F. Calculate the price/earnings ratio, price/cash flow ratio, and market/book ratio.

Do these ratios indicate that investors are expected to have a high or low opinion

of the company?

Earn per share (EPS) = Net Income / Shares Outstanding

2009 2010 2011

EPS $87,960/100,000

= $0,88

$95,136/100,000 =

$0,95

$253,584/2500.00 =

$1,01

Price/earning (P/E) = Price per share / EPS

2009 2010 2011 Industry

P/E $12,17/$0,88=

$9,7

$12,17/$0,95= -$6,3 $12,17/$1,01= $12,0 14,2

CF per share = (NI+Depr) / Share Outstanding

2009 2010 2011

CF per ($87,960+ ($95,136+$116,960)/ ($253,584+

share $18,900)/100,000

= $1,07

100,000 = $0,22 $1200.00)/2500.00 =

$1,49

Price/Cash Flow per share = Price per share / CF per share

2009 2010 2011 Industry

P/CF $12,17/$1,07=

$8,0

$12,17/$0,22= $27,5 $12,17/$1,49= $8,2 7,6

Book value per share = Common Equity / Share Outstanding

2009 2010 2011

BVPS $663,768/100,00

0 = $6,64

$557,632/100,000 =

$5,58

$1,977,152/2500.00 =

$7,91

Market based ratio = Market price per share / BVPS

2009 2010 2011 Industry

MBR $12,17/$6,64 =1,3x $12,17/$5,58 = 1,1x $12,17/$7,91= 1,5x 2,9

P/E Ratio dan BVPS mulai meningkat pada tahun 2011, tetapi di

bawah rata-rata industri, sedangkan P/CF mengalam peningkatan bahkan berada di atas

industri. Dari data ini, menurut kelompok investor memiliki pendapat yang lemah, karena

perusahaan Computron mempunyai pasar yang didasakan pada P/E yan lemah di bawah

industri.

G. Perform a common size analysis and percent change analysis. What do these

analyses tell you about Computron?

Common size and percent change analysis in next sheet

1. Analisis dari common size balance sheet

Balance Sheets 2009 2010 2011 Industry                      Assets          Cash and equivalents 0.6% 0.3% 0.4% 0.3%Short-term investments 3.3% 0.7% 2.0% 0.3%Accounts receivable 23.9% 21.9% 25.0% 22.4%Inventories   48.7% 44.6% 48.8% 41.2%Total Current Assets 76.5% 67.4% 76.2% 64.1%

Net Fixed Assets 23.5% 32.6% 23.8% 35.9%Total Assets   100.0% 100.0% 100.0% 100.0%           Liabilities and equity        Accounts payable 9.9% 11.2% 10.2% 11.9%Notes payable 13.6% 24.9% 8.5% 2.4%Accruals   9.3% 9.9% 10.8% 9.5%Total current liabilities 32.8% 46.0% 29.6% 23.7%Long-term bonds 22.0% 34.6% 14.2% 26.3%Total common equity 45.2% 19.3% 56.2% 50.0%Total liabilities and equity 100.0% 100.0% 100.0% 100.0%

Berdasarkan data di atas, kelompok mneyimpulkan bahwa;

Total assets dan inventory dari perusahaan Computron mengalami peningkatan dan berada di

atas industri.

Perusahaan Computron memiliki banyak hutang jangka pendek (current liabilities) dan

memiliki sedikit hutang jangka panjang (long-term bonds).

Perusahaan diprediksikan memiliki banyak ekuitas (total common equity). Hal ini dapat

meminimalisirkan hutang perusahaan (pada tahun 2011).

Income Statements 2009 2010 2011 Industry                      Net sales   100.0% 100.0% 100.0% 100.0%Costs of Goods Sold 83.4% 85.4% 82.4% 84.5%Other Expenses 9.9% 12.3% 8.7% 4.4%Depreciation   0.6% 2.0% 1.7% 4.0%EBIT   6.1% 0.3% 7.1% 7.1%Less interest   1.8% 3.0% 1.1% 1.1%Earnings before taxes (EBT) 4.3% -2.7% 6.0% 5.9%Taxes (40%)   1.7% -1.1% 2.4% 2.4%Net Income before preferred dividends 2.6% -1.6% 3.6% 3.6%

Berdasarkan data di atas, kelompok menyimpulkan bahwa;

Perusahaan Computron lemah dalam COGS (pada tahun 2011) karena berada di

bawah industri.

