NTRODUCTION Indonesia is a rich country with its resources. Not only oil and gas, but Indonesia also had been a producer of mining and agricultural products such as rubber, tin, tea, coffee, spices and timber. In 2002, timber is one of the key export for “non-migas” (non oil and gas) commodities to provide foreign trades. IFP, Indonesia is one of foreign timber logging operate in Kalimantan (Borneo) island. With Kristin Daniel as the planner manager since 2001. IFP Ltd did business more than 25 countries in the world but Indonesia is the only one country it has business in South East Asia. The company has original business in trading coal, metals and shipping industry. SWOT ANALYSIS Strength The company use simplest …show more content…
The condition could be happen from the difficulty of transporting and shipping timber from the forest to the nearest port. When the logging activity keep continue, it caused IFP product stocked much more than the rotation of selling activity. DEBT MANAGEMENT RATIO DEBT RATIO = Total Liabilities / total assets = 2,980.00 / 10,080.00 = 30% Average Company = 40% IFP, Indonesia shows that the debt ratio are only 30%, where it means creditors only supplies one third of the company's total financing. This is consider low, where average company usually have 40% debt ratio. This condition always preferred by creditor in order to lend money. The lower the ratio, the higher the cushion against the creditors' losses in event of liquidation. And the creditor would have willing to lend more money to a company which has low debt ratio than the high one. In other hand, this condition might not attract stockholders. Stockholders always want higher leverage which magnifies expected earnings. PROFITABILITY RATIO PROFIT MARGIN ON SALES = Net income available to stockholders / sales = 860.00 / 11,420.00 = 8% Average companies = 5% IFP, Indonesia profit margin ratio is above the industry average. This could be resulted from the company able to press the operational cost as low as they could. Labour cost in Indonesia is as low as USD 4 per day. However a company with high profit margin, might also caused the
The current cash debt ratio only measures the ability of a firm 's cash, along with investments easily converted into cash, to pay its short-term obligations. In 2007, the company has a current cash debt ratio greater than 1 and is in better financial shape than in 2006, when the ratio was less than 1.
The company’s financial statements appear to be quite clear and strong as compared to the industry. Still the operating costs are high but average as compared with the industry. The reasons behind the prices might be the high cost of commodities,
Some key points of this paper are going to be about the development of civilization, geography, social structure, Hierarchy, and where the Ancient Egyptian civilization began.
The Current Ratio indicates if a company is capable of repaying its debits and liabilities. If the percentage of the ratio is less than 1 it suggests that the company will not be able to repay its debts, the higher the ratio is above 1, indicates that the company is in good health and will be able to repay its debts. It seems that CanGo is in a better position to pay of its debts compared to Amazon since Amazon’s Current Ratio is 1.33 and CanGo’s Ratio is 5.38. If a company cannot pay its debts, it does not necessarily mean that it file for
The debt ratio explains the amount of debt maintained by both respective companies, and represents the amount of debt used by the company to finance business operations and is
Credit ratio requirement: The company covenants that it will not permit current assets at any time to be less than, for example, 150 percent of current liabilities.
When comparing the debt-to-assets ratio of McDonalds and Wendys, you have to divide the firms total liabilities by their total assets. Essentially, the debt-to-assets ratio is the primary indicator of the firms debt management. As the ratio increases or decreases, it indicates the firms changing reliance on borrowed resources. The lower the ratio the more efficient the firm will be able to
In Macbeth, originally written by William Shakespeare in the 16th century, masculinity is a reoccurring theme in the play. Shakespeare tells the story of a man whose ambition overpowers his loyal qualities and later causes him to fall as a leader. Throughout the play, Macbeth and his wife, Lady Macbeth both question what it is to be a man and to what extent masculinity should be played out in order to achieve success. Shakespeare shows the negative progression of Macbeth from being an innocent thane who would one day like to become the king, to a power hungry and evil leader who is willing to terminate anything that gets into his way of the throne. In Macbeth, stereotypical ideas about masculinity determine the fate of the characters because
Debt-to Asset Ratio indicates that 48% of AMT's assets money comes from creditors (1985). In addition, the low current ration implies lack of liquidity (1.78 for 1986). Therefore, the company needs to rely heavily on outside financing to meet maturing obligations since there is no operating income.
As the creditors’ view, they prefer the high current ratio. The current ratio provides the best single indicator of the extent, which assets that are expected to be converted to cash fairly quickly cover the claims of short-term creditors. However, consider the current ratio from the perspective of a shareholder. A high current ratio could mean that the company has a lot of money tied up in nonproductive assets.
Stockholders will be happy that the managers of the firm are not wasting any money and working hard to pay for the interest expense for the debt holders; as a default brings the company to the brink of bankruptcy. In addition issuing debts will minimize or prevent any unwanted incentives giving room for the better growth of the company.
Debt ratio helps in comparing total assets and total liabilities. If you have more liabilities it means you have lesser equity and therefore an increased leverage position.
Indonesia is a member of the World Trade Organization, and therefore is committed to lowering its trade barriers. The WTO publishes statistics on tariffs that illustrate that, in general, the Indonesian trade market
It is important to create a context when looking at funding structure as each industry has different debt to equity ratio benchmarks, as some industries tend to use more debt financing than others. A debt ratio of .5 means that there are half as many liabilities than there is equity. In other words, the assets of the company are funded 2-to-1 by investors to creditors. This means that investors own 66.6 cents of every dollar of company assets while creditors only own 33.3 cents on the dollar.A debt to equity ratio of 1 would mean that investors and creditors have an equal stake in the business assets. A lower debt to equity ratio usually implies a more financially stable business. Companies with a higher debt to equity ratio are considered