ANALYSIS FINANCIAL REPORT ULFAH RIZKY M. (46110031)

CASH RETURN ON ASSETS RATIO

 

 

ULFAH RIZKY .M

46110031

3B D4

POLITEKNIK NEGERI UJUNG PANDANG

·         Definition of financial report analysis

Financial report analysis  is the process of evaluating business, projects, budgets, and other finance that related entities to determine their suitability for investment. Typically financial analysis used to analyze whether or not the entity of the company is stable, solvent, liquid or profitable enough to be invested in.

·         Definition of cash flow statement

Financial report that records amount of cash and cash equivalent which is entering into company and leaving company.

·         The structure of cash flow statement

1.       Cash flow from operating activity

2.       Cash flow from investing activity

3.       Cash flow from financing activity

·         Advantages of cash flow statement

1.       Provide information on a company’s liquidity and solvability and the ability to change cash flow in the future condition.

2.       The  shareholders can know where is cash and cash equivalent coming from and how it spend.

·         Analysis method of cash flow statement

1.       Cash return on current liabilities ratio

2.       Current returm on total liabilities ratio

3.       Current return on total assets ratio

·         Current return on total asset ratio

Cash Return on Total Assets Ratio (CROTA) is  ratio that we use for  measuring how much cash flow operation which is result by company for funding all the company’s assets, whether it’s current assets or non-current assets.

·         Formula :

CROTA = NetCashFlowFromOperationActivity

                                                Total Assets

·         Example :

                               

                                PT. URM,TBK

YEAR	CASHFLOW FROM OPERATING ACTIVITY	TOTAL ASSETS
2010	4.289.332	27.251.281
2011	4.307.783	28.413.561

     Conclusion

Based on analysis, it shows us that in 2010 PT URM, Tbk able to provide cash flow from operating activity about 16 % to covering total of assets, while in 2011, company able to provide cash flow from operating activity about 15 % to covering total of assets.  It means that solvability of the company decrease about 1% from last year.