Analysis of Financial Condition

a.         Liquidity Analysis

In the current ratio, if the value less than 1, it’s mean the company has a short-term liabilities or obligation problem. According to data above we know that all of current ratio from year 2005 until 2010 had value more than 1, so in this case PT. Mayora Indah has no problem with their short-term liabilities or obligation.

The cash ratio ignores inventory and receivable, in this cash ratio higher value of ratio means better performance at the company. According to data above, all of the value of cash ratio that PT. Mayora Indah have from year 2005 until 2010 have value less than 1. It’s mean that PT. Mayora Indah doesn’t have some cash to cover all of their current liabilities, but it’s reasonable because it’s very rare there is a company that have some cash that can cover all of their current liabilities.

The acid test ratio (quick ratio) is almost the same with the current ratio, the different between them is in the quick ratio the company’s inventories have some effect to the ratio. In this ratio, if the value of the ratio is less than 1, it’s mean the company have problem with their inventory. According to the data above all of the quick ratio have value more than 1, so PT. Mayora Indah doesn’t have the inventory problem. If the ratio higher it’s means the company have a good condition of inventories and PT. Mayora Indah have a good condition of their inventories in year 2005 because in that year the value of the ratio is the highest than the other.

b.      Efficiency Analysis

Both of them showed ‘similar’ trend of fluctuation for both Inventory Turnover and Accounts Receivable, where the one which made changes were in net sales (as CGS in inventory turnover ratio) as numerator, while it is better for accounts receivable to steadily grew down (not keeps growing up as Inventory) while net sales—as numerator—sharply grew up. This condition told us that in further period the company is in, the more amount of money which can be converted as cash earned, thus support the liquidity of the company to quicken its flow of money. Make it easier to open new projects as the money is available.

In this subtitle, we can conclude that the best grown efficient factor in this company is in accounts receivable, while in its inventory the company faced fault but has been getting more efficient after 2008. For the assets efficiency of this company, we can know from data that that the most data is in fixed assets turnover to be better, while in total assets not to be so sharply changed. In such a case, we can conclude that company has been getting smarter in using fixed assets to operate its business (therefore inventory efficiency came better).

c.       Leverage Analysis

When we want to analyze the financial leverage of a company, we can use leverage ratios. Leverage ratios (Capitalization ratios) are the measures of the relative contribution of stockholders and creditors, and of the firm’s ability to pay financing charges (value of firm’s debt to the total value of the firm). In year 2005 until 2010, the debt ratio is 0,5362, that mean if PT Mayora Indah, Tbk used their 53,62% of their debt to fund their assets. The company’s equity ratio is decreasing up to 0,4527 (higher risk than previous year) from year 2005-2010.

Times interest earned (TIE) ratio measures how well a company has its interest obligation covered, and it’s often called the interest coverage ratio. For PT. Mayora Indah Tbk, their TIE ratio is increasing for each year. Up to 2010 this company can cover their interest bill 8,81 times over (this is a good sign for this company).

d.      Profitability Analysis

Profitability ratios are ratios that determine the company’s ability to produce profits. The company’s ability to produce profits is high during the period when the profitability ratios are high as well. In other words, higher the profitability ratios indicate that the company’s ability to produce profits is better.

During the year of 2010, almost all profitability ratios of this company experienced a decrease in value except ROE. Net Profit Margin value for the year of 2010 decreased from 0.0779 to 0.067. If this value decreases, we can assume that the income from the sale of one unit also decreases. Moreover, the ROA value during 2010 decreased from 0.1146 to 0.11. Then the firm’s ability to generate income from investment is decreased during 2010.

Company Profile

Since first established in 1977, PT Mayora Indah Tbk has been one of Indonesia’s important food industries. As a result of the country’s growth in economy and the shift of social consumptive pattern towards more practical products, PT Mayora boasts a rapid growth over the years. Today, PT Mayora Indah Tbk is divided into 6 business divisions

1. Biscuit: Roma, Better, Slai O Lai, and Danisa
2. Candy: Kopiko, Kis, Tamarin, and Plonk
3. wafer: BengBeng, Astor, and Roma
4. Chocolate: ChokiChoki, and Danisa
5. Health Food: Energen
6. Coffee : Torabika 

      To meet the ever increasing market demands, PT Mayora Indah Tbk went public through Initial Public Offering (IPO) in 1990. A successful move that is evident in the materialization of factories in Tangerang, Bekasi and Surabaya, which employ 5,300 workers.

      Supported with strong and wide distribution networks, products of PT Mayora Indah Tbk are available throughout Indonesia and some overseas countries such as Malaysia, Thailand, Philippines, Vietnam, Singapore, Hong Kong, Saudi Arabia, Australia, Africa, America and Italy.

