PT KRAKATAU STEEL (PERSERO) Tbk. VALUE IMPROVEMENT THROUGH FINANCIAL STATEMENT BENCHMARKING

• Main Author: TRI BASUKI (NIM : 29110422); Academic Counselor : Ir. Subiakto Sukarno, MBA, BAMBANG
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18138
• Institution: Institut Teknologi Bandung

ABSTRACT <br /> <br /> <br /> <br /> <br /> On November 10th 2010, PTKS launched its initial public offering, named KRAS, with initial price of <br /> <br /> <br /> IDR 850. Besides KRAS, there are another 8 companies who also launched their IPO. From January 2011 to December 2012, KRAS price was continuously declining 46.22%. On the same period, JCI (Jakarta Composite Index) was increased by 15.81%. Declining in share price affected by external factor and internal factor. Internal factor mostly represented by company’s performace via published financial reports. To look into KRAS financial performance, benchmarking method was used to look into financial reports and financial ratios. The figures being benchmarked are Current Ratio, ROE by DuPont Method, Altman Z-Score and Sustainable Growth Rate (SGR). The Benchmarking between KRAS, other publicly IDX’s iron and steel companies and the best global player POSCO are done using average and aggregate methods. <br /> <br /> <br /> <br /> <br /> The problems faced by KRAS are Net Profit Margin will cause negative ROA and ROE consecutively amounted -2.67%. while Agregate w/o KRAS and POSCO both are positive. Current Ratio KRAS is 1.12 below 1.20 as a minimal lender’s requirement. Current ratio agregate w/o KRAS higher than KRAS amounted 1,96 while POSCO 1,60. KRAS‘s Altman Z-score 1.49 was below 1.81 on the DistressZone, indicated that the firm will likely go bankrupt or that the firm was in a condition of <br /> <br /> <br /> financial distress. Comparing to Agregate w/o KRAS 2,86 and POSCO 2.34 both on GreyZone. Net Profit Margin is negative led to a KRAS’s SGR decline sharply from 11.89 % in 2011 to -4.85 % in 2012, <br /> <br /> <br /> <br /> <br /> while in 2012 Agregate w/o KRAS 2.86 while POSCO 2.34. There are five objectives in formulating the alternative business solution. Firstly, is to increase Current Ratio higher than 1.20. Secondly, is to increase ROE above 0%. Thirdly, is to increase Altman Z-score to be higher than 1.81. Fourthly is to increase SGR to be higher than 0%. Lastly is to give a positive signal to investors and market players. Compiled from 6 alternatives, alternative 6 is selected because meet all the objectives of the business solution. The steps are performed to do Alternative 6 is rescheduling the payment of short term bank loan becomes more than 1 year so it will be categorized as Non-Current Liabilities, sales Inventories Finished Good aggressively, Cost reduction, and does not distribute dividends to shareholders. These steps will provide a positive signal to the market. <br /> <br /> <br /> <br /> <br /> Keywords : KRAS, benchmarking, Altman Z-Score, Sustainable Growth Rate (SGR).