FINAL FINANCIAL STATEMENT ANALYSIS

QUICK RATIO METHOD IN LIQUIDITY

1.      Financial Statement Analysis

Analysis of financial statement is the Process to understand financial activities from Financial statements and use to generate estimates and conclusions useful in conducting our business activities

2.      Ratio analysis of financial statements

a.       Liquidity

a)      current ratio

b)      quick ratio or acid test ratio

c)      cash ratio

d)     cash flow liquidity ratio

b.      Solvability

a)      financial leverage ratio

b)      total debt to total capital ratio

c)      total debt to equity capital ratio

d)     long-term debt to equity capital

e)      short-term debt to total debt

c.       profitability

a)      cost of goods sold analysis

b)      ROIC

c)      ROA or ROI

d)     ROCE

e)      cash return on assets

d.      cash flow

a)      operating CF to current liabilities

b)      operating CF to total liabilities

c)      operating CF to total assets

d)     Cash flow adequacy ratio

e)      cash reinvestment ratio

e.       bankruptcy prediction

a)         Univariat

b)         Multivariat Z-Score

c)         Mulivariat Ohlson (logit)

3.      Quick Ratio

Definition of Quick Ratio is an indicator of short term’s liquidity. The quick ratio measures a company’s ability to meet its short-terms obligation with its most liquid assets. The higher the quick the ratio, the better the position of the company.

The explanation of the Quick Ratio:

The Quick Ratio is more conservative than the current ratio, a more well known liquidity measure, because it excludes inventory from current assets.

Inventory is excluded   because some companies   have difficulty turning their inventory in to cash  in the event that short-term obligation  need to be paid off immediately, there are situations in which  the current ratio would overestimate a company’s short-term financial strength.

4.      Elements Of Current Assets

a.       Cash and cash equivalents

b.       Short-term Investments

c.       Account Receivable

d.      Inventory

e.       prepaid expenses

5.      Current Liabilities

Current Liabilities are often mean as all liabilities of the business to be settled in cash within the one fiscal year or one operating cycle of a given firm.

6.      Objective Of Current Ratio

Current ratio is used to measure how much collateral asset that belongs to the company to repay short-term debt

7.      Ratio Analysis and Quick Ratio are the parts of Financial Statement Analysis.

This financial statement belong to PT Hexindo Adiperkasa Tbk.

For Conclusions

From the previous case study, it can be concluded that the

}  Financial PT.Tower Bersama in 2011 showed that for every Rp 1 current liabilities guaranteed by Rp1,3 current assets.