POULTRY INDUSTRY :CORPORATE BUSINESS

PERFORMANCE EVALUATION BASED ON FINANCIAL REPORT ANALYSIS

POST GRADUATE PROGRAMMASTER OF MANAGEMENT (MM)

2014

Designed By :ANDI CHAIDIR - 13 152 009

Disusun dan DipresentasikanSebagai Salah Satu Syarat Mata KuliahFINANCE MANAGEMENT & ANALYSISDosen : Bpk. JANUAR BUDIMAN, Ph.D

PUBLIC COMPANY

Top Rank in Poultry Industry(Indonesia Stock Exchange) :

1. PT. Charoen Pokphand Indonesia Tbk (Short Code : CPIN)

2. PT. Japfa Comfeed Indonesia, Tbk (Short Code : JPFA)

POULTRY INDUSTRY :INTRODUCTION

GENERAL BUSINESS PROCESS

Vision:Feed A Growing World

Mission:To produce and market the highest quality

and innovative feed, day old chicks and food products.

http://cp.co.id/

Vision “GROWING TOWARDS MUTUAL PROSPERITY”

Central to the success of PT Japfa Comfeed Indonesia Tbk (the “Company”) is a strong belief in the nurturing of mutually

rewarding relationships based on trust and integrity. With all its stakeholders, the Company takes the pro-active

stance of developing “win - win” relationships.

Mission To be the leading dependable provider of affordable protein

foods in Indonesia by building on the foundation of our excellent teamwork and proven experience for the benefit of all

stakeholders. http://www.japfacomfeed.co.id/profile/mision.html

FINANCIAL REPORT ANALYSIS

1. LIQUIDITY RATIO2. ACTIVITY RATIO

3. DEBT/SOLVABILITY RATIO4. PROFITABILITY RATIO

5. WORKING INVESTMENT (WI)

FINANCIAL RATIO

1LIQUIDITY RATIO

a) Current Ratiob) Quick ratio

c) CF from Operations Ratio

2009 2010 2011 2012 AVERAGE

CPIN 1.91 2.93 3.85 3.31 3

JPFA 2.21 2.63 1.59 1.82 2.06

0.25

0.75

1.25

1.75

2.25

2.75

3.25

3.75

Current Ratio

Current Ratio = Current Assets / Current Liabilities

2009 2010 2011 2012 AVERAGE

CPIN 1.04 1.86 2.13 1.76 1.7

JPFA 0.88 1.14 0.620000000000001

0.68 0.830000000000001

0.25

0.75

1.25

1.75

2.25

Quick Ratio

Quick Ratio = Current Assets - InventoryCurrent Liabilities

2009 2010 2011 2012 AVERAGE

CPIN 1.02 1.32 0.600000000000001

0.93 0.970000000000001

JPFA 0.38 0.650000000000001

-0.02 0.08 0.27

-0.10

0.10

0.30

0.50

0.70

0.90

1.10

1.30

CF from Operations Ratio

Axis Title

CF fr Operations Ratio = CF fr Operation / Current liabilities

CPIN is more liquid than JPFA

CONCLUSION :

2ACTIVITY RATIO

a) Average Collection Period (days)b) Inventory Turnover

c) Average Age of Inventory (days)d) Total Asset Turnover

2009 2010 2011 2012 AVERAGE

CPIN 21.48 21.56 27.5 30.71 25.31

JPFA 19.24 21.01 15.85 18.52 18.66

2.50

7.50

12.50

17.50

22.50

27.50

32.50

Average Collection Period (days)da

ys

Average Collection Period= Accounts ReceivablesAnnual Sales / 365 days

Inventory Turnover = COGSInventory

2009 2010 2011 2012 AVERAGE

CPIN 7.42 7.19 8.91 10.68 8.55

JPFA 4.9 4.38 4.35 3.64 4.32

1.00

3.00

5.00

7.00

9.00

11.00

Inventory Turnover

Average Age of Inventory = 365Inventory Turnover

2009 2010 2011 2012 AVERAGE

CPIN 49.16 50.75 40.95 34.17 43.76

JPFA 74.44 83.34 83.91 100.21 85.48

10.00

30.00

50.00

70.00

90.00

110.00

Average Age of Inventory (days)da

ys

Total Asset Turnover= SalesTotal Assets

2009 2010 2011 2012 AVERAGE

CPIN 2.72 2.31 2.03 1.73 2.2

JPFA 2.36 2 1.89 1.63 1.97

0.25

0.75

1.25

1.75

2.25

2.75

Total Asset Turnover

CPIN is better in activity but a bit slow on collection

CONCLUSION :

3DEBT/SOLVABILITY RATIO

a) Degree of Indebtedness: - Debt Ratio (%)

b) Ability to service debts: - Times Interest Earned

Ratio

Debt Ratio = Total Liabilities / Total Assets

2009 2010 2011 2012 AVERAGE

CPIN 44.82 31.24 30.05 33.79 34.97

JPFA 60.96 57.56 73.82 102.11 73.61

10.00

30.00

50.00

70.00

90.00

110.00

Debt Ratio (%)%

Times Interest Earned Ratio = EBITInterest

2009 2010 2011 2012 AVERAGE

CPIN 11.96 94.94 492.38 274.66 211.74

JPFA 6.51 8.11 3.53 4.24 5.6

25.00

75.00

125.00

175.00

225.00

275.00

325.00

375.00

425.00

475.00

Time-Interest Earned Ratio

More Likely To Be Able To Pay Interest

Obligation

CONCLUSION :

More Financial Leverage

To Pay Debts

4PROFITABILITY RATIO

a) Net Profit Marginb) Return on Total Assets

c) Return on Equity

Net Profit Margin = Net Profits after Taxessales

2009 2010 2011 2012 AVERAGE

CPIN 0.11 0.15 0.13 0.13 0.13

JPFA 0.06 0.07 0.04 0.06 0.06

0.01

0.03

0.05

0.07

0.09

0.11

0.13

0.15

Net Profit Margin

Return on Total Assets = Net Profits after TaxesTotal Assets

2009 2010 2011 2012 AVERAGE

CPIN 0.3 0.34 0.27 0.22 0.28

JPFA 0.13 0.16 0.1 0.16 0.14

0.03

0.08

0.13

0.18

0.23

0.28

0.33

Return on Total Assets

Return on Equity = Net Profits after TaxesStockholders' Equity

2009 2010 2011 2012 AVERAGE

CPIN 0.55 0.5 0.38 0.3 0.44

JPFA 0.39 0.31 0.19 0.23 0.28

0.05

0.15

0.25

0.35

0.45

0.55

Return on Equity

CPIN is higher in profitability

CONCLUSION :

5WORKING INVESTMENT

Working Investment = Trading Asset + Spontaeous FinancingWorking Investment = AR + Inventory - AP + AE

2009 2010 2011 2012 AVERAGE

CPIN 1774629 1840669 3199250 4313752 2782075

JPFA 2938495 3064748 3474673 4524108 3500506

250,000.00

750,000.00

1,250,000.00

1,750,000.00

2,250,000.00

2,750,000.00

3,250,000.00

3,750,000.00

4,250,000.00

4,750,000.00

Working Investment (Million)

What’s your opinion?

CONCLUSION :

?