PROPOSED SOLUTIONS TO IMPROVE FINANCIAL HEALTH IN PT GRAHA SARANA DUTA

• Main Author: Intan Ardita, Misliana
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/45498
• Institution: Institut Teknologi Bandung

One of the important pillars for the company to operate constantly and maintain the stability of its productivity by regarding the company's financial condition. Good financial management can prevent the company from potential bankruptcy. The condition of financial difficulties is a warning sign for the company before bankruptcy occurs. The detection needs to be done to determine the condition of the company's financial health, especially for companies that are very vulnerable to be bankrupt such as the property and real estate industries. Detection of potential bankruptcy caused by the financial difficulties of PT. Graha Sarana Duta can be done by analyzing the company's financial statements. Factors that influence the occurrence of financial difficulties will be seen by using of the Altman Z-Score model which consists of five variables, those are Working capital/Total assets, Retained earnings/Total assets, Earnings before interest and taxes/Total assets, Book value of equity/Book value of liabilities, and Sales/Total assets. The results of the analysis showed that the company was in the distress zone in the last three years where the value generated was below 1.23. As for those that affect the company's financial condition becomes difficult due to the lack of working capital of the company to fund operational needs and cover all its obligations, utilization of assets that are not optimal in producing profits, and fixed assets that dominate so that the company's liquidity is very small. The proposal is aimed to improve financial health and preventing the company from potential bankruptcy. Starting from the proposal to increase working capital through long-term loans, factoring, increasing income by focusing on sales, reducing the portion of the distribution of dividends and proposing to evaluate the assets owned so that they can be used effectively and efficiently. Furthermore, the proposed implementation plan that was given was prepared with the ultimate goal of improving the financial health of the company.