FINANCIAL RATIO AND ECONOMIC VALUE ADDED ANALYSIS TO MEASURE THE FINANCIAL HEALTH AND CONDITION OF THE COMPANY

• Main Author: Lumenta, Edner
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46224
• Institution: Institut Teknologi Bandung

The fast food market has proven to be able to keep growing even in the time of crisis to become one of the cause responsible for the rise of the consumer food service sector in all over the world. The vendors all across the globe has managed to successfully reach out to new consumers through expansion across country, innovations of products, and a unique new dining experience. As the only franchisee for the KFC brand in Indonesia, PT Fast Food Indonesia Tbk (FAST) has succeed in developing its brand as a well-known fast food restaurant brand. PT Pioneerindo Gourmet International Tbk (PTSP) which originated from franchisee of California Pioneer Chicken brand decided to be the owner of a brand that sells its own products under the name California Fried Chicken (CFC). To find out which one of them is the best fast food company in chicken segment in Indonesia, author calculate and analyze their financial performance from 2014-2018. Measurement is done with financial ratio analysis and Economic Value Added method. The ratio used to measure the financial ratio analysis is taken from ministerial decree of the State Owned Enterprises KEP-100/MBU/2002 about health rating assessment of state-owned enterprises. From the decree there are eight financial ratio used that is Return on Equity (ROE), Return on Investments (ROI), Cash Ratio, Current Ratio, Collection Period, Inventory Turnover, Total Assets Turnover, and Equity-to-Asset Ratio. From those eight ratios the financial health level of the company is rated, the ratings are healthy, less healthy, and not healthy. EVA method is used to efficiently improving operational performance, and indirectly increase company’s stock price. From the ratio analysis we know that FAST had a good financial performances, which categorized as company with healthy level with level AA from 2014 to 2018. Although PTSP is also a healthy company with level A, PTSP was struggling in 2015 because of the global economic conditions, such as increase in prices of raw materials, raise in fuel price, and also increase in exchange rate. From then on PTSP performance is keep getting better. From the Economic Value Added Analysis PTSP is consistent in generating EVA. Although in 2015 its EVA is dropped, PTSP can increase it back to more than 5 billion rupiah in 2018. The EVA analysis for FAST is worse than PTSP. From 2014 until 2017, FAST cannot generate any added value because FAST has a high investment but its Net Operating Profit After Tax (NOPAT) is too small compared to the investment. From these 5 years period, the first time FAST generate added value is in 2018. Both company needs to maintain its portion of equity and debt in invested capital to improve its financial performance further and improve its revenue.