Tugas SoftSkill Bahasa Inggris
BAB I
INTRODUCTION
1.1. Background
Every
company must have its own financial reports for the financial reports is a
mandatory element. Financial statements the function records all assets and
liability during the period. With the financial performance report of the
companies also will be visible, if the financial statements of the company is
good. Then it can be inferred that the company belongs to a healthy company in
terms of financials.
Each
company in the conduct of its business must aim to maximize the well being of
the owner through decision or investment policies, funding decisions, and the
dividend decisions is reflected in the price of shares in the capital market.
If seen from the view point of financial management. This often interpreted as
an attempt to maximize the value of the company. To fulfill the above company
has a need of funds to pay for some financing for the company’s operations, and
to finance the fund needs a problem the company has two sources of financing
that fund sourced from the company internal capital formed or produced your
self within the company. Such a s capital comes from the profits not
distributed or commonly called spider
was arrested. While the external source of funding comes from additional
capital from new owners or the emission of shares, capital loans, and the sales
of bond.
The company has shortage of funds could
be addressed by means of entering new capital from company owners or can also
make borrowing from outside parties. When it is done means company has
leverage. Financial it self can be defined as the ability of the company to pay
the debt. Financial leverage has an impact on return on equity, if financial
leverage increases automatically any roe will increases due to increased
financial leverage result in the company assets also increased and expected
profits generated by the company will also increased. Roe is comparison between
the net profit and equity is one of the two factors in determining growth
companies ( foot reflexology : Bodie, Kane, Mercus ; 2002 ). It can be said
also as the company ability to provide a return to shareholders over te capital
that had been planted by investors.
Return on equity which is the comparison
between te net profit and equity is one of the two basic factors in determining
the growth rate of the company’s revenue. There are two sides in using roe,
sometimes assumed that roe expected to come from roe. But roe is high in the
past do not guarantee future roe still remains high. Decrease in roe is proof
that new investment in the company is generating a lower roe from old
investment the most important things from the analysis is nothing to receive
the historical value in the future.
With the amounts loans that the big risk
does not mean the debt. Hopefully the management of the company can manage as
effectively as possible the financial leverage as well as through the
appropriate calculations for the expected profit rate can be achieved so that
the maximum return sheet is to increased. This may be consideration for the
potential investor to embed investments in the company. Based on the background
of the above I would like to create articles about “ Analysis The Influence Of
Financial leverage Aganst The Return On Equity In PT. Indofood Sukses Makmur
Tbk in period 2007-2011 “
1.2. Problem
Whether
financial leverage effect on return on equity in pt. Indofood sukses makmur tbk
in period 2009-2011 ?
1.3. Purpose
The
purpose of this study is to provide informations on whether financial leverage
effect on return on equity in pt. Indofood sukses makmur tbk in period
2009-2011
1.4. Advantages
1.4.1. For Author
For
author can better understand more about the relationship between financial
leverage against the return on equity.
1.4.2. For Readers
This
research result can be a material consideration for the prospective investors
who want to invest in company.
1.5. Approach
1.5.1. Research Library
Research
done by gathering information through books, journals, internet related theme
writing
1.5.2. Field Research
In
this study, method of collecting data using in the form of secondary financial
statements related to the company was obtained from the website http://www.indofood.co.id
and the Indonesia stock exchange (idx)
BAB II
DISCUSSION
2.1. Definition Of Profit
According to Zaki Baridwan in his book
"Intermediate Accounting" gain understanding of "increases in
capital (net assets) derived from the transaction side or infrequent
transactions of a business entity, and of all transactions or other events
affecting the entity during a period except those arising from income (revenue)
or investments by owners ". Understanding the profit according to Sofyan
Harahap Syafri in his book "Accounting Theory" is as follows:
"Gains (profit) is increasing the value of equity from transactions that
are incidental and not the primary activity of the entity transactions or other
events affecting the entity during a period except those from certain of
results or investment of the owner ".
Profit company is basically a reflection
of the success of the company's own purpose, which is profit oriented. Profit
planning is a process of financial planning is very important for the company.
By planning financial managers can determine the company's activities to
achieve specified earnings targets.
When viewed from its shape, according to
Charles T. Horngren (1997:45) profit can be divided into:
1.
Earning Before Interest Tax
Operating
profit / gross profit / Earnings before interest tax (EBIT) is operating income
for the accounting period less all operating expenses, which includes the cost
of production.
2.
Earning After Tax
Is
operating income plus non-operating income such as interest income, net of
non-operating expenses such as interest expense net of corporate income tax.
2.2. Definition Of Financial Leverage
Leverage can be defined as the use of
assets or funds in which to use the company must cover fixed costs or pay a
fixed load. If In the "operating leverage" the use of assets with
fixed costs is the hope that the revenue generated by the use of the assets
will be sufficient to cover fixed costs and variable costs. If all the funds
invested in the company from shareholders in the form of common stock, the
company will not issue a fixed load of cash on a periodic basis for financing
or expenditures. But since most companies use debt (especially long-term debt)
then the company will bear the burden in the form of cash each interest payment
period regardless of whether the company makes a profit or loss.
