Cash Flow Ratio Analysis as a Measuring Tool for The Company's Financial Performance at PT. Astra International Tbk
DOI:
https://doi.org/10.55606/iceb.v1i2.107Keywords:
Cash, Cash Flow Ratio, Cash Flow Statement, and Financial Performance.Abstract
The research question concerns the cash flow ratio as a measure of the company's financial success at PT. Astra Indonesia Tbk during 2018 - 2021. This research aims to examine PT. Astra International Tbk's cash flow ratio as a measure of the company's financial performance for the period 2018-2021. The research methodology employed in this method is descriptive quantitative research, or research techniques that describe data as numerical values. This research provided use of secondary data, mainly information gathered from the official website of the Indonesia Stock Exchange's records or archives. In 2018-2021, a ratio of operating cash flow to current obligations less than one indicates that the situation is not favorable. In 2018-2019, a ratio of operating cash flow to interest payments that is more than 1 is favorable. In 2018-2020, a ratio of operational cash flow to capital expenditure below one indicates that the situation is not good. In 2018-2021, if the ratio of operating cash flow to total debt is less than 1, the situation is not good. In the period between 2018 and 2021, the ratio of operating cash flow to net profit is good since it can exceed 1. The conclusion that can be drawn from the findings of this research is that the results of the five cash flow ratios listed above must still be examined, as values that are above the standard ratio are only 2 ratios and those that are below the standard ratio are 3 ratios. It indicates that PT. Astra International Tbk's financial performance is categorized as poor because it is unable to effectively manage its cash flow, resulting in an insufficient turnover between cash in and cash out so that in the long term PT. Astra will experience losses.
References
Article in a Journal:
Afriani, R. (2015). Analysis of Cash Flow Statement to Measure Financial Performance at Pt. Bakrie Telekom Tbk (Doctoral Dissertation, Pasir Pengaraian University).
Arota, P. S., Morasa, J., & Wokas, H. N. (2019). Cash Flow Ratio Analysis to Assess Financial Performance of Pt. Hanjaya Mandala Sampoerna Tbk 2014-2018. EMBA Journal: Journal of Economic Research, Management, Business And Accounting, 7(3).
Avisiena, H. Analysis of Cash Flow Ratio as a Measuring Tool for Financial Performance at Jakarta Islamic Hospital Sukapura (Bachelor's thesis, Jakarta: FITK UIN Syarif Hidayatullah Jakarta).
Azmi, N. (2021). Analysis of Cash Flow Statement in Assessing Company Financial Performance (Case Study of PT Dwi Mitra Daya Riau) (Doctoral dissertation, North Sumatra State Islamic University Medan).
Handayani, P. A. (2016). Review of Cash Flow Statement at PT Bank Tabungan Negara (Persero) Tbk. Purwakarta Branch Office (Doctoral dissertation, STIE Equity).
Minor, D. M. P. C. (2020). Application of Financial Statement Preparation in Small and Medium Enterprises Based on Micro Entity Financial Accounting Standards.
Corompis, N. C., Aznedra, A., & Son, R. E. (2021). Cash Flow Ratio Analysis in Measuring Financial Performance of Pt Matahari Departement Store Tbk Listed In Bei Period 2017-2019. MEASUREMENT: Journal of the Accounting Study Program, 15(1), 28-32.
Lalujan, B. K., Tamengkel, L. F., & Tarore, H. S. (2016). Analysis of Cash Flow Statement to Measure Liquidity in PT. BTPN, Tbk. JOURNAL OF BUSINESS ADMINISTRATION (JAB), 4(4).
Maruta, H. (2017). Definition, Usefulness, Purpose and Steps for Preparing a Cash Flow Statement. JAS (Journal of Sharia Accounting), 1(2), 239-257.
Meisari, A. (2019). Analysis of Cash Flow Statement as a Measuring Tool for Investment Decisions at PT. Unilever Indonesia Tbk in 2015-2018 (Doctoral dissertation, IAIN BENGKULU).
Meldawati, F. A. (2013). Cash Flow Ratio Analysis to Measure Financial Performance at Pt Kalbe Farma Tbk. Jurnal STIE KBP Padang.
Mulyani, S. (2013). Cash Flow Ratio Analysis as a Measuring Tool for The Company's Financial Performance. Journal of economic &business dynamics, 10(1).
Ramadhini, F., & Ardhi, Q. Cash Flow Ratio Analysis to Assess Financial Performance in the Coal Mining Sub-Sector on the Indonesia Stock Exchange. Journal of Scientific Studies of Accounting, Faculty of Economics, UNTAN (KIAFE), 11(1), 122-135.
Ratningsih, T. A. (2017). Financial Performance Analysis Using Profitability Ratio And Activity Ratio In PT. Bata, Tbk. Scientific Journal of Management, Faculty of Economics (JIMFE), 3(2), 14-27.
Rengganis, O., Valianti, R. M., & Oktariansyah, O. (2020). Financial Performance Analysis at PT. Regional Development Bank of South Sumatra and Bangka Belitung. Journal of Media Accounting (Mediation), 2(2), 120.
Sanjaya, S., & Rizky, M. F. (2018). Profitability Analysis in Assessing Financial Performance at PT. Taspen (Persero) Medan. KITABAH: Journal of Islamic Accounting and Finance.
Sulindawati, N. L. G. E. (2013). Statement Of Cashflow Analysis To Evaluate Cooperatives' Ability To Generate Cash And Cash Equivalents. IKA Journal, 11(2).
Tukunang, Jeferson. (2014). Application of Cash Flow Statement Based on SAK-ETAP in UD. Grace's Blessing. EMBA Journal: Journal of Economic, Management, Business and Accounting Research, 2(2).
Warongan, M. S. J., Ilat, V., & Gerungai, N. (2018). Cash Flow Ratio Analysis in Assessing Financial Performance at PT. PLN (Persero) Suluttenggo Region. Going Concern: Journal of Accounting Research, 13(02). Pg 454.
Herry. (2015). Financial Statement Analysis. Grasindo. Jakarta.
F. I. (2018). Introduction to Financial Performance. Alphabet. Bandung.
Jumingan. (2014). Financial Statement Analysis. Jakarta. Earth Script.
Sugiyono. (2016). Quantitative, Qualitative and R&D. Bandung Methods. Alphabet.
Link / URL:
www.astra.co.id.
www.idx.co.id.
