FINANCIAL PERFORMANCE ANALYSIS OF PT INTEGRA INDOCABINET TBK AND COMPLIANCE OF FINANCIAL LOAN COVENANT TOWARD DEBT REPAYMENT CAPABILITY

• Main Author: Nur Azizah, Adinda
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/76511
• Institution: Institut Teknologi Bandung

In 2022, PT Integra Indocabinet Tbk faced a decline in net sales of -16.42%. At the same time Indonesia’s furniture industry also faced a decline in export value. This research is conducted to analyze Integra Group’s financial performance from 2018 to 2022 specifically regarding its debt repayment capability. Financial ratios from several aspects such as profitability, liquidity, activity, and solvency ratios will be generated to reflect the firm’s performance and trend in the past five years. Other than evaluating the firm’s financial ratios, this research will also evaluate the firm’s compliance towards financial loan covenants in existing bank loans and bond issuance. From the financial ratio analysis, the firm’s performance plummeted in 2022 and it is mainly due to the decline of sales experienced by Integra Group. There may be some issues regarding the firm’s liquidity performance. However, it can be seen from the solvency ratios such as DSCR and Interest Coverage Ratio that the firm is still capable in meeting their obligations in paying their debt interest and principal payments. As for the compliance in financial loan covenants, it shows that there is an indication of covenant breach in Debt-to-EBITDA ratio which is applied as a financial loan covenant by PT Bank Mandiri (Persero) Tbk and PT Bank Danamon Indonesia Tbk. However, the firm is still able to pay their debt principal and even pay off the credit facilities. The research found that the decline of sales faced by the firm really made a significant impact towards the firm’s weakened financial performance in 2022. In terms of compliance towards financial loan covenants from bank loans and bond issuance, the covenant breach doesn’t affect the firm’s capability in debt repayments.