Analysis Financial Report Harmuliyah (46110034)

Harmuliyah

46110034

3b d-4

FINANCIAL STATEMENT ANALYSIS
Cash Flow Analysis : Cash Flow Adequacy Ratio (CFAR)

What is financial statement?

            Financial statement is a report that presents the overall condition of the financial at the company, about the activities of investing, financing, and operations.

What is financial statement analysis??

            Financial statement analysis is a method that can be used in the financial statements users explore information about the company.

Why the company need the Financial Statements Analysis??

To find information about :

1. Liquidity Analysis
2. Profitability Analysis
3. Solvability Analysis
4. Cash Flow Analysis

            a. Bankcruptcy Analysis

b. Risk analysis
c. Investment analysis

Method of Financial Statements Analysis..

•          Horizontal Analysis

•          Vertical Analysis

•          Common-Size Statements

•          Trend Percentages

•          Ratio Analysis

Who need the information of Financial Statements Analysis?

1.     Investor
2. employee
3. lenders
4. Suppliers and other creditors
5. customers
6. government
7. Community

What is Cash Flow Adequacy Ratio (CFAR)???

Cash flow adequacy ratio (CFAR) is analytical technique that measures how much cash provided by operating activities to meet the capital needs of the companies that include capital expenditures, inventory, and cash dividends. The greater the value of this ratio, the better for the company.

Purpose Cash Flow Adequacy Ratio

            To find out how its ability to meet integrity  capital of the company about capital expenditures, investments in inventory, and cash dividends.

To calculate the cash flow adequacy ratio (CFAR) can use the formula :

Tahun	Arus Kas Operasi (Rp juta)	Pengeluaran Modal * (Rp juta)	Penambahan Persediaan (Rp juta)	Pembayaran dividen tunai (Rp juta)	RKAK
2008	4.253.895	5.030.481		767.412
2009	5.101.022	3.152.732	0	1.175.289	0,92

Interpretation

The above table shows that during the period 2008 to 2009, PT United Tractors and Subsidiaries able to generate operating cash flow by 92% to cover the cash needs of the company, such as capital expenditures, inventory additions, and cash dividend payments. This indicates that the company's financial performance is good enough to ensure the sustainability of the company's operations.

Conclution

            Cash Flow Adequacy Ratio is part of the cash flow analysis, which is used to find out more about the company's ability to meet the capital needs of the company, and the company's efforts to follow up the results of the conclusions.