Summary of Financial Ratios PT. Semen Gresik, Tbk.

Liquidity Ratio of PT. Semen Gresik, Tbk., have increasing year by year. But in Quick Ratio and also Cash Ratio, their ratio just increase until year 2008, but after that year, the ratio will be goes down but not too significantly. From that data, we can conclude that Liquidity of PT. Semen Gresik, Tbk., is good because overall data have ratio more than 1.

Efficiency Ratio of PT. Semen Gresik, Tbk., have fluctuate ratio in year by year. But for the overall, the company having high turnover. Leverage Ratio of PT. Semen Gresik Indonesia, Tbk., have decreasing year by year. It's mean that PT. Semen Gresik, Tbk., have good leverage and they can make decreasing of their debt ratios.

Profitability Ratio of PT. Semen Gresik, Tbk., for overall are increasing year by year. It means that PT. Semen Gresik, Tbk., can increasing their profit year by year. There aren't any decreasing in this ratio.  

Stock and financial condition analysis

I. Company Profile

PT. SEMEN GRESIK Tbk.

Profile

PT Semen Gresik is a cement manufacturing company. It was officially inaugurated at gresik on 7 Augusts 1957 by the first president of the Republic of Indonesia. The production capacity was 250,000 tons per year.

In September 1995, the company made the right issue after which the composition of the shareholders became: the government of Indonesia 65% and the public 35%. On 15 September 1995 the company was consolidated with PT semen Padang and PT semen Tonasa. The total production capacity at the time was 8.5 million tons of cement per year. 

At the end of March 2010, blue valley Holdings PTE Ltd. sold all its shares through a private placement, so that the composition of shareholders of the company changed to the government 51.01% and the public 48.99%. Currently the company’s real production capacity is 19 million tons per year and controls 43% shares in the domestic market.

Vision

To become the foremost cement company in South East Asia.

Mission

• To produce and trade cement and other relevant products with an orientation on customer satisfaction by applying environmentally - friendly technology.
• To create a corporate management meeting international standards by upholding the business ethics, solidarity and to take proactive, efficient and innovative actions in performing the works.
• To have competitiveness in domestic and international cement markets.
• To empower and maintain synergy among strategic business units to improve added value in a sustainable manner.
• To have a commitment to the improvement of the welfare of the stakeholders, especially shareholders, employees and the surrounding community.

II. Analysis of Financial Condition

LIQUIDITY RATIO	2005	2006	2007	2008	2009	2010
Current Ratio	1.354440376	2.168530573	2.933723909	2.915889643	3.116739088	2.917000428
Quick Ratio	1.25	2.14	2.92	2.63	2.96	2.92
Cash Ratio	0.63	1.21	1.96	1.80	1.49	1.47

Liquidity Ratio of PT. Semen Gresik, Tbk., have increasing year by year. But in Quick Ratio and also Cash Ratio, their ratio just increase until year 2008, but after that year, the ratio will be goes down but not too significantly. From that data, we can conclude that Liquidity of PT. Semen Gresik, Tbk., is good because overall data have ratio more than 1.

EFFICIENCY RATIO	2005	2006	2007	2008	2009	2010
Inventory Turnover	4.461081005	5.263591626	5.34430064	4.337234713	5.409084257	4.638585683
Days Sales in Inventory	81.81873398	69.34428541	68.29705599	84.15500294	67.47907458	78.6877779
Account Receivable Turnover	6.417949312	7.768550743	8.177345872	8.038399147	9.992839363	8.130317455
Average Collection Period	56.87174863	46.98431047	44.63550958	45.407051	36.52615505	44.89369598
Total Asset Turnover	1.032111879	1.1642703	1.127486208	1.151550265	1.110918681	0.921685403
Fixed Assets Turnover	2.202664706	2.759431399	3.095169488	3.690026045	3.584289349	1.871983906

Efficiency Ratio of PT. Semen Gresik, Tbk., have fluctuate ratio in year by year. But for the overall, the company having high turnover. 

