THE DECLINING PROFIT ANALYZIS OF PT KRAKATAU STEEL TBK

• Main Author: Tristyanto, Rivan
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72419
• Institution: Institut Teknologi Bandung

The steel price in a recent year has decrease caused by overcapacity in china. Steel price continues to decline, as the average price in 2012 amounted to 585 US dollars / tons and then drop to only 210 US dollar / tons in 2015. This situation led into loss for many steel companies around the world. In recent year, PT Krakatau Steel Tbk gets some impact by the decline of steel price. It give a significant change in company policy and financial performance of a company. It make a decrease on company stock's value and loss on the financial statement of the company. This research aims to analyze the declining profit of PT Krakatau Steel Tbk. The methodology of this study is use unit root test, Johansen’s co-integration test, vector error correction model (VECM), Granger causality test, impulse response function (IRFs), variance decompositions (VDs) to looking relation between the steel price and stock price. If there is no relationship, this study will use Financial Performance analysis to find out what factor cause of declining profit of PT Krakatau Steel Tbk. The result shows that there is no relationship between steel price and stock price of PT Krakatau Steel, the from the financial performance analysis, its shows that company is not efficient to manage the cost and asset to generate more profit.