FINANCIAL STRATEGY BASED ON FINANCIAL PERFORMANCE ANALYSIS OF PT BUKIT ULUWATU VILLA DURING COVID-19

• Main Author: Nur Khairina, Fildzah
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/61110
• Institution: Institut Teknologi Bandung

Since WHO declared COVID-19 as and a pandemic on 11 March 2020 until now, almost all countries decided to applied travel restriction policy to limit the spread of the COVID-19. Travel restriction policy resulted plunged in global tourism arrivals into -73% in January – December 2020 and up until May 2021 there is no sign of improvement. The decrease in the number of tourist arrivals decreases demand in the hospitality industry Meanwhile in Indonesia, the number of foreign tourist arrivals has plunged in all entrances and until it almost approaches 0 in Ngurah Rai Airport, Bali. This declining number of tourist arrivals has to reduce hotel room occupancy. Bali Province as one of the provinces with the highest room occupancy rates, in March 2020, has shown a decline of 50% compared to 2019. Economic downturn due to COVID-19 pandemic and sudden increase in the unemployment rate has pushed people out of work, driven people into poverty, and significantly reduced household incomes around the world. Research shows that per capita income of tourists plays a positive but low impact on tourist demand. Since foreign tourist visitors arrived in Indonesia come from EMDEs country, decreased in their per capita income will contribute on decreased tourist demand to Indonesia. PT Bukit Uluwatu Villa Tbk (BUVA) business scopes mainly cover the provision of luxurious accommodation services and hospitality, surely one of the company that being hard-hit in the short term where demand may be lost due to travel restrictions and economic downturn. Before pandemic, BUVA already recorded IDR113.42 billion loss. Since the company needs huge amount of investment in its large capital expenditures to continue its business and funded from long-term debt financing using properties as collateral, it could trigger business failure in this downturn market situation. This paper aims to evaluate the financial performance of BUVA through financial statement ratio analysis for the period 2015 to Q3 2020. From financial ratio analysis result, shows that PT Bukit Uluwatu Villa financial performance shows poor performance in profitability ratio, better performance in solvency ratio, poor performance in liquidity ratio, and fair performance in activity ratio. Meanwhile, DuPont analysis confirmed that the company's poor performance was caused by an excessive operating cost that was not balanced by sufficient revenue. Therefore, operational restructuring is recommended to optimize the company's profitability to save the company from a possible default in short term due to uncertainty situation caused by COVID-19 crisis