MM 5007

FINANCIAL MANAGEMENT

KRAKATAU STEEL CASE

SYNDICATE 3
KRISTIANTO WICAKSANA (29114305)
JONATHAN SOMBA (29114307)
FLORENTINA ANDRE (29114312)
RATNA SARI RADITHA NING TYAS (29114357)

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2015

EXECUTIVE SUMMARY

Short brief of project

I. Objective
Bambang Supriyatno wants to invest in Krakatau Steel group. Before he
put his money on Krakatau Steel group, he needs to check the financial
ratios and also the BUMN scoring. These assessments are needed to
determine whether PT Krakatau Steel is a good place to invest.
II. Analysis
Bambang Supriyatno use several ratios to compare Krakatau Steel financial
performance to other similar industry. The indicators that have been use to
compare are shown below

After analyzing these indicators, Bambang Supriyatno used the BUMN Scoring.
The BUMN Scoring is described in several figures below

The scoring result of Krakatau Steel is shown below

In Million

Current Asset
Net Fixed Asset
Current Liability
Inventory
Total Asset
Total Liabilites
Common Stock Equity
Total Equity

Cash
Account Receivables
Net Revenues
Cost Of Goods Sold
Gross Profit
Total Operating Expenses
Income FromOperation
Other Income
Net Income
Earnings Per Share
8,631,162
3,378,928
6,130,353
4,871,981
12,795,803
6,949,013
2,000,000
12,795,803

12,287,724
4,389,320
6,930,713
6,549,776
17,584,059
8,158,514
7,887,500
9,293,915

Krakatau Steel
2009
2010
1,759,964
4,193,598
1,642,212
1,184,338
16,913,535
14,856,156
15,728,146
12,621,376
1,185,389
2,234,780
1,159,449
1,241,851
25,940
992,929
442,719
384,219
494,672
1,062,683
39
81
541,001,941
255,836,745
488,515,367
234,313,675
970,737,084
496,451,412
820,000,000
645,713,287

709,597,600
246,469,275
419,815,817
556,893,664
1,074,569,612
428,856,325
820,000,000
474,285,672

PT Gunawan Dianjaya Steel

2009
2010
40,234,402
3,720,875
196,962,760
89,918,674
1,641,555,178 1,710,131,747
1,829,359
1,413,250
(187,809,124)
296,880,791
85,622,086
90,756,876
(273,431,210)
206,123,915
64,196,140
8,525,507
150,055,121
171,427,614
(26)
21

217,575,710
19,191,931
75,723,707
78,938,647
353,951,009
82,262,329
75,000,000
271,688,680

285,524,089
17,618,852
103,140,872
116,709,942
411,281,598
111,147,338
75,000,000
300,134,260

PT Jaya Pari Steel

2009
2010
1,429,771
12,552,313
127,947,069
93,613,470
302,868,416
427,792,535
267,459,907
372,059,150
35,408,508
55,733,384
15,103,228
17,313,898
20,305,280
38,419,485
(17,574,942)
251,316
1,917,377
28,445,580
2.6
37.93

BUMN SCORING PTKRAKATAU STEEL

ROE
ROI
Cash Ratio
Current Ratio
Collection Period
Inventory Turnover
Total Equity / Total A sset
Total A sset Turnover
Total
SCORING

DEBT
Debt to Equity
Debt to Capital
LIQUIDITY
Current Ratio
Quick Ratio
Cash Ratio
Collection Period
Inventory Turnover
Total A sset Turnover
Total Equity / Total A sset

REVENUE
Gross Profit margin
Operating Profit Margin
Net Profit Margin
COGS to Revenue
Operating Expenses to Revenue
MARKET
Earnings per share
Book value per share
RETURN
Return on A ssets
Return on Equity
Return on Investment

20
2
4
5
5
4
4
1.5
45.5
A

18
6
5
5
5
3
4
1.5
47.5

177.29%
82.79%
60.51%
29.1
160.92
0.84
0.53

140.79%
61.32%
28.71%
35.4
105.14
1.32
1

6.04%
13.47%
7.53%

3.87%
24.73%
0.28%
87.78%
103.44%

81
500

39
500

54.31%
347.45%

15.04%
6.68%
7.15%
84.96%
8.36%

7.01%
0.15%
2.92%
92.99%
6.86%

CAGR

12.22%
16.19%
45.18%
-9.39%
23.72%
-20.05%
-27.30%

27.14%
-45.44%

25.03%
-26.19%
422.67%

46.50%
560.14%
56.39%
-4.42%
10.43%

BBB

20
0
1
4
5
5
4
1.5
40.5

110.74%
62.78%
8.24%
43.8
52.10
1.69
0.67

76.88%
60.54%

15.46%
18.30%
-38.25%

(26)
100

-11.44%
-16.66%
9.14%
0.11%
5.22%

20
15
0
5
5
4
4
1.5
54.5

169.03%
36.37%
0.89%
19.2
118.86
1.59
0.44

90.42%
52.30%

15.95%
20.91%
24.89%

21
100

17.36%
12.05%
10.02%
0.08%
5.31%

23.54%
-23.88%
-67.20%
-33.80%
51.04%
-2.99%
-18.54%

8.45%
-7.06%

1.59%
6.88%
#NUM!

CAGR
#NUM!
#NUM!
4.72%
-13.89%
0.87%

5.5
5
0
5
3
4
4
1.5
28

287.33%
183.08%
1.89%
154.2
95.13
0.86
0.77

30.28%
109.68%

0.54%
2.56%
6.07%

2.6
100

11.69%
6.70%
0.63%
88.31%
4.99%

10.59%
16.24%

20
7.5
2
5
4.5
4
4
1.5
48.5

276.83% -1.84%
163.67% -5.45%
12.17% 153.88%
79.9 -28.03%
99.58
2.31%
1.04 10.25%
0.73 -2.50%

37.03%
148.20%

6.92% 257.32%
37.93% 285.17%
9.76% 26.85%

37.93
100

CAGR
13.03%
5.56%
8.98% 15.74%
6.65% 224.09%
86.97% -0.76%
4.05% -9.91%

Krakatau Steel Gross Profit, Operating Profit Margin, and also Net Profit
Margin are increasing. Meanwhile, the Inventory Turnover is much greater
than the competitor and also The Total Asset Turnover is also declining.
Based on these conditions, the Krakatau Steel is in a good shape.

III.

Conclusion and Recommendation

3.1 Conclusion
From those Krakatau Steel conditions above, we can see that the Krakatau
Steel is a good place to invest. On paper, The Krakatau Steels profitability
ratio is quite good but compared to other steel industry, the Krakatau
Steels number is much below to its competitors. Moreover, we can see
that The Krakatau Steel BUMN Scoring is at level A which is indicated as a
healthy company.
3.2 Recommendation :
Bambang Supriyatno should invest to Krakatau Steel as their score is
better than the other Industries. As we can see, year 2009 and 2010,
Krakatau Steel has grade A.