According to Agnes Sawir (2004:10)
"Financial leverage is the use of financial resources cause permanent
financial burden.". To analyze the level of financial leverage most
optimum, it is necessary to understand the relationship between EPS (Earning
Per Share) with EBIT (Earning Before Interest and Taxes) in various alternative
funding.
Meanwhile, according to Martin, Petty,
Keown, and Scott (2002:472) "Financial leverage can also mean finance part
of the company assets with fixed-income securities (limited) with the hope of
improving the final returns for our shareholders." The greater the debt,
the more greater financial leverage, which means the greater the degree of financial
fixed costs (financial fixed cost) is added to the fixed costs of operation.
Then financial leverage is a measure that indicates the extent to which
fixed-income securities (debt and preferred stock is used in the company's
capital structure.
Companies that have a higher operating
leverage and high financial leverage basically potentially reap large profits
at the same time are likely to suffer losses as well as large. Thus, leverage
can be seen as the risks faced by a company. The greater the debt, the greater
the financial leverage, which means the greater the degree of financial fixed
costs (financial fixed cost) is added to the fixed costs of operation.
2.3. Definition Of Return On Equity
Return On Equity (ROE) have many same
sense but basically derived from a similar idea and ROE also has other terms
are known in finance that will be expressed as follows:
"The ratio of net profit after tax
to equity (Return On Net Worth / ROE) measures the rate of return on
shareholders' investments." Houston and Brigham (2008:101) argues that,
"Return On Equity (ROE) is the ratio of net income to common equity:
measures the rate of return on common stockholders' investment. "So, ROE
can be said as the company's ability to provide profits for shareholders on the
capital that has been invested by the investor. So the ROE is profit to the
shareholders. From the above definition it is clear that ROE concerning the
interests of the owners / shareholders.
2.4. Influence Financial Leverage With Return
On Equity
According to Weston and Brigham
(2008:300), financial leverage will affect the return on equity for its shareholders.
Companies with high debt ratios are higher risk, but also the expected rate of
return is higher. Conversely, companies with low debt risk risk not great, but
the chance to double the equity is also small. Dwi Prastowo (2011) Argues that
one of the reasons why companies operate is to generate profits for
shareholders, measure the success of this achievement is the return on common
stock.
Companies that use financial leverage expect
the benefits to be received from the use of the funds financing activities is
greater than the load that would remain their responsibility from the use of
these funds. In good condition or stable, the use of financial leverage can be
a positive influence in the form of an increase in ROE. This is because the
rate of return to the operating profit of the company is greater than the load
equipment. While the use of financial leverage can negatively impact a decrease
in ROE, if it is used in a less stable economic conditions.
This is due to the negative effect of
the return on investment for small and corporate profits plus interest charges
that must be paid, then the use of financial leverage may cause the company's
financial risks.
2.5. Analiysis Tools
·
Uji t
This analysis used to
know whether independent variabel (x) Influential significantly against the
dependent variabel (y).
Based on the regression results in
Table 4.8 above, the regression model that is formed can be described in the
following equation:
Y = 10.672
+ 0,019X
Explanation
of the above regression model can be described as follows:
1.
Constants obtained for 10,672. This shows if all variables in the form of debt
financing or financial leverage is zero, then the profitability or ROE will be
as big as 10,672%.
2.
Regression
coefficient of 0.019 was obtained for financial leverage. This shows if the
funding of the debt or the Financial leverage increases by 1%, assuming other
variables fixed value, it will be followed by a rise in profitability or ROE of
0.019%.
Of the t
test above shows the results of 0.106 t_hitung smaller than t_tabel of 2.101
with a significance level of 0.917 is greater than 0.05. It can be concluded
that the funding coming from debt or financial leverage positive influence on
profitabilitiy or Roe. So that shows with greater use of funding from the debt,
it will be followed by a rise in the profitability of the company.
BAB III
CONCLUSION
3.1. Conclusion
Based on the research and discussion
that has been done in previous chapters, it can be concluded as follows There
is a positive relationship between financial leverage on return on equity (ROE)
at PT. Indofood Sukses Makmur, Tbk. It means that with the greater use of
funding from the debt, it will be followed by a rise in the profitability of
the company. Effects of changes in financial leverage on ROE of the company is
not significant.
3.2. Suggestion
With the growing amount of loans made,
the greater the risk of the debt was paid off. Expected the company can manage
as effectively as possible with financial leverage as well as through the exact
calculation that the expected rate of return can be achieved so that the
maximum profit for shareholders can be further increased.
BAB
IV
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Baridwan, Zaki. 2003. Intermediate Accounting. Yogyakarta :
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Brigham, Houston. 2006. Dasar
Dasar Manajemen Keuangan 2. Edisi 10 : Salemba empat.
Harahap, Sofyan Syafri. 1993. Teori Akuntansi. Jakarta : Raja Grafindo
Persada.
J. Supranto. 2001. Statistik. Edisi 6. Jakarta
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Agnes. 2004. Kebijakan Pendanaan dan
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Scott,
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