Perusahaan Gas Negara, Tbk.

The Result of Data Evaluation of PGAS years 2005-2009

No.	Decription	Year
		2005	2006	2007	2008	2009
1	2	3	4	5	6	7
1.	Liquidity ratio
	-   Current ratio	3.5880	1.4513	1.1666	2.1765	2.4836
	-   Acid test ratio	3.5703	1.4346	1.1600	2.1721	2.4798
2.	Efficiency  ratio
	-   Average collection period	54 days	44 days	48 days	46 days	14 days
	-   Accounts receivable turnover	7 times	8 times	8 times	8 times	26 times
	-   Total asset turnover	0.4321 times	0.4388 times	0.4326 times	0.5007 times	0.6287 Times
	-  Inventory turnover	187.8347 times per year	123.3190 times per year	182.2442 times per year	359.9722 times per year	511.3135 times per year
	-   Fixed asset turnover	0.7643	0.5048	0.5352	0.7264	1.0401
3.	Leverage ratio
	-  Debt to equity ratio (1st)	1.4629	1.3442	1.5876	2.0045	1.0367
	-   Debt to equity ratio (2nd)	1.7995	1.5877	2.1766	2.4707	1.3546
4.	Profitability ratio
	-   Operating profit margin	0.2857	0.3609	0.3501	0.3640	0.4259
	-   Net profit margin	0.1586	0.2854	0.1787	0.0495	0.3456
	-   OIROI	0.1234	0.1584	0.1514	0.1823	0.2677
	-   Return on Equity	0.2053	0.3394	0.2493	0.0896	0.5309
	-   Return on Assets	0.0686	0.1252	0.0773	0.0248	0.2173
	-   Time Interest Earned Ratio	6.1811	9.6350	7.5152	8.5109	13.7499
	-   Earning per Share	Rp191.69	Rp417.7497	Rp346	Rp26.16	Rp262
	-   Dividend per share	Rp51.0756	Rp50.6946	Rp208.1218	Rp32.4552	Rp42.0486
	-   Dividend payout ratio	0.2664	0.1214	0.6018	1.2405	0.1605
	-   Plowback ratio	0.7336	0.8786	0.3982	-0.2405	0.8395
5.	Du pont ratio
	-   Return on assets (ROA)	0.5908	0.7242	0.6112	0.5503	0.9743
	-   Return on equity (ROE) 1st	1.1548	1.7480	1.2036	1.2369	1.6921
	Return on equity (ROE) 2nd	1.4800	1.4366	1.8795	1.2237	2.1860

ANALYSIS OF FINANCIAL CONDITION

Liquidity Ratio is the ability of a firm to pay its bill on time, and how quickly a firm converts its liquidity assets (account receivable and inventory) into a cash. Form the data and the table above, we can know that from 2005 as a basic year up to 2009, there were decrease. The biggest liquidity ratio was on 2005 which current ratio was 3.5880 and acid ratio 3.5703 it means that on 2005 the firm convert assets into cash quickier than the other years. 2005 had big liquidity ratio because it had more current assets that a firm has relative to its current liabilities. The current assets on 2005 was Rp 5.071.204.870.464 with current liabilities Rp 1.413.388.662.345. The smallest liquidity ratio was on 2007 which current ratio 1.1666 and acid ratio 1.1600 these mean that on 2007 the ability of firm to convert its liquidity to cash was slower than the other years. These because on 2007 the current assets was Rp 3.686.366.478.391 and current liabilities was Rp3.159.996.135.057.

Efficiency ratio measures how firm control its investment efficiently. The average collection period on 2009 was 14 days with account receivable turnover was 26 times a year. These mean that the firm need shorter time to collect the firm’s receivable and faster at collecting its receivable. On the 2005 the firm need 54 days for the average collection period and 7 times to account receivable. These mean on 2005 the firm need longger time to collect the firm’s receivable. The firm had the best management of its inventory turnover was on 2009 wich 511.3135 times per year .

Total assets turnover indicates management’s effectiveness at managing a firm’s balance sheet-its assets as indicates by the amount of sa;es generated per one dollar of assets .Total assets turnover on 2009 was 0.6287 Times. It means that The firm generated about Rp 0,6287 in sales per assets dollar for company. The firm was using its assets more efficiency in generated sales than the other years.

Financial laverage indicate the extent to which firms use debt financing more effective. The highes financial leverage is on 2008. The debt to equity is 2.0045 and 2.4707. it means that on 2008 the firms used the debt is more efficient than other years. Because 0n 2008 there was the biggest economic crisis .

Profitability the extent to which companies can generate good profits in connection with assets, sales, and profits for their own capital.  The best profit is on 2009. Which Operating profit margin 0.4259. Net profit margin 0.3456. OIROI is 0.2677. Return on Equity is 0.5309. Return on Assets is 0.2173. Time Interest Earned Ratio is 13.7499. Earning per Share is Rp262. Dividend per share is Rp42.0486. Dividend payout ratio is 0.1605. Plowback ratio is 0.8395

Operating profit margin indicates management’s effectiveness in managing the firm’s income statement as measured by operating profits relatives to sales. On 2009 the operating profit margin was 0.4259, it means that the firm was far more than competitive when it comes to keeping costs and expenses in line relatives to sales, as is reflected by the operating profit margin.

