COMPANY PROFILE
Delta Djakarta Tbk is one of the leading and oldest manufacturers of distributor of some of the best beer brand in the world, such as Anker, Carlsberg, San Miguel, and Kuda Putih trademarks. From 1932, the management has changes many times and in 1984 is the first time for Delta Djakarta Tbk go public started to sell it shares in Indonesia at Jakarta and Surabaya Stock Exchange and the headquarters at Jl. Inspeksi Tarum Barat-Tambun, Bekasi, West Java-Indonesia.
Delta Djakarta Tbk also produce non alcoholic drinks, there are Sodaku and Soda Ice which are the lead brand of Delta Djakarta for carbonated soft drink brand and carbonated water in Indonesia. Delta Djakarta Tbk is able to keep a good company’s quality and customer commitment and make them able to compete in various international competitor.
FINANCIAL ANALYSIS
Liquidity Analysis
Liquidity analysis requires the use of cash budgets and ratio analysis provides a quick, easy-to-use measure of liquidity.
1. Current Ratio
Current Ratio indicates the extent to which current liabilities are covered by assets expected to be converted to cash in the near future. From the data, we can know that: If the current ratio is bigger than 1.00, generally the company is on a good position and is able to meet its short term debt obligation.
2. Quick or Acid-test Ratio
Some assets are closer to cash than others. If trouble comes, inventory may not sell at anything above fire-sale prices. From the data, we can know that: The bigger ratio the better, because company would not have to sell inventory to pay its obligations.
3. Cash Ratio
A company’s most liquid assets are its holdings of cash and marketable securities. It may not be a big deal, if company has low cash ratio, because the company can borrow on short notice, but still the company needs to know their most liquid assets regarding pay its current obligations.
Efficiency Analysis
Efficiency Analysis is another important thing to evaluate financial statement, because it measures the efficiency of a company on turning their inventory, assets, and accounts receivables.
Average Collection Period
Average Collection period is average number of days that a company needs to collect or receive money in cash from its account receivable.
1. Account Receivables Turnover
Account Receivable Turnover measures the speed they received cash from account receivable. The higher the ratio, the better the company performs, because a high turnover ratio is generally a good thing since it means that customers are paying their bills on time.
2. Total Assets Turnover
The total asset turnover ratio measures the ability of a company to use its assets to generate sales. The higher the total asset turnover ratio as compared from historical data for the company, the more intense the firm’s sales, which is related with one or more of the asset composing total assets.
3. Inventory Turnover
Inventory Turnover measures the efficiency of the business in managing and selling its inventory. This ratio gauges the liquidity of the firm's inventory. From the data, we can know that the higher inventory turnover ratio means the better, because a high inventory ratio shows that company is efficiently managing and selling its inventory.
Fixed Assets Turnover
Fixed Assets turnover measures the company ability and its effectiveness to generate sales based on the use of their investments in plant, property, and equipment.
Leverage Analysis
Leverage ratios show the degree to which the business is leveraging itself through its use of borrowed money. Financial leverage ratios measure the extent to which the firm is using long term debt.
1. Debt Ratio
Debt ratio measures the leverage of the company along with the potential risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.
2. Equity Ratio
Equity ratio indicates the relative proportion of equity to all used to finance a company's assets. A low equity ratio will produce good results for stockholders as long as the company earns a rate of return on assets that is greater than the interest rate paid to creditors.
3. Debt to Equity Ratio
Debt to Equity Ratio measures how much money a company should safely be able to borrow over long periods of time. The smaller, the better, because it less risky for the company.
Profitability Analysis
Profitability ratios show a company’s overall efficiency and performance as well as represent the firm’s ability to measure the overall efficiency of the firm in generating returns for its shareholders.
1. Operating Profit margin
Operating profit margin measures a company’s operating efficiency and pricing efficiency with its successful cost controlling. The higher means the better overall operating efficiency, incorporating all of the expenses of ordinary, daily business activity.
2 Net Profit Margin:
Net profit margin represents the firm’s ability to measure the overall efficiency of the firm in generating returns for its shareholders. The higher means the better show of how much each sales dollar shows up as net income after all expenses are paid.
3. Operating Income Return on Investment:
Operating Income Return on Investment measured that the firm’s ability to meet its annual interest payment.
4. Return on Assets
It measures the efficiency with which the company is managing its investment in assets and using them to generate profit. The higher the percentage, the better, because it shows that the company is doing a good job on using its assets to generate sales.
5. Return on Equity
The Return on Equity ratio is perhaps the most important of all the financial ratios to investors in the company. It measures the return on the money the investors have put into the company. The higher the percentage, the better, because it shows that the company is doing a good job on managing shareholders’ money.
6. Times Interest Earnings
Times Interest Earning indicates how many times a company can cover its interest charges on a pretax basis. Failing to meet these into obligation could force a company into bankruptcy.
7. Earnings per Shares
The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability. The higher is number is the better because company gain the more profit on each share they sell.
DuPont Analysis
DuPont analysis tells us that ROE is affected by three things: Operating efficiency, which is measured by profit margin; Asset use efficiency, which is measured by total asset turnover; Financial leverage, which is measured by the equity multiplier.
