Quick Financial Health Assessment for Specific Company Base on Dam Business (Case Study: Perum Jasa Tirta II)

Abstract

Perum Jasa Tirta II (PJT II) is a State-Owned General Company engaged in dam and water resource development. As a state-owned enterprise, it must balance two competing interests: the government's benefit-oriented mandate and the responsibility to generate profits. PJT II must be sustainable to achieve shareholder objectives while avoiding financial distress. The financial assessment is conducted using Economic Value-Added analysis to ascertain the company's actual performance and financial distress analysis based on the Altman Z-Score Model to determine an early warning if the company is experiencing financial distress. The research question is how the financial performance of Perum Jasa Tirta II using Altman Z-Score Analysis and Economic Value-Added Analysis. The research method used in this study is quantitative methods with primary and secondary data from Financial Report PJT II year 2015-2019.  According to Z-score analysis, PJT II was in the safe zone between 2015 and 2019, with an average score of 9.74 and a Compound Annual Growth Rate (CAGR) of 10%. The value of EVA was positive between 2015 and 2016, with an increase of 2.127% and a Compound Annual Growth Rate (CAGR) of 50%. Also, according to the Monte Carlo Simulation, the probability of EVA 0 is 34.47%. PJT II needs to maintain EBIT and equity, as these are the two major factors affecting EVA's value by adding revenue streams to increase profitability.

Keywords: Economic Value Added (EVA), Altman Z-Score, financial distress, financial performance, State-Owned Company, General Company