PT ULTRAJAYA MILK INDUSTRY & TRADING COMPANY

Tbk
Financial Statement Analysis

By:
Made Cahyani Prastuti
(16) (1506305144)

A. LIQUIDITY RATIOS
Liquidity ratios are used to measure a firms ability to meet short-term obligations. They
compare short-term obligations with short-term (or current) resources available to meet these
obligations.
1. Current Ratios
It shows a firms ability to cover its current liabilities with its current assets.
Formula :

In balance sheet for the year-ended 2014 and 2015 of PT Ultrajaya Milk Industry &
Trading Company Tbk we can find the current assets and the current liabilities. Then, we can
calculate the ratio to know the ability of company to cover its current liabilities with its current
asset and the performance each year.
So, PT Ultrajaya Milk Industry & Trading Company Tbk, for the year-ended 2014 ratio is

= 3.345
The current ratio for the year-ended 2014 is 3.345, its mean every Rp 1 of current
liabilities is guarenteed with Rp 3.345 of current assets.
PT Ultrajaya Milk Industry & Trading Company Tbk, for the year-ended 2015 ratio is
= 3.745

The current ratio for the year-ended 2015 is 3.745, its mean that every Rp 1 of current
liabilities is guarenteed with Rp 3.745 of current assets. If we compare the current ratio in 2014
and 2015, PT Ultrajaya Milk Industry & Trading Company Tbk current ratio is increased by

All figures are in million Rupiahs.

0.400 (3.745-3.345). Its mean the firms ability for year 2015 to financing their short-term
obligations from current assets is better than for the year 2014.
We can conclude that the higher current ratio, the greater the ability of the firm to pay its
bills.
2. Acid Test ( Quick ) Ratio
It shows a firms ability to meet current liabilities with its most liquid (quick) assets.
Formula :

This ratio is the same as the current ratio except that it excludes inventories
presumably the least liquid portion of current assets from the numerator. In balance sheet of PT
Ultrajaya Milk Industry & Trading Company Tbk we can find the current assets, inventory and
the current liabilities.
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2014 is

= 1.889
Acid-Test Ratio for year-end 2013 is

, its mean every Rp 1 of current liabilities is

guarenteed with Rp 1.889 of current assets exclude the inventories.

PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2015 is

= 2.430
Acid-Test Ratio for year-end 2013 is

, its mean every Rp 1 of current liabilities is

guarenteed with Rp 2.430 of current assets exclude the inventories.

From the calculation we know that Acid-Test Ratio for year-end 2014 to 2015 has
increased with amount 0.54(2.430-1.889). Its mean the firms ability for year 2015 to meet
current liabilities with its most liquid asset is better than for the year 2014.

All figures are in million Rupiahs.

B. FINANCIAL LEVERAGE ( DEBT ) RATIOS

Ratios that show the extent to which the firm is financed by debt.
1. Debt To Equity Ratios
Ratios that show the extent to which the firm is financed by debt.
Formula :

Creditors would generally like this ratio to be low. The lower the ratio, the higher the
level of the firms financing that is being provided by shareholders and the larger the creditor
cushion (margin of protection) in the event of shrinking asset values or outright losses. In
balance sheet of PT Ultrajaya Milk Industry & Trading Company Tbk we can find the total debt
(current liabilities plus long term debt) and shareholders equity.
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2014 is

= 0.288
The ratio shows that Rp.288 of the company financing will provide by creditor and Rp.1
is providing by the shareholder.
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2015 is

= 0.265
The ratio shows that Rp.265 of the company financing will provide by creditor and Rp.1
All figures are in million Rupiahs.

is providing by the shareholder.

From the calculation we know that Debt-to-Equity Ratio for year-end 2014 to 2015 has
decreased with amount 0.023(0.288-0.265). Its mean level of the firms financing that is being
provided by shareholders is higher in 2014 than 2015.
In general, a high debt-to-equity ratio indicates that a company may not be able to
generate enough cash to satisfy its debt obligations. However, low debt-to-equity ratios may also
indicate that a company is not taking advantage of the increased profits that
financial leverage may bring.

2. Debt to total Assets Ratio

Ratios derived by dividing a firms total debt by its total assets (showing the
percentage of the firms assets that is supported by debt financing).
Formula :

In balance sheet of PT Ultrajaya Milk Industry & Trading Company Tbk we can find
the total debt (current liabilities plus long term debt) and total Assets.
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2014 is

= 0,224
The ratio shows means that 22.4 percent of the firms assets are financed with debt
and the remaining of 77,6 percent of financing comes from shareholders equity.
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2015 is

= 0,209

All figures are in million Rupiahs.

The ratio shows means that 20.9 percent of the firms assets are financed with
debt and the remaining of 79,1 percent of financing comes from shareholders equity.
From the calculation we know that Debt-to-Total Assets for year-end 2014 to 2015
has decreased with amount 0.015 (0.224-0.209). Its mean level of the firms financing for total
assets that is being provided by debt is declining.

