Financial Statement-Huda

1.      Definition of Financial Statement Analysis

a.       Analisis financial statements is a method that can be used in the financial statements users explore information about the company.

b.      Financial analysis using financial statements to analyze a company's financial position and performance, and to assess the financial performance of the company in the future.

2.      Purposes of Financial Statement Analysis

a.       Screening, Analysis was conducted in order to determine the situation and condition of the company's financial statements without going directly to the field

b.      Understanding, Understanding corporate, financial condition and results of operations

c.       Forecasting, Analysis is used to forecast the company's financial condition in the future

d.      Diagnosis, Analysis is intended to look at the possibility of problems occurring

e.       Evaluating, Analysis performed to assess the performance of management in managing the company

3.      Scopes of Financial Statement Analysis

a.       Liquidity, the analysis of the short-term perspective

b.      Solvency, an analysis of the long-term perspective

c.       Profitability, an analysis of the company's ability to earn income, either by sale or by investment

d.      Cash Flow, is an analysis of cash inflows and cash outflow

e.       Bankruptcy, is an analysis that can help companies to anticipate the possibility of the company going bankrupt due to financial problems

f.       Risk, is an analysis of the risks faced by the company that will lead to financial difficulties and the company eventually went bankrupt

g.      Investment, an analysis of the company's investment plan in the form of securities

4.      Cash Flow Analysis

a.       Definition, cash flow statement is a statement about the cash inflows and cash outflow during the last period

b.      Usefulness of Cash Flow Information

1)      The stakeholders can learn how the company generates and uses cash and cash equivalents

2)      Stakeholders are able to evaluate the changes in net assets, the financial structure of the company (including liquidity and solvency).

3)      Cash flow information is useful in assessing the ability of the enterprise to generate cash and cash equivalents.

5.      Technics of Cash Flow Analysis

a.       Horizontal Analysis

b.      Vertical Analysis

c.       Cross Section Analysis

d.      Ratio Analysis, is a technique or method that compares between components in the financial statements

6.      Ratio Cash Flow Analysis

a.       RAKOKL

b.      RAKOTK

c.       RAKOTA

d.      RKAK

e.       RRK

7.      RAKOKL

a.       Definition of RAKOKL

The ratio of operating cash flow to current liabilities is used to measure a company's financial liquidity. In particular, this ratio measures how much of the operating cash flow generated to cover the company's current liabilities of the company. The higher this ratio, the more liquid the company

b.      Formula of RAKOKL

8.      Case

PT United Tractors Tbk and Subsidiaries

for  2008 and 2009

Year	Net Operating Cash Flow (Million Rupiahs)	Current Liability (Million Rupiahs)	RAKOKL
2008	4.253.895	7.874.135	0,54
2009	5.101.022	7.225.966	0,71

It shows that in 2008, PT United Tractors Tbk and Subsidiaries able to provide cash flow from operating activities amounted to 54% to cover current liabilities. While in 2009, the company was able to provide the cash flow from operating activities amounted to 71% to cover current liabilities. This indicates that PT United Tractors Tbk and Subsidiaries relatively illiquid

9.      Conclusion

This ratio measures how much cash flow generated operating companies to cover the current liabilities of the company. The higher this ratio, the more liquid the company.