25
Analysis Financial Performance of PT. Garuda Indonesia (Persero) Tbk Registered in Indonesia Stock
Exchange (Period 2017-2019)
Putri Zizi
Departement of Management, Narotama University Surabaya Jl. Arief Rachman Hakim No. 51 Surabaya, Indonesia
Abstract
Commercial aviation is a part of aviation industry which specializes in operating aircraft for passengers and cargo. In Indonesia, there is one flag carrier that has a worldwide reputation in aviation industry which is Garuda Indonesia. This research aims to analyze the financial performance of PT. Garuda Indonesia for the period 2017-2019 by using financial ratio analysis. This research uses qualitative descriptive type of reseach.
The data required in this research is collected based on secondary data. The data analysis method used is the horizontal analysis method, which compares financial reports for several specific time periods. The result suggests that the financial performance of PT. Garuda Indonesia for the last 3 years can generally considered bad. From data analysis it can be seen that the liquidity ratio of PT. Garuda Indonesia Tbk is seen in unfavorable condition where the average CR and QR are 41% and 35.3%. The solvency ratio is seen from the average DR and DER of 80.3% and 430%. This condition shows the debt ratio and debt to equity ratio of PT. Garuda Indonesia Tbk is not in a good condition. Profitability ratio of PT. Garuda Indonesia Tbk seen from the average Gross Profit Margin (GPM), Net Profit Margin (NPM), Return On Investment (ROI) and Return On Equity (ROE) of -2.6%, -3%, -3.3 %, -15.3% can be said to be unfavorable because it is below the expected industry standard. The activity ratio of PT. Garuda Indonesia can be seen from the average TATO is 106.3%, this condition is not good and tends to change every year. Therefore PT. Garuda Indonesia should focus on increasing the frequency of flights on both domestic and international as well as maintaining the level of accuracy of the flight (on time performance / OTP) to improve the financial performance of PT. Garuda Indonesia.
Keywords:
Financial Performance, Financial Ratio, Garuda Indonesia, Horizontal Method 1. Introduction
1.1. Background
The aviation industry is one of global industries which play a major role in this world and continues to grow rapidly. The industry becomes a large and growing industry which facilitates he growth of economy, international investment, world trade, as well as tourism. As time passes, aviation industry not only used for the government, but also used as a type of business which known as commercial aviation. Commercial aviation is a part of aviation industry which specialized in operating aircraft for passengers and cargo. In Indonesia, there is one flag carrier that has a worldwide reputation in aviation industry which is Garuda Indonesia. It is the pioneer of airline company which was previously ruled by the government of Indonesia but now it has become a public company. Commonly recognized as PT. Garuda Indonesia (Persero), Tbk. It is the official flag carrier of Indonesia and serves as a full service airline. It is the largest airline in Southeast Asia. Garuda Indonesia is one of the largest airlines in indonesia and owned by BUMN (Badan Usaha Milik Negara). since decided to IPO (Initial Public Offering) in 2011, It’s expected that the company's financial performance is getting better. But the company's shares have decreased and suffer loss ever year.
1.2. Problem Identification
How is the financial performance of PT. Garuda Indonesia, Tbk in 2017-2019 ? 1.3. Research Objective
To analyze the financial performance of PT. Garuda Indonesia, Tbk in 2017-2019
26 1.4. Scope and Limitations
This study was based on problem identification the researcher will limit the scope of research to calculation of the liquidity, solvency, profitability, activity ratio to determine the performance of companies that have gone public on the indonesia stock exchange.
2. Review
2.1. Financial Statements
According to Harry (2016) financial statements are the result of an accounting process used to communicate financial data or company activities to interested parties. In other words, to show the condition of the company's financial health. Financial statements are basically the result of an accounting process that can be used as a tool to communicate financial data or company activities to interested parties. Financial reports as an information tool that connects the company with interested parties, which shows the company's financial health condition and company performance.
