Matakuliah : F0282 - Analisis Laporan Keuangan Perusahaan Tahun : 2009 ASPEK RENTABILITAS DAN ASPEK LEVERAGE/DEVIDEN Pertemuan 6 Murniadi Purboatmodjo

ASPEK RENTABILITAS Rentabilitas selama periode tertentu Kemampuan perusahaan menghasilkan laba selama periode tertentu Dengan membandingkan laba yang diperoleh dalam suatu periode tertentu dengan jumlah Aktiva atau Modal sendiri - Rentabilitas Ekonomis: Laba perusahaan dibandingkan dengan modal yang digunakan (modal sendiri dan modal asing) - Rentabilitas Usaha/Modal sendiri : laba perusahaan dibandingkan modal sendiri yang dimasukkan oleh pemilik perusahaan.

The ability of the firm to generate earnings Definisi lainnya mengenai Rentabilitas/Profitability: The ability of the firm to generate earnings Analysis of profit is important to : Stockholders  since they derive revenue, in the form of dividends, when paid from profit.  Profit ↑  market price ↑  capital gains Creditors  profits are one source of funds for debt coverage (Interest and Principal) Management  it is a performance measure

Sales 1. Gross Profit Margin – Cost of Goods Sold = Gross Profit Beginning Inventory + Purchases of Inventory – Ending Inventory

Gross Profit Margin (cont’d) COGS represents the cost of the product sold during the period Since COGS is such a large expense for merchandising and manufacturing firms  the changes in this figure can have a substantial impact on the profit for the period. To analyze  vertical common size basis  gross profit is compared to net sales (GPM) The ratio should then be analysed by comparison with industry data or by trend analysis overtime

2. Operating Income Margin Net Sales xxx -/- COGS (COGM) (xxx) Gross Profit xxx -/- operating expenses (xxx) Operating Income xxx Use operating income in the numerator It shows the efficiency in controlling operating expenses A measure of operating income dollars generated by each dollar of sales

Also referred to as return on sales 3. Net Profit Margin Also referred to as return on sales Reflects net income dollars generated by each dollar of sales The higher  the better Potential distortion - Net “other” income or loss Adjusted Profit Margin: To make NPM ratio more accurate: Remove  other income and other expense from net income, because these items do not relate to net sales A net ‘other income’ distorts NPM on the high side, A net ‘other expense’ distorts NPM on the low side.

4. Total Asset Turnover Measures the activity of the assets and the ability of the firm to generate sales through the use of the assets Potential distortion - Investments - Construction in progress - Other assets that do not relate to net sales

Measures the ability to utilize assets to create profits 5. Return on Assets Measures the ability to utilize assets to create profits Average total assets - Internal analysis: month-end amounts - External analysis: beginning and ending amounts - If necessary, consistent use of end-of-year amounts the higher  the better

6. DuPont Return on Assets Reviewing NPM, TA t.o., and ROA together, because of the direct influence that NPM and TA t.o. have on ROA The method was developed by E. I. DuPonT de Nemours and Company

DuPont Return on Assets (cont’d) DuPont analysis separates return on assets into net profit margin and total asset turnover Separating the ratio into the two elements allows evaluation of the causes for the change in return on assets

7. Operating Asset Turnover Measures the ability of operating assets to generate sales dollars

8. Return on Operating Assets Measures the ability of operating assets to generate operating income DuPont analysis of the return on operating assets:

9. Return on Investment (ROI) Measures the earnings on investment and indicates how well the firm utilizes its asset base Measures the relationship between the income earned and the capital invested Measures ability to reward investors and to attract providers of future funds Evaluates the earnings performance without regard to financing sources

Measures the return to common and preferred stockholders 10. Return on Total Equity Measures the return to common and preferred stockholders Adjustments for redeemable preferred stock - Deduct dividends from net income (numerator) - Deduct stock value from total equity (denominator)

ASPEK LEVERAGE/DEVIDEN B. Aspek Leverage Common shareholder is the residual owner  therefore entitled to whatever profits/earnings are left The use of debt (financial leverage) and the existence of fixed operating costs (operating leverage) have a significant impact on earnings. The use of financing with a fixed charge (such as interest) Using the FL results in  a fixed financing charge that can materially affect the earnings available to the common SH Successful FL  if earned on the borrowed funds > paid to use the funds Not successful FL  If earned on the borrowed funds < paid to use the funds

B. 1. Earnings per Share Since earnings pertain to an entire fiscal period, thus Average common shares outstanding is used for parity of information When the common shares outstanding ↑ as a results of a stock dividend or stock split  retroactive recognition must be given to these events for all comparative EPS presentations Stock split and stock dividends do not provide the firm with more funds  they just change the number of outstanding shares  affect EPS Assume that a 2 for 1 stock split took place on December 31 The denominator of EPS computation becomes 11,750 x 2 = 23,500 shares. If NI is $100,000 and preferred dividend total $10,000, then the Simple - EPS would be = EPS = $100,000 – 10,000 = $3.83 23,500

B. 2. Price/Earnings Ratio Measures the relationship between the market price of a share of common stock and that stock’s current earnings per share Use of diluted earnings per share gives more conservative price/earnings ratio P/E ratio is seen by the investors as a gauge of the future earnings power of the firm.

Price/Earnings Ratio (cont’d) P/E ratio does not have any meaning when:  A firm has abnormally low profit  P/E ratio would be normally high  A firm has losses  P/E ratio would be negative It is important to get a perspective on this ratio by comparing the average P/E for the industry and an average for all of the stocks on the stock exchange Be aware that some financial services use primary EPS rather than fully diluted EPS

Measures the portion of current earnings per B. 3. Dividend Payout Measures the portion of current earnings per common share being paid out in dividends A stable dividend policy is developed by consideration of recurring earnings Lower payout typically found in - New firms - Growing firms and firms perceived as growth firms

Indicates the relationship between the dividends per B. 4. Dividend Yield Indicates the relationship between the dividends per common share and the market price per common share Total earning from securities = Dividends + Price Appreciation The yield is a function of - The firm’s dividend policy - Market price

Indicates the amount of stockholders’ equity that relates B. 5. Book Value per Share Indicates the amount of stockholders’ equity that relates to each share of outstanding CS. Preferred equity should be measured at liquidation value, if available (to be paid in the event of liquidation) Market value vis-à-vis book value - Book value reflects past unrecovered asset costs - Market value reflects the potential of the firm