Operating income return on investment (OIROI)indicates the effectiveness its management at generating operating profit on the firm’s assets , as measured by operating profits relative to the total assets. On 2009 the OIROI was 0,2677 it means that the firm was earning more the return on investment than the other years. Management was generating significantly more income in Rp1 of assets than similar firm. 

Times interest earned indicates times a firm’s ability to cover its interest expense as measured by its earnings before interest and taxes relative to the interest expense. On 2009 the times interest earned was 13.7499 it means that the firm was well able to service its interest expense without any difficulty. In a fact the firm’s operating income could fall for a little as 1/13.7499 its current level and still have the income to pay the required interest.

Return on common equity indicates the accounting rate of return on the stakeholder’s investment  as measured by net income relative to common equity. On 2009 the return on common equity was 0.5309, it means that the firm was receiving a return on their investment that was more attractive than the other years .

Return on assets determines the amount of net income produced on a firm’s assets by relating net income to total assets. On 2009 the return on assets was 0.2173 it means that the firm had more amount than other years of net income produced on a firm’s assets. On 2008 the return on assets was 0,0248 this was the lowest amount during 2005-2009. It means that on this years the firm had less amount of net income that the other years produced on a firm’s assets.

Dividen payout ratio is the amount of dividen relatives to the company’s net income or earnings per share . the highest dividen payout ratio was on 2005. It was 0,2664. It means that the amount on 2005 was more relatives to the company’s net income or earnings per share than other years. The lowest ratio was on 2006. It was 0,1214.

            Plowback ratio is the percent of a firm’s earnings that are reinvested in the firm. The highes plowback ratio during 2005-2009 was on 2006. It was 0,8786 it means that 87,86% of firm’s earnings are invested in the firm. The lowes plowback ratio was on 2008. it was negative 0,2465.

Dupont analysis is an approach to evaluate a firms profitability and return on equity. The highest retun on assets was on 2009. It was 0,9743 and the lowest return on assets was on 2008. It was 0,5503. The highest return on equity with first assumption was on 2009. It was 1,6921. It means that the manager more maximize sharehplder wealth than the other years during 2005-2009.

TABLE OF TREND ANALYSIS

No	Description	Variance
		2005-2006	2005-2007	2005-2008	2005-2009
1	Liquidity ratio
	Current ratio	-2.1367 (decrease)	-2.4214 (decrease)	-1.4115 (decrease)	-1.1044 (decrease)
	Quick ratio	-2,1357 (decrease)	-2.4103 (decrease)	-1.3982 (decrease)	-0905 (decrease)
2	Activity ratio
	receivable turnover	1 day	1 day	1 day	19 days (good)
	Average collection ratio	-10 (days) (increase)	-6 days (increase)	-8 days (increase)	-40 (increase)
	Inventory turnover	-64.5157 (decrease)	-5.5905 (decrease)	172.1375 (increase)	323.4788 (increase)
	total assets turnover	0,0067 (increase)	0.0005 (increase)	0,0686 (increase)	0,1966 (increase)
	Fixed assets turnover	-0.2595 (decrease)	-0.2291 (decrease)	-0.0379 (decrease)	0,2758 (increase)
3	Laverage Ratio
	Debt to equity ratio(1)	-0,1187	0,1247	0,5416	-0,4262
	Debt to ratio(2)	-0,2118	0,3771	0,6712	-0.4449
4	Profitability ratio
	Operating income return on investment	0,035 =  3.5%	0,028= 2.8%	0,0589= 5.89%	0,1443= 14.43%
	Operating profit margin	0.0752= 7.52%	0.0644= 6.44%	0.0783=  7.83%	0.1402= 14.02%
	Net profit margin	0.1268	0.0201	-0.1091	0.187
	Return on equity	0.1341	0.044	-0.1157	0.3256
	Return on assets	0.0566 = 5.66%	0.0087= 0.87%	-0.0438 = -4.38%	0.1487 = 14.87%
	Time Interest Earned ratio	3.4539 times	1.3341 times	2.3298 times	7.5688 times
	Earning per share	Rp 226.0597	Rp 154.31	-Rp 165.53	Rp 70.31
	Dividend per share	-Rp 0.381	Rp 157.0462	-Rp  18.6204	-Rp 9.027
	Dividend payout ratio	-0.145=  -14.5%	0.3354= 33.54%	0.9741 = 97.41%	- 0.1059= -10.59%
	Plowback ratio	0.145= 14.5 %	- 0.3354= -33.54%	-0.9741= -97.41%	0.1032= 10.32%
5.	Du Pont ratio
	Return on asset (ROA)	0.1334	0.0204	-0.0405	0.3835
	Return on  equity (ROE)1st	0.5932	0.0488	0.0821	0.5373
	Return on equity (ROE)2nd	-0.0434	0.3995	-0.2563	0.706

The trends analysis (tendencies position) is an analytical technique to determine whether the tendency of financial circumstances showed changes increased or decreased from one period to the next. Trend calculation results can be shown in the form of percentages or indices.

Trend in percentage is calculated by selecting the first year as a basis for comparison or as a base year. The base year is the first year of the entire period analyzed.
In the calculation analysis of state gas company's (Perusahaan Gas Negara, Persero) financial condition as the table below, we use 2005 as base year for calculating the years 2006,2007,2008, and 2009.