Alfaega Rantepadang ( 3A-D4 )

Name : Alfaega Rantepadang

Class   : 3A/D4

A.     DEFINITION OF FINANCIAL STATEMENT ANALYSIS

Financial statement analysis using financial statements to analyze a company's financial position and performance, and to assess the financial performance of the company in the future.

B.      THE SCOPE OF FINANCIAL STATEMENT ANALYSIS

v  Liquidity analysis

v  Solvency analysis

v  Profitability analysis

v  Analysis of cash flows

v  Analysis bankruptcy prediction

v  Risk analysis

v  Investment analysis

1.      Analysis of Cash Flow

Cash Flow Ratio Analysis in the company :

Ø  The ratio of operating cash flow to current liabilities

The ratio of operating cash flow to current liabilities is used to measure a company's financial liquidity. Specially  this ratio measures how much cash provided by  operating activities  to cover the current liabilities of the company.

Ø  The ratio of operating cash flow to total liabilities

The ratio of operating cash flow to total liabilities is used to measure a company's financial solvency.  Specially  this ratio measures how much cash provided by  operating activities  to cover the total liabilities of the company.

Ø  The ratio of operating cash flow to total assets

The ratio of operating cash flow to total assets is used to measure a company's financial solvency. In particular, this ratio measures how much cash provided by  operating activities  to finance all of assets of the company, both current assets and non current assets

Ø  Cash re-investment ratio

Cash reinvestment ratio (CRR) is used to  measures how much of the investment in assets that describes the operating cash flow retained and reinvested in the company to replace the assets and  supporting the operation growth  in the company.

Ø  Cash flow adequacy ratio (CFAR)

An analytical technique that measures how much cash provided by operating activities to meet the capital needs of companies that include capital expenditures, investments in inventory, and cash dividends payments.

Formula For Cash Flow Adequacy Ratio

 

 

Case Study : 

Financial Statement of PT Sorini Agro Asia Corporindo Tbk

 

 CONCLUSION :

       During the period 2011 to 2012, PT Sorini Agro Asia Corporindo Tbk and Subsidiaries able to generate operating cash flow by 13 % to the cash needs of the company, such as capital expenditures, investments in inventory, and cash dividend payments. This indicates that the company's financial performance is good enough to ensure the sustainability of the company's operations.