2.2. Financial Ratio
Figures obtained from the results of comparisons between one financial statement item and another that has a relevant and significant relationship. Comparisons can be made from one item to another in a financial statement or between items that exist in the financial statements. As liquidity ratio, solven cy ratio, profitability ratio, activity ratio (Harry, 2016).
a. Liquidity ratio. The liquidity ratio explains the company's ability to pay off short-term debt. A high level of liquidity indicates that the ability to pay off short-term debt is getting higher too.
b. Solvency ratio. The solvency ratio explains the use of debt to finance a portion of the company's assets.
c. Debt financing has an impact on the company because debt has a fixed burde
d. Profitability ratio. The company's fundamental performance is viewed from the level of efficiency and effectiveness of the company's operations in generating profits. conceptually, it can be explained by the value determined by the price of shares traded on the capital market. This quality relationship shows that if the company's management performance is measured using profitability dimensions in good condition, it will have a positive impact on investors' decisions in the capital market to invest in the form of equity participation.
e. Activity ratio. ratio to measure how efficiently the company uses company assets. These ratios all use comparisons between the level of sales and the investment in several assets. The assumption is that there is a relationship between sales and these various assets.
2.3. Financial Performance
In general, financial performance is a description of the financial condition of a company as assessed by financial analysis tools, so that it can be seen about the good and bad financial condition of a company that reflects the company's success in achieving its goals.
3. Methodology
This research uses qualitative descriptive type. The data of this researched based on secondary data. The information required collected through the financial statement report of PT. Garuda Indonesia. And this research used horizontal method.
3.1. Analysis Path
Figure 1. Path Analysis
Financial Performance PT. Garuda Indonesia
(PERSERO) Tbk PT. Garuda Indonesia
(PERSERO) Tbk
Financial Statement
Financial Ratio Analysis
27 3.2. Operational Definition Variabel
Tabel 1. Operational Definition
No Variabel Operational Definition Indicator
Liquidity is a composition that shows the value of current assets and debts. This ratio is measured by dividing the share of total current assets by current liabilities, and the
measurement results are called ratio data.
Quick ratio
1 Liquidity
Cash ratio The solvency ratio shows the company's ability to meet its
short-term and long-term liabilities by using the company's assets. This ratio is measured by proxying the portion of debt to the company's assets or equity and the measurement
results of this variable are called ratio data.
Debt ratio
2 Solvency
Debt to Equity ratio
Profitability ratio is the company's ability to seek profit.
This ratio also provides the level of effectiveness of the company's management.
Measurement of the profitability ratio by proxying the level of profit after tax (EAT) with various sources of
funds (assets, investment, and own capital)
Net Profit Margin
3 Profitability
Gross Profit Margin
ROI ROE
4 Activity
The activity ratio is the company's ability to optimize and the size of its assets. including to measure the level of efficiency of the company in utilizing existing resources.
The measurement is done by comparing the level of sales with accounts receivable, merchandise inventory, working
capital, fixed assets and total assets. The result of the measurement of this variable is called the ratio data. The
following types of activity ratios include: Accounts Receivable Turnover, Inventory Turnover, Working
Capital Turnover, Total Asset Turnover.
Total Asset Turnover
28 3.3. Result
Tabel 2. Recapitulation Ratio Of PT Garuda Indonesia Tbk Periode 2017-2019
Keterangan Tahun
2017 2018 2019
Rasio Likuiditas
Current ratio 51% 37% 35%
Quick ratio 45% 31% 30%
Rasio Solvabilitas
Debt to ratio 75% 82% 84%
Debt to Equity 301% 471% 518%
Rasio Profitabilitas
NPM -5% -4% 0%
GPM -4% -5% 1%
ROI -6% -4% 0%
ROE -23% -24% 1%
Rasio Aktivitas
TATO 111% 105% 103%
Sumber: data diolah, 2020 4. Discussion
Following the results recapitulation ratio of the financial performance analysis of PT. Garuda Indonesia Tbk for the period 2017-2019 :
Liquidity ratio: Based on table show that the negative trend experienced by PT. Garuda Indonesia on the liquidity ratio which tends to decline in 3 years from 2017-2019. The decrease in the liquidity ratio was driven by a significant increase in the company's current liabilities and the same thing happened on the side of the current assets which also experienced an increase, but with a decrease in the percentage of the liquidity ratio it explained that the company was not yet able to cover its current debts with the assets it had. by PT. Garuda Indonesia, this shows that the company is in a poor condition in managing its obligations (Banne et al., 2002).