LEVERAGE RATIO	2005	2006	2007	2008	2009	2010
Debt Ratio	0.081719024	0.06071699	0.041075358	0.031797618	0.026126473	0.058197459
Debt to Equity Ratio	0.08172907	0.10189544	0.05277684	0.04178021	0.033181276	0.075436772
Equity Ratio	0.999877087	0.595875444	0.778283773	0.761068886	0.787386031	0.771473352
Equity Multiplier	1.000122928	1.678203071	1.284878388	1.313941508	1.270025071	1.296221053
Time Interest Earned Ratio	9.95790	22.10683	206.18047	129.32136	213.30990	171.98667

Leverage Ratio of PT. Semen Gresik Indonesia, Tbk., have decreasing year by year. It's mean that PT. Semen Gresik, Tbk., have good leverage and they can make decreasing of their debt ratios.

PROFITABILITY RATIOS	2005	2006	2007	2008	2009	2010
Gross Profit Margin	0.383924	0.381252	0.416700	0.438549	0.470824	0.474764
Operating Profit Margin	0.207612296	0.203873505	0.249650836	0.277414228	0.301821537	0.312950701
Net Profit Margin	0.132998451	0.148435046	0.184922904	0.206681067	0.231201187	0.253288631
OIROI	0.214279117	0.237363867	0.281477875	0.319456427	0.335299184	0.288442093
ROA	0.13727	0.17282	0.20850	0.23800	0.25685	0.23345
ROE	0.13729	0.29002	0.26789	0.31272	0.32620	0.30261

Profitability Ratio of PT. Semen Gresik, Tbk., for overall are increasing year by year. It means that PT. Semen Gresik, Tbk., can increasing their profit year by year. There aren't any decreasing in this ratio.  

III. Stock Analysis

Stock prices move according to forces of supply and demand for shares in the secondary market. The more investors who want to buy or keep a stock, the price goes up, otherwise more and more investors who want to sell or dispose of a stock, it costs more to move down. more high and low stock prices are influenced by the assessment of the buyer and seller against internal and external conditions. Internal conditions can be observed from a variety of performance indicators and financial ratios, so it can be said that investors are very interested in the company's financial statements. The investors in the share purchase transaction must be influenced by several factors, namely micro-enterprise factors and macroeconomic factors. Micro factors (internal company) that affect stock trading transactions include: stock prices, the level of profits earned, the level of risk, corporate performance and corporate action committed company. While macro factors (external company) is the rate of inflation, exchange rate or exchange rate of rupiah, the state of the economy, political and social conditions of the country concerned. Stocks that have good performance even if the price dropped hard because of a bad market (bearish) which causes the shaken confidence of investors, the stock is not going to disappear if investor confidence is restored. Improved economic cycles or other things get better (bullish), then the price of this good stocks will go up to the risk of the holder of a stock is the decline in stock prices.

            In the graph tends to be significant changes to the decline and rise of stock prices, the decline that occurred because of a lack of public trust towards PT.Semen Gresik, Tbk because it is caused by increased profit margins and ROE is not significant in profitability did not increase significantly. Society tends to make short-term investments.

IV. Relation between company financial condition and stock price

In general, the better the company's finances and the many advantages enjoyed by the shareholders, the stock price will likely rise. But stocks that have good profit levels can also decrease due to the nature of commodity prices is very sensitive to the changes that occur, both changes in foreign and domestic, the change in the political, economic, monetary, laws or regulations, or changes occurring within the industry and the company itself. These changes can have a positive impact and can also impact negatively. To reduce the risk of actual stock information is necessary, accurate and transparent. The financial information as an instrument of accounting data is expected to describe the economic reality. Therefore, examination of the information content will be able to influence the market reaction on the rate of return (return). One alternative to determine the financial information generated is useful for predicting stock prices, the financial ratio analysis.

V. Conclusion

As a whole can be said to be good company in its financial condition, because the liquidity in the years 2005-2010 PT.Semen Gresik from more than one even reached three. in managing assets, managers can be said to be efficient in the management of which can be evidenced in the trend of improvement in the efficiency ratio. Funding does not rely on the company's debt but equity that can be seen in the leverage analysis. Other than that PT.Semen Gresik may produce an increase in profits and earnings at PT. Semen Gresik, although the increase is not so significant, but it can be said to be good company in its finances.