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Improving Financial Health (Case of PT G)

Siti Nur’aini Nabila, Asep Darmansyah

Abstract


Abstract. PT G is a private family company that operates in the seafood industry. The company started with processing and exporting frozen shrimps, specializing in vannamei shrimp. PT G main branch only have general suspicion about that the financial health is doing bad, the need to be a confirmation of the general financial health, not only the profitability level. The financial health analysis was done by using financial ratios. The first indicator that the finance of the company isn’t healthy was the continuous loss that they experience and the retained loss that was carried through until 2018 with the value of minus 12 billion rupiah. As bad as the profitability level, the other financial ratios that indicate problem is the solvency ratios. Improving the financial health means turn the company retained loss must be turned into retained earnings which can be done by forecasting with financial target. There are two types of forecasting the internal and external. The end result is that the external target forecasting yields a more plausible solution to improve their financial situation that is to aim increase the sales by 5% each year, keeping the COGS by 87% and supporting it by switching capital structure by taking in long term debt.

Keywords: Financial Health, Financial Ratios, Forecast, Net Profit Margin, Retained Earning

 


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