ANALYSIS OF FINANCIAL STATEMENT TO ASSESS AND COMPARE CORPORATE FINANCIAL PERFORMANCE (CASE STUDY AT PT. INDOSIAR KARYAMEDIA, TBK. AND PT. SURYA CITRAMEDIA, TBK.)

ZARWATI, ZARWATI (2013) ANALYSIS OF FINANCIAL STATEMENT TO ASSESS AND COMPARE CORPORATE FINANCIAL PERFORMANCE (CASE STUDY AT PT. INDOSIAR KARYAMEDIA, TBK. AND PT. SURYA CITRAMEDIA, TBK.). Masters thesis, Universitas Andalas.

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Abstract

Background of the Study Television is one of media information in the world that people like nowadays. Indonesian televisions are now entering the digital era. Need for quick and actual information makes partly Indonesian society to look for news for example; politics news, culture, and also to entertainment. Indonesian televisions make many kinds of fresh programs and get intellectual. Business opportunity at multimedia area is promising when now many private television companies begin to flourish in Indonesia. PT. Indosiar Karya Media, Tbk. (IDKM) and PT. Surya Citra Media, Tbk. (SCM) are example of the private television company in Indonesia. They are listed on the Indonesia Stock Exchange. PT. Indosiar Karya Media, Tbk. formerly was PT. Indovisual Citra Persada with the main goal of communication engaged in services. Since August 2003 to IDKM with the concept as the main television broadcasting business operations namely PT. Indosiar Visual Mandiri. PT.Indosiar Visual Mandiri is the Company’s Subsidiary of PT. Indosiar Karya Media, Tbk., it is a national private television station established in 1991 and started to broadcast in 1995. It was the fifth private national television station during that time which emerged with its very popular in-house production, which is quickly grabbing the attention of a wide audience. 3 PT. Surya Citra Media, Tbk. (SCM) has a concept of the development of its business on the basis of working together to achieve the targets. It is successful with its partners together, which ultimately can provide mutual benefits as well for them. The patterns of this partnership will continue the core business of each to be developed. With the incorporation of these skills and capabilities, the patterns acquired new force of mutual benefit to both parties. The main purpose behind its creation of PT. Surya Citra Media, Tbk. is to broaden the horizons of PT. Surya Citra Televisi (SCTV), one of the largest television broadcasting stations in Indonesia today. As a media broadcasting company, SCTV is restricted by law to operate solely and exclusively as a broadcasting company for which it was licensed for. Yet, the business prospects of an integrated multimedia services group are simply too promising to be ignored. Therefore, formation of SCM presents that the prospective opportunity with long term growth. These financial statements are important information for investors in making investment decisions. The financial statement is a very important tool to get information in relationship with financial position. Financial data would be more meaningful to the parties concerned if the data were compared for two periods or more, and further analyzed so as to obtain data that can support economic decision. Every company has financial statement that aims to provide information regarding the financial position, performance and changes in financial position of an enterprise that benefits a large number of users of financial statements in making economic decisions (Sundjaja and Barlian, 2003:76). 4 These financial statements are the media information that summarizes the company's activities. If this information is presented correctly, the information is very useful for anyone to make a decision about the company reported (Harahap, 2006:1). In assessing company, we need relevant information and determine performance measures right company. By analyzing the company's financial statements, we will get the correct and complete information on the performance of the company for shareholders or funders. In conducting analysis the relationship of the various items in the financial statements is the basis to be able to interpret financial condition and operating results of a company (Munawir, 1997:64). Analysis of financial statements consists of the review or study of the relationships and tendency or trend to determine the financial position and results of operations and the development of related companies (Munawir, 1997:35). Financial statement in a general consists of financial position statement, income statement, cash flow statement, and owner’s equity statement. Financial position statement gives information about assets, liabilities and equity of a company. Income statement gives information about income, costs and profit and loss acquired on that period. Cash flow statement gives information about input and output of company. There for, Owner’s equity statement gives information about changes of equity from company in that period. PT. Indosiar Karya Media, Tbk. and PT. Surya Citra Media, Tbk. can be achieved the effectiveness of the management and business management concerned to assess the corporate finance performance by conducting an analysis 5 of the company's financial statements. Performance is not considered satisfactory then the manager can evaluate the weak points and then set a better policy in the future. Performance is considered to have given a satisfactory result then the manager can maintain and even improve its. To assess or analyze The financial performance of a company, we can use a variety of financial ratios. The ratio is a tool that is expressed in relative or absolute terms to describe the specific relationship between single factors and other factors of a financial report (Alwi, 1994:107). Financial ratio analysis will provide assessment on the basis of data and information obtained from financial statements, which are shown as ratios or percentages (Handoko, 1995:398). Financial analysis is used financial statements to analyze the company's financial position and performance, and to assess financial performance in the future. The ratio is used to assess corporate finance performance are Liquidity ratio, Solvency ratio, Profitability ratio, and Activity ratio. Liquidity ratio is the ratio used to measure a company's ability to meet its short-term liabilities. Solvency ratio is the ratio to measure a company's ability to meet its long-term liabilities. Profitability ratio is the ratio of the used to measure the effectiveness of the company, the management in managing and running the company's operations primarily to generate maximum profits ratio of earnings to assets that generate those profits. There for, Activity ratio is used to measure the extent of the company's efficiency in using assets held for income. Based on the explanations that have been described above, the author chooses and taken the title of the research is: "ANALYSIS OF FINANCIAL 6 STATEMENTS TO ASSESS AND COMPARE CORPORATE FINANCIAL PERFORMANCE (Case Study at PT. Indosiar Karya Media, Tbk. and PT. Surya Citra Media, Tbk.)”.

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