Vision and Mission

·           To continuously improve our competitive position in the category.

·           To build strong brands and distribution channels in all fronts.

·           To provide a challenging, fun and financially rewarding working environment where fair competition and a responsible attitude are encouraged.

·           To be socially and environmentally responsible.

·           To bring values to our stakeholders by securing growth and strong financial structure in the industry.

The Group Name's Philosophy

Hello everyone. Welcome to the “Profit Makers” blog. We are a group of economic students of Universitas Atma Jaya Yogyakarta (UAJY), and we created this blog for Mr. Alex’s Financial Management class (KEU230 / FINANCE 230) during the first semester of the 2011/12 academic year. We hope that readers of this blog would be able to learn something about Financial Management because we, as the writers of this blog, are sure that we would be learning in the process. We know that we are far from perfect and we are open to any discussion that relates to our blog. Thank you.

What does “Profit Makers” mean?

 First of all, we need to understand the two terms that we are using in this phrase:

• Profit. Of course, as we learned before in microeconomics, we concluded that a company should not only achieve accounting profit (revenues>costs) but also economic profit. This kind of profit is our main concern. Economic profit is about the difference between total costs, including opportunity costs gave up to produce total revenues.
• Makers. As economic students, we do not want to talk about economic profit only, but also involved in producing it. That’s why we have set our mind to be the ‘makers.'

Why do we call ourselves “Profit Makers”?

In our opinion, everyone in the world love money. However, everyone hates costs. It would be great if we live in a world where everything is free of costs. Yet, where there is money there are always costs. Don’t you agree? How about profits? Does everyone love profits? It would be a very difficult challenge to find someone who hates profits. However, making profit is not a really easy thing to do. In most situations, making profit is essential and very challenging. We believe that people who are able to make profits in their organization are successful people who are able to overcome many challenges that are becoming unpredictable.

Ironically, we are still a group of economic students. We haven’t been profit makers yet but in this process, we want to set up our minds to give the best value in every chance we are doing. We don’t want to speak nonsense about this but we really want to learn how to be profitable, since we have to exchange many factors (more than financial things) including money and opportunities to get the biggest economic profit.

Hopefully, when we pass this introductory class, we will be able to have broader perspective to achieve not only accounting but also economic profit.

Members’ profile

    We love an Indonesian proverb, “Tak kenal, maka tak sayang.” This proverb means that if we are not familiar with someone or something then we cannot have a good connection with the person or the thing. Therefore, we would like to introduce ourselves first.

Hello everyone! I am Ansgarius Albion. I am from the same university as others, Universitas Atma Jaya Jogjakarta in process to finish my undergraduate program in International Business and Management Program (IBMP) class of 2010. I’m in doubt whether to choose Finance or Marketing as my specific field. I study IBMP because I like uncertainty (in economy, of course). My blood is pure Javanese but I grew up in Palembang city on Sumatra Island, so I must be unable to talk to you in formal Javanese. I am from a simple good family. As you guys can see, I love sheep, as my Lord Jesus is my real Shepherd (spiritual understanding).

Hi everyone. My name is Peniel Jefferson Simarmata but most people call me Jeff. I’m currently taking my undergraduate degree at Universitas Atma Jaya Yogyakarta (UAJY). I enrolled at UAJY during the year of 2010 and took the International Financial Accountancy Program (IFAP). I’m blessed to be studying in this university, especially in this program, because I’m able to receive education that most people in Indonesia cannot have and also improve my English. I believe that there are no limits for learning. We are able to learn about many things in this world but it’s up to us to decide what to learn. In contradiction to what many people think about me, I’m actually pure Batak because my Dad and Mom are pure Batak. My parents are typical Batak parents because they often encourage me to learn about Batak traditions, practices, and rules. I try my best to make my parents proud of me because they have many expectations for me but I think what’s more important is that I have to do my best for my future.

Hello my friend, my name is Edi Kristianto, you can call me edi, ed, or whatever you want. Now I’m studying the International Financial Accountancy Program (IFAP) at Universitas Atma Jaya Yogyakarta. I take that program because I’m very interested in Accounting and I hope in my future I can be a very good and competence accountant that works on a big company. I am originally from Yogyakarta, my dad is from Central Java and my mom is from Yogyakarta. I hope I can learn more about financial management so I can manage my financial well ^^.

Hi guys, my name is Yosua Surya Pribadi but you can call me Yosua. I come from magelang, central JAva (about 50km from Yogyakarta). Now, i'm studying in the third semester of international financial accountancy program (IFAP) at Universitas Atma Jaya Yogyakarta (UAJY). I'm very happy to study here and also fell challanged in every semester on the courses that i took on each semester. I hope to do my best in this semester included in this financial management course.