C. COVERAGE RATIO
Ratios that relate the financial charges of a firm to its ability to service, or cover, them . In
consolidated statements of financial position of PT Ultrajaya Milk Industry & Trading Company
Tbk we can find the total income and interest charge.
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2014 is
1. Interest Coverage Ratio
The ratio indicates a firms ability to cover interest charges. It is also called times
interest earned.
Formula :

The higher the ratio, the greater the likelihood that the company could cover its
interest payments without difficulty. It also sheds some light on the firms capacity to take on
new debt. In Statement of Earning or Income statement of PT Ultrajaya Milk Industry & Trading
Company Tbk we can find the EBIT and Interest Charge (Interest Expense) in consolidated
statements of financial position.
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2014 is
All figures are in million Rupiahs.

= 139,486
The ratio shows that PT Ultrajaya Milk Industry & Trading Company ability to cover
annual interest 139,486 times with operating income ( EBIT ) appears to provide a good margin
of safety.
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2015 is

= 1167.791
The ratio shows that PT Ultrajaya Milk Industry & Trading Company ability to cover
annual interest 1167.791 times with operating income ( EBIT ). It means that the company
ability is increased, to cover its interest payment in 2015 than 2014.
D. ACTIVITY RATIOS
Ratios that measure how effectively the firm is using its assets.
1. Inventory Turnover Ratio
To help determine how effectively the firm is managing inventory (and also to gain an
indication of the liquidity of inventory).
Formula :

Or in Days

The inventory turnover ratio tells us how many times inventory is turned over into
receivables through sales during the year. the higher the inventory turnover, the more efficient
the inventory management of the firm and the fresher, more liquid, the inventory.
In Statement of Earning or Income statement of PT Ultrajaya Milk Industry &
Trading Company Tbk we can find the Cost of Goods Sold and for Inventory we can find it on
Balance Sheet.
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2015 is
All figures are in million Rupiahs.

Or In Days

= 4.22

= 85 days

The ratio shows that the turnover of inventory is 4.22 times. Its shows that the fund
that invest in inventory, turnover 4.22 times in a year. Its also means that the company will take
85 days to sell average inventory before inventory is turned into accounts receivable

2. Total Assets Turnover Ratio

The relative efficiency with which a firm utilizes its total assets to generate sales
Formula :

In Statement of Earning or Income statement of PT Ultrajaya Milk Industry &

Trading Company Tbkwe can find the Net Sales and for Total Assets we can find it on
Balance Sheet.
So, for PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end
2015 is

= 1.24
The ratio shows that the turnover of assets is 1.24 times. Its shows that every dollar
in assets, PT Ultrajaya Milk Industry & Trading Company Tbk only generates Rp.1.24, or this
ratio means that the company only can create the sales with amount 1.24 times from the total
assets that own by the company.
E. PROFITABILITY RATIOS
Ratios that relate profits to sales and investment
All figures are in million Rupiahs.

1. Net Profit Margin

The net profit margin is a measure of the firms profitability of sales after taking account
of all expenses and income taxes. It shows the ability of the firms to create profit after deduct all
of the expense to make net profit. This ratio is important for operation manager because it shows
the strategy to determine the price and how to manage all of the expenses.

For PT Ultrajaya Milk Industry & Trading Company Tbk, Net profit margin on sales for yearend 2015

The ratio shows that net profit margin is 0.072 or 7.20%

For PT Ultrajaya Milk Industry & Trading Company Tbk, Net profit margin on sales for yearend 2015

The ratio show that net profit margin is 0.119 or 11,90%

From the calculation we know that net profit margin ratio for year-end 2014 to 2015 has
increased with amount 4.7% (11.90%-7.20%). It tells us that the ability of the firms to produce
net profit is increased too. Supposedly, the higher net profit margin ratio, the greater the
efficiency of the firm on manage their expense to gain net profit.
2. Return on Equity Ratios

All figures are in million Rupiahs.

This ratio tells us the earning power on shareholders book value investment, and is
frequently used in comparing two or more firms in an industry.
Formula :

In Statement of Earning or Income statement of PT Ultrajaya Milk Industry & Trading

Company Tbk, we can find the Net Profit After Taxes and Shareholders equity in Balance Sheet.
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2014 is

=0.125
The ratio show return on equity is 0.125 or 12,5% which means that every Rp.100 the company
has in investment, it makes $ 12.5 in profit
PT Ultrajaya Milk Industry & Trading Company Tbk, this ratio for year-end 2015 is

=0.187
The ratio shows return on equity is0.187 or 18.7%, which means that every Rp.100 the company
has in investment, it makes $ 18.7 in profit.
From the calculation we know that Return on Equity Ratios ratio for year-end 2014 to
2015 has increased with amount 6.2% (18.70%-12.50%). So that, earning power on
shareholders book-value investment in 2015 is higher than 2015.

All figures are in million Rupiahs.