Analysis Of Financial Ratios Of PT. Toba Bara Sejahtera Tbk Peride 2017 - 2019

by ADMIN 79 views

Introduction

In today's competitive business world, companies are required to achieve optimal and sustainable results. One way to measure company performance is to analyze its financial ratios. This article will discuss the analysis of the financial ratio of PT. Toba Bara Sejahtera Tbk (TOBA) for the 2017-2019 period, a company engaged in coal mining. PT. Toba is a well-established company in the coal mining industry, and its financial performance is a crucial aspect of its success.

Analysis of the Financial Ratio of PT. Toba Bara Sejahtera Tbk (Toba)

Financial ratio analysis allows us to understand company performance from various aspects. Here are some important ratios analyzed from the financial statements of PT. Toba:

1. Liquidity Ratio

The liquidity ratio measures the company's ability to pay off its short-term obligations. Here are some of the liquidity ratios analyzed from the financial statements of PT. Toba:

Current Ratio

The current ratio shows the company's ability to pay off current obligations with current assets. Ratio of Current PT. Toba is above 1 during the 2017-2019 period, shows the company's ability to meet short-term obligations. This indicates that PT. Toba has sufficient liquid assets to cover its short-term liabilities.

Quick Ratio

The quick ratio measures the company's ability to pay off short-term obligations with more liquid current assets. Quick Ratio PT. Toba is also above 1, indicating good liquidity. This shows that PT. Toba has a strong ability to meet its short-term obligations.

2. Solvency Ratio

The solvency ratio shows the company's ability to pay off all obligations, both short and long term. The following are some of the solvency ratios analyzed from the financial statements of PT. Toba:

Debt to Equity Ratio

The debt to equity ratio shows the proportion of funding from debt to equity. This ratio shows that PT. Toba relies more on equity than debt in funding its business. This shows that the company has a healthy financial structure.

Times Interest Earned Ratio

The times interest earned ratio shows the company's ability to pay interest on debt. This ratio shows that PT. Toba is able to pay interest on debt freely. This indicates that PT. Toba has a strong ability to meet its interest payments.

3. Profitability Ratio

The profitability ratio measures the company's ability to generate profits. The following are some profitability ratios analyzed from the financial statements of PT. Toba:

Gross Profit Margin

The gross profit margin demonstrates the percentage of profits derived from sales after deducting the cost of goods sold. Gross Profit Ratio PT. Toba shows good profitability from sales. This indicates that PT. Toba has a strong ability to generate profits from its sales.

Net Profit Margin

The net profit margin shows the percentage of net profit after deducting all costs. This ratio shows that PT. Toba managed to maintain a fairly high net profitability. This indicates that PT. Toba has a strong ability to generate net profits.

4. Activity Ratio

The activity ratio measures the company's efficiency in using its assets. The following are some of the ratios of activities analyzed from the financial statements of PT. Toba:

Inventory Turnover Ratio

The inventory turnover ratio shows the speed of inventory turnover. This ratio shows that PT. Toba is able to manage inventory efficiently. This indicates that PT. Toba has a strong ability to manage its inventory.

Total Asset Turnover

The total asset turnover shows the company's efficiency in generating income from its assets. This ratio shows that PT. Toba is able to use its assets well in generating income. This indicates that PT. Toba has a strong ability to generate income from its assets.

CONCLUSIONS AND RECOMMENDATIONS

Based on the analysis of the financial ratio of PT. Toba for the 2017-2019 period, it can be concluded that the company has a healthy and strong financial performance. PT. Toba has good liquidity, healthy financial structure, and high profitability. The company is also able to manage its assets efficiently.

Recommendation:

Maintain a healthy financial strategy

PT. Toba must continue to maintain a healthy financial structure by managing debt wisely and maintaining adequate liquidity ratios.

Improve operational efficiency

PT. Toba can increase operational efficiency by optimizing the use of assets and managing inventory more effectively.

Stay focused on profitability

PT. Toba must continue to focus on profitability by maintaining good profit margin.