Solvency ratio: Based on table it can be seen that the solvency ratio of PT. Garuda Indonesia shows an increase in the last 3 years 2017-2019. This increase in ratio is known from the significant increase in total debt and total assets from 2017-2019 but from the capital side, this condition has decreased, explaining that the solvency ratio of PT. Garuda Indonesia is not good because of the very large debt and exceeds the assets and capital owned by the company which if this happens every year it is feared that it will bankruptcy at PT. Garuda Indonesia
Profitability ratio: NPM (Net Profit Margin) profitability ratio of PT. Garuda Indonesia has experienced good progress in 2017-2019 PT. Garuda Indonesia suffered a loss of -5, -4.0 which the NPM was gradually moving towards a positive direction to generate profit for the steakholders. GPM (Gross Profit Margin) PT.
Garuda Indonesia shows a fluctuating trend in the last 3 years. This condition is not good for companies that have IPO on the stock exchange. The increase in sales is quite good but it is not followed by a decrease in the cost and debt of the company which is getting bigger every year seeing this management of PT. Garuda Indonesia has a duty, namely to be more efficient and effective in managing the company's operations so that future profits / profits for steakholders. ROI (Return on investement) in table shows a gradual increase from negative trend gradually positive, PT. Garuda Indonesia was quite successful in investing in the company's profit-generating assets. ROE (Return on equity) shows a fluctuating trend where in 2017-2018 it experienced an increase then fell positively in 2019 this was due to the company's losses in 2017-2018 which had an effect on the ratio of rewards to steakholders.
Activity ratio performance: This performance ratio shows that the company is not good at managing current assets against the company's operating income as seen in the table where the activity ratio tends to decline from 2017-2019, the decline is caused by company investment which continues to increase every year.
29 5. Conclusion
Based on the results and discussion described above, the conclusions are obtained as follows:
1. The company's financial performance is seen from the liquidity ratio during the 2017-2019 period in an unfavorable condition where the company's debt is getting bigger and the company is less able to manage its debt.
2. The company's financial performance, seen from the solvency ratio during the 2017-2019 period, is in an unfavorable condition where the company's larger debt is not balanced with assets and increased capital owned by the company.
3. The company's financial performance is seen from the profitability ratio during the 2017-2019 period, the conditions are not good, seen from the NPM, ROI, GPM and ROE which are still fluctuating.
4. The company's financial performance is seen from the activity ratio during the 2017-2019 period in a bad condition which tends to decrease every year
6. Recommendation
Based on the test results and conclusions as described above, the researcher has made three recommendations to improve the financial performance of PT. Garuda Indonesia:
1. PT. Garuda Indonesia Tbk must minimize the amount of debt it owns so as not to exceed the company's high assets and capital and expenses.
2. PT. Garuda Indonesia Tbk must be more efficient in using company assets and capital so that it can reduce company costs, because efficiency on costs can lead to better company profitability.
3. The increasing in the number of passengers, the production capacity and the amount of cargo affect biggest part of net income that increase the number of profitability ratio that influence the financial performance of PT. Garuda Indonesia, therefore PT. Garuda Indonesia should focus on increasing the frequency of flights on both domestic and international as well as maintaining the level of accuracy of the flight (on time performance / OTP) to improve the financial performance of PT. Garuda Indonesia.
References
Banne, V. R., Kalangi, J. B., Wangke, S. J. C., & Program, M. (2002). Analysis of Financial Health Level of Pt . Garuda Indonesia Based on Financial Aspect of Keputusan Menteri Badan Usaha Milik Negara Nomor : Kep-100 / Mbu / 2002 Analisa Tingkat Kesehatan Keuangan Pt . Garuda Indonesia Berdasarkan Aspek Keuangan Dari Keput. 7(3).
Harry. (2016). financial ratio for business (Adipramono (ed.)). tanpa perantara.
