ANALYSIS FINANCIAL REPORT ARMAN S. (46110050)

FINANCIAL STATEMENT ANALYSIS
(SOLVENCY )

FINANCIAL STATEMENT ANALYSIS

Consist of 2 words, which is analysis and financial report.

Analysis is solving or explaining the report into small unit, meanwhile financial report is consist off balance sheet, income statement, and the cash flow

Financial statement analysis is explaining the step of  financial report and see the related which is significant or have a meaning each site between quantity data and qualitatif  data in purpose to know the financial condition of the company which is important in other to make the decision

METHOD ANALYSIS OF FINANCIAL STATEMENTS

1.      1.LIQUIDITY

2.      SOLVENCY

3.      PROFITABILITY

4.      CASH FLOW ANALYSIS

5.      RISK ANALYSIS

6.      ANALYSIS OF BANKRUPTCY

SOLVENCY ANALYSIS

Solvability is the ability  of the company to fulfill all of the company liabilities. Solvability can show the  company ability  to covering all of company debt which is exist and use all of the asset that the company have

RATIO:

1.      financial leverage ratio

2.      total debt to total capital ratio

3.      total debt to equity capital ratio

4.      long-term debt to equity capital ratio

5.      short-term debt to total debt ratio

6.      common-size analysis

WHAT IS LONG -TERM  DEBT

Long term debt is the company debt toward another sector that have a periode of time more than one years.

LONG-TERM DEBT TO EQUITY CAPITAL RATIO

The ratio of long-term debt to equity capital ratio shows the composition of long-term debt financing to equity financing

Formula:

                          Long-term Debt

                          Total equity

EXAMPLE

PT ARMANDO PROMOTION
BALANCE SHEET
31-Dec-12
Asset			Liabilities and Capital
Current Asset			Liabilities
Cash	80,000,000.00		Curren Liabilities
Account Receipayble	50,000,000.00		Accouny Payable	20,000,000.00
Supplies	60,000,000.00		Salaries payable	10,000,000.00
Total Curren Asset		190,000,000.00	Total Curren Liabilties		30,000,000.00
Fixed Asset
Equiptmen	40,000,000.00		Long-term Liabilities
accumulated depr. Equiptmen	-               10,000,000.00		Bank Permana Dika	70,000,000.00	70,000,000.00
Total Fixed Asset		30,000,000.00	Total Liabilities		100,000,000.00
			Equity
			arman s Capital	120,000,000.00
			Total Equity		120,000,000.00
Total Asset		220,000,000.00	Total Liabilties and capital		220,000,000.00
				Mengatahui
				Makassar 31 /12/2012
				ARMAN S
				Direktur
Calcululate RHJPE:
2012	long term Liabilities	70,000,000.00
	Total equity	120,000,000.00

                             RHJPE:  0,58

CONCLUSION:

Based on the example, the formulation indicate that in the 2012, PT. Armando promotion  potentially solvable because the funding of long term debt less than funding of equity