Financial Report Analysis ANDIKA F.R. (46110016)

 

ANDIKA FAIZAL REZKY

3BD4

46110010

DEVIDEND PAYOUT RATIO

1. General Explanation of Financial Report Analysis

Financial analysis used to assess business continuity, stability, profitability of a business and project. Financial analysis done by a professional who presents the report in the form of ratios that use information as presented in the financial statements. These reports are usually presented to top management of a business as a reference to taking a company policy.

Based on this analysis, the management may decide various management decisions such as:

ž  Proceed or not the operations of a business or part of a business.

ž  Undertake the manufacture or purchase of raw materials in the production process

ž  Make a purchase or lease production machinery

ž  Issuing stocks or negotiate for a bank loan to increase its working capital.

ž  Other decisions that allow management did the right choice for a variety of alternatives that exist in managing the company.

The purpose of financial analysis:

Financial analysis often judge a business based on:

ž  Profitability

ž  Solvency

ž  Liquidity

ž  Stability

2. Financial statements

Understanding financial statements is the end result of the accounting process that provide financial information about a company to the interested parties for consideration in financial decision making.

General terms, the financial statements consist of:

1. Income Statement is a report showing the results that have been obtained as well as the costs - costs incurred by a company during the accounting period .
 2. Statement of Changes in Capital or Retained Earnings reports are reports that show changes in equity 1 accounting period.
3. Balance sheet is a systematic report on the financial condition of the company (assets, liabilities and equity) at a certain date.
 4. Cash Flow Statement is a report showing the sources and uses of funds during the first accounting period.
 5. Notes to the Financial Statements of the report presents a description - a description of the policy - the policy of the company.

3. PROFITABILITY ANALYSIS

Profitability analysis is a component of enterprise resource planning (ERP) that allows administrators to forecast the profitability of a proposal or optimize the profitability of an existing project. Profitability analysis can anticipate sales and profit potential specific to aspects of the market such as customer age groups, geographic regions, or product types.

Profitability ratios can be measured by several indicators:

ž  Profit Margin

ž  ROA (Return on Asset)

ž  ROE (Return On Equity)

ž  ROI (Return on Investment)

ž  EPS (Earning Per Share)

ž  DPR (Devidend Payout Ratio)

Dividend Payout Ratio (DPR) :

Dividend payout ratio is the ratio of dividend per share  by earnings per share. It is a measure of how much earnings a company is paying out to its shareholders as compared to how much it is retaining for reinvestment.

A shareholder has two sources of return, namely periodic income in the form of dividends and capital appreciation. Dividend payout ratio tells what percentage of total earnings the company is paying back to shareholders. A healthy dividend payout ratio leads to investor confidence in the company.

The percentage of earnings paid to shareholders in dividends.

Calculated as:
 

 

PT.COWELL DEVELOPMENT

2009 = 1.350.332.861

          13.691.009.424

= 9.8%

2010 = 2.051.902.448

           8.400.943.653

= 24.42%

2009         2010 =  9.8%       24.42%

Interpretation of: from the analysis above can be drawn a conclusion that, PT Cowell increase the amount to payment dividend to shareholders, it is done because in general investors are attracted to companies that have a high dividend payout. It can be seen from the increase of the year 2009 - 2010 was 9.8% -> 24.42% of the net profit of the company. Usually the rapid development companies prefer to reinvest in the company's activities than do dividend payments to investors in the hope of the future agreement will benefit all parties