Conclusion

Analysis of financial ratios can provide a comprehensive picture of the financial performance of PT. Toba. By understanding these important ratios, investors and stakeholders can better assess company performance. PT. Toba has positive financial performance and can continue to develop in the future.

Limitations of the Study

This study has some limitations. Firstly, the analysis is based on historical data, which may not reflect the current financial performance of PT. Toba. Secondly, the analysis is limited to the financial ratios analyzed in this study, and other important ratios may not be included.

Future Research Directions

Future research can build on this study by analyzing other important ratios, such as the return on equity (ROE) and return on assets (ROA) ratios. Additionally, future research can analyze the impact of external factors, such as changes in government policies and market trends, on the financial performance of PT. Toba.

References

  • PT. Toba Bara Sejahtera Tbk. (2017-2019). Annual Reports.
  • Financial Accounting Standards Board (FASB). (2019). Accounting Standards Codification (ASC).
  • International Accounting Standards Board (IASB). (2019). International Financial Reporting Standards (IFRS).

Note: The references provided are for illustrative purposes only and may not be actual references used in the study.

Introduction

In our previous article, we analyzed the financial ratios of PT. Toba Bara Sejahtera Tbk (TOBA) for the 2017-2019 period. In this article, we will answer some frequently asked questions (FAQs) related to the analysis of financial ratios of PT. Toba.

Q&A

Q1: What is the purpose of analyzing financial ratios?

A1: The purpose of analyzing financial ratios is to understand a company's financial performance from various aspects, such as liquidity, solvency, profitability, and activity.

Q2: What are the key financial ratios analyzed in this study?

A2: The key financial ratios analyzed in this study include liquidity ratios (current ratio and quick ratio), solvency ratios (debt to equity ratio and times interest earned ratio), profitability ratios (gross profit margin and net profit margin), and activity ratios (inventory turnover ratio and total asset turnover).

Q3: What is the significance of the current ratio and quick ratio?

A3: The current ratio and quick ratio are important liquidity ratios that measure a company's ability to pay off its short-term obligations. A current ratio above 1 indicates that a company has sufficient liquid assets to cover its short-term liabilities.

Q4: What is the significance of the debt to equity ratio?

A4: The debt to equity ratio is an important solvency ratio that measures a company's ability to pay off its long-term obligations. A debt to equity ratio below 1 indicates that a company relies more on equity than debt in funding its business.

Q5: What is the significance of the gross profit margin and net profit margin?

A5: The gross profit margin and net profit margin are important profitability ratios that measure a company's ability to generate profits from its sales. A high gross profit margin and net profit margin indicate that a company is able to generate significant profits from its sales.

Q6: What is the significance of the inventory turnover ratio and total asset turnover?

A6: The inventory turnover ratio and total asset turnover are important activity ratios that measure a company's efficiency in using its assets. A high inventory turnover ratio and total asset turnover indicate that a company is able to manage its inventory and assets efficiently.

Q7: What are the limitations of this study?

A7: The limitations of this study include the use of historical data, which may not reflect the current financial performance of PT. Toba, and the analysis of only a few financial ratios.

Q8: What are the future research directions?

A8: Future research directions include analyzing other important financial ratios, such as the return on equity (ROE) and return on assets (ROA) ratios, and analyzing the impact of external factors, such as changes in government policies and market trends, on the financial performance of PT. Toba.

Conclusion

In conclusion, the analysis of financial ratios of PT. Toba Bara Sejahtera Tbk (TOBA) for the 2017-2019 period provides valuable insights into the company's financial performance. The key financial ratios analyzed in this study include liquidity ratios, solvency ratios, profitability ratios, and activity ratios. The study highlights the importance of analyzing financial ratios to understand a company's financial performance and make informed investment decisions.

References

  • PT. Toba Bara Sejahtera Tbk. (2017-2019). Annual Reports.
  • Financial Accounting Standards Board (FASB). (2019). Accounting Standards Codification (ASC).
  • International Accounting Standards Board (IASB). (2019). International Financial Reporting Standards (IFRS).

Note: The references provided are for illustrative purposes only and may not be actual references used in the study.