THE IMPACT OF THE COVID-19 PANDEMIC ON THE FIRM FINANCIAL HEALTH & PROFITABILITY (A CASE STUDY OF PT. BINA REKAYASA ANUGRAH)

• Main Author: Handoko, Tri
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/70569
• Institution: Institut Teknologi Bandung

The Covid-19 pandemic has had a very severe impact on social and global macroeconomic life in 2020. The Central Statistics Agency has also confirmed that Indonesia officially entered a recession in the 3rd quarter of 2020. PT. Bina Rekayasa Anugrah (BRA), as a new player in the Heavy Equipment and Civil Construction sectors, has also been affected by the Covid-19 pandemic. The research aims to assist PT. BRA to evaluate the condition of the financial health and profitability of the Company due to the influence of unstable global and national economic conditions. To be able to evaluate the condition of the company's financial health, the authors use the Ministerial decree for State Owned Enterprises Kep-100/MBU/2002 as a reference. In addition, to evaluate the level of company profitability, the authors use the DuPont system of analysis to look further at the company's Return on Equity, which correlates horizontally with high or low Net Profit Margin (NPM) Ratio, Asset Turnover Ratio, and Financial Leverage Multiplier and compare it with the Industry Average in the Heavy Construction and Civil Engineering sector. After evaluating the financial statements of PT. BRA in 2019, 2020, and 2021 periods, based on the Ministerial decree for State Owned Enterprises Kep-100/MBU/2002, the following health rating results were obtained: AAA (Healthy), AA (Healthy), and AAA (Healthy). While the results of the profitability level in 2019, 2020, and 2021 periods, the Return On Equity ratios were obtained as follows, 105.35%, 56.7%, and 41.9%. Based on the DuPont System of Analysis, the downward trend in profitability was in fact caused by a decrease in the Company's Asset Turnover (Asset Utilization Efficiency). However, PT. BRA is still in the profitable category because the ROE & NPM ratio is still far above the industry average at the levels of 2.9%, -15%, and 1.7% in the same period.