Karena perusahaan Computron memiliki other expense yang tinggi dari industri,

maka EBIT perusahaan juga terjadi peningkatan.

Percent change analysisBalance Sheets 2009 2010 2011                  Assets        Cash and equivalents 0% -19.1% 55.6%Short-term investments 0% -58.8% 47.4%Accounts receivable 0% 80.0% 150.0%Inventories   0% 80.0% 140.0%Total Current Assets 0% 73.2% 138.4%

Net Fixed Assets 0% 172.6% 142.7%Total Assets   0% 96.5% 139.4%         Liabilities and equity      Accounts payable 0% 122.5% 147.1%Notes payable 0% 260.0% 50.0%Accruals   0% 109.5% 179.4%Total current liabilities 0% 175.9% 115.9%Long-term bonds 0% 209.2% 54.6%Total common equity 0% -16.0% 197.9%Total liabilities and equity 0% 96.5% 139.4%

Income Statements 2009 2010 2011                  Net sales   0% 70.0% 105.0%Costs of Goods Sold 0% 73.9% 102.5%Other Expenses 0% 111.8% 80.3%Depreciation   0% 518.8% 534.9%EBIT   0% -91.7% 140.4%Less interest   0% 181.6% 28.0%Earnings before taxes (EBT) 0% -208.2% 188.3%Taxes (40%)   0% -208.2% 188.3%Net Income before preferred dividends 0% -208.2% 188.3%

Berdasarkan data di atas, kelompok menyimpulkan bahwa:

Terjadi peningkatan net sales (105%) dan net income (188,3%) dari tahun 2009. Hal

ini mengindikasikan bahwa perusahaan memiliki keuntungan karena nilai penjualan

dan pendapatan meningkat. Akan tetapi, peningkatan sales (105%) tetap berada di

bawah total asset (139,4%) yang dapat menjadi masalah dalam pemanfaatan aset

perusahaan.

H. Use the extended Du Pont equation to provide a summary and overview of

Computron's projected financial condition. What are the firm's major strengths

and weaknesses?

Du Pont Equation System

(Profit Margin) (Total Assets Turnover) (Equity Multiplier) = ROE (NI / Sales) x ( Sales / Total Assets) x (Total Assets / Common Equity) = ROE

NI / Common equity (CE) = ROE

Profit Margin(NI / Sales)

Total Assest Turnover

(Sales / Total Assets

Equity Multiplier(Total Assets /

Common equity)

ROE

2009 2,6 % 2,3 % 2,2 % 13,2 %2010 1,6 % 2,0 % 5,2 % -16,6 %2011 3,6 % 2,0 % 1,8 % 13,0%Industry 3,6 % 2,5 % 2,0 % 18,0%

Strength :

Fixed assets turnover perusahaan berada diatas rata-rata industri. Hal ini dapat terjadi apabila asset perusahaan lebih tua dari perusahaan lainnya pada industri tersebut.

Keuntungan perusahaan berada sedikit diatas rata-rata industri, meskipun debt ratio masih lebih tinggi. Hal ini dapat menjadi kesimpulan bahwa perusahaan telah mengurangi biaya, akan tetapi hal ini tetap tergantung dari seberapa kecil depreciation cost-nya.

Weakness : Likuiditas rasio perusahaan rendah, hampir semua asset managemen rasio kurang (kecuali

fixed asset turnover). Debt management ratio juga rendah, hampir semua keuntungan rasio rendah (kecuali profit

margin) dan market value rendah.

I. What are some potential problems and limitations of financial ratio analysis?

Beberapa potensi masalah dalam analisis rasio keuangan: 1. Comparison with industry averages is difficult if the firm operates many different

divisions.

2. Different operating and accounting practices distort comparisons.

3. Sometimes hard to tell if a ratio is “good” or “bad.”

4. Difficult to tell whether company is, on balance, in a strong or weak position.

5. “Average” performance is not necessarily good.

6. Seasonal factors can distort ratios.

7. “Window dressing” techniques can make statements and ratios look better.

J. What are some qualitative factors analysts should consider when evaluating a

company’s likely future financial performance?

Analisis faktor kualitatif sangat dibutuhkan untuk mengevaluasi sebuah perusahaan.

Analisis faktor kualitatif adalah sebagai berikut;

1. Are the company’s revenues tied to one key customer?

2. To what extent are the company’s revenues tied to one key product?

3. To what extent does the company rely on a single supplier?

4. What percentage of the company’s business is generated overseas?

5. Competition

6. Future prospects

7. Legal/ risk and regulatory environment issues