Sampoerna Agro Tbk’s Profile
First field planting within the Sampoerna Agro Group was done by PT Aek Tarum back in 1989 followed by the establishment of PT Sampoerna Agro Tbk (previously named as PT Selapan Jaya) in 1993 to operate oil palm plantations in South Sumatra region. PT Sampoerna Agro Tbk together with its subsidiary companies (“Sampoerna Agro” or “the Company”) are one of the leading producers of palm oil and palm kernel in Indonesia. The Company is also one of the few oil palm seed producers in Indonesia that receive license from the Minister of Agriculture of the Republic of Indonesia to produce and sell oil palm seeds to third parties.
In 2007, PT Selapan Jaya changed its name to PT Sampoerna Agro. PT Sampoerna Agro became publicly listed company. The Company has a total of five Palm Oil Mills (POMs), of which four are situated in Sumatra and one in Kalimantan. The POMs in Sumatra have a total capacity to produce 320 tons of fresh fruit bunches (“FFB”) per hour, whereas the POM in Kalimantan has a capacity to produce 75 tons of FFB per hour. There is one more POM having an additional capacity of 60 tons of FFB per hour located in Sumatra that is scheduled to start operations in the first half of 2010.
PT Sampoerna Agro has vision and missions, that is:
Vision: To be a responsible Indonesian leader in agribusiness.
As an integral part of the Sampoerna Strategic Group, the Company has a vision to become one of the leading agribusiness companies that is accountable in Indonesia with its rapid growth strategy.
Mission:
1. To develop a committed professional team of the highest integrity supported by skillful and motivated human resources.
2. To find and develop opportunities for profitable growth in our core business while keeping tight controls on costs.
3. To continue striving an excellent through innovation and investment in research and development.
4. To contribute to enhancement of quality of life in the local communities where we operate.
5. To attain and promote prevailing environmental standards in all aspects development, production, and processing.
PT Sampoerna Agro Tbk listed the company in June 18, 2007. Our group will analyze the financial condition from 2007 until 2009. This analyzing will include the liquidity analysis, efficiency use of assets analysis, leverage analysis, profitability analysis, and dupont analysis. The analysis of financial condition of PT Sampoerna Agro Tbk will show below:
Liquidity Analysis
The liquidity analysis is analyzes the liquidity of company. The primary concern is the company’s ability to pay its bills over the short run without undue stress. There are 3 ratios that we will analyze, which are current ratio, quick ratio or acid test ratio, and cash ratio.
The table above shows the current ratio, quick ratio, and cash ratio from 2007 until 2009 of PT Sampoerna Agro Tbk. We can see on the table that the liquidity of the company is in good condition, because the current ratio, quick ratio, and cash ratio is more than 1; the higher the ratio, the better.
The current ratio is a measure of short-term liquidity. We can see that the current ratio of 2007 is 2.5164 times. It is means that PT Sampoerna Agro Tbk has its current liabilities covered 2.5164 times over or PT Sampoerna Agro Tbk has $ 2.5164 in current assets for every $ 1 in current liabilities, and it is also for year 2008 and 2009. The current ratio from 2007 until 2009 also stable, because it hold on over ratio 2. The quick ratio of PT Sampoerna Tbk for 2007 and 2008 is stable in ratio 1.9 and it is up in 2009 in ratio 2, although the cash ratio for 2007 until 2009 is having fluctuation.
Efficiency Analysis
Efficiency analysis is analyzes the uses of assets of the company. We look how efficiently or intensively PT Sampoerna Agro Tbk uses its assets to generate sales. We will analyze the average collection period, account receivables turnover, total asset turnover, inventory turnover, and fixed asset turnover.
We can see on the table that average collection period for 2007, 2008, and 2009 is 59 days, 5 days, and 17 days. From this data, we can analyze that in 2007 the company, the average, have 59 days to collect their money from daily sales on credit. It is bad for the company, because it is too long to collect money from credit sales, while in 2008, the company, the average, just take 5 days to collect the money from credit sales. It is good for the company, because it is fast enough to get money from credit sales. For 2009, the average, it is needs 17 days to get collect money from credit sales and it is good enough also for the company. From the table, we can analyze also that the company do a great job for 2008, because they can make the average collection period from 59 days to just 5 days, although in 2009 the average collection period up to 17 days.
For account receivable turnover, we can see that the account receivable turnover in 2007, 2008, and 2009 is 6.1017 times, 90 times, and 22.50 times. We can said that in 2007, PT Sampoerna Agro Tbk collected its outstanding credit accounts and reloaned the money 6.1017 times during the year, for 2008, the company can collected its credit accounts and reloaned the money 90 times during the year, and in 2009, the company can collected its credit accounts and reloaned the money 22.50 times during the year. It is good for the company, because their performance can increase the reloaned of company’s money from 2007 to 2008, although it is decrease again in 2009. Also it is because the influenced of the company’s average collection period, because smaller the day for the collection of the money from daily credit sales, faster the company reloaned the company’s money.
From the table the total assets turnover in 2007, 2008, and 2009 is 0.7658 times, 1.0612 times, and 0.8027. It is means that in 2007, the company is not in efficient condition. Because 0.7658 mean sales in PT Sampoerna Agro Tbk is smaller than total assets, but it increase to 1.0612, it is means that the company’s sales is bigger that the total assets, although it is decrease again in 2009 about 0.7658. Besides the total assets turnover, the inventory turnover also fluctuates. It is increase in 2007 to 2008, from 5.1352 times to 12.5875 times and decrease in 2009, to 8.9514 times. Although it is fluctuate, but the company still in the good condition in inventory. The last in efficiency analysis is fixed assets turnover. For fixed assets turnover, although it is fluctuates, increase from 2007 to 2008 and decrease in 2009, but the company is in good condition, because 3.8197 times, 4.7091 times, and 3.0725 times means that from 2007 to 2009 the company’s sales is bigger than the fixed assets.
Leverage Analysis
The leverage analysis is analyzes the company’s debt and its riskiness for financial company. For leverage analysis, we will analyze debt ratio, equity ratio, and debt to equity ratio.
About debt ratio, we can analyze that PT Sampoerna Agro Tbk used 28.50% in 2007, 26.81% in 2008, and 21% in 2009, of debt to finance the company. But, the percentage of using the debt to finance the company decrease year to year, from 2007 to 2009. In other hand, the ratio of using equity to finance the company is high. It is increase year to year; in 2007 the percentage is 70.46% increased to 78.06% in 2009. On the table, we also analyze that the comparison between debts on equity is decrease year to year, from 2007, 40.44% decreased to 26.90% in 2009.
Profitability Analysis
Profitability analysis is about to measure how efficiently a company uses its assets and manages its operations. We will analyze the profitability from 10 measurements; there are operating profit margin, net profit margin, operating income return on investment (OIROI), return on equity (ROE), return on assets (ROA), times interest earned ratio, earnings per share (EPS), dividend per share, dividend payout ratio, and plowback ratio.
The operating profit margin for PT Sampoerna Agro Tbk show that the company in good condition. It is shows that from 2007 until 2009, it is more than 25%. From OIROI, it is also shows that the company also in good condition, because the percentage of OIROI from 2007 until 2009 is good enough, this percentage reflects product pricing and the ability of the company to keep costs down. The times interest earned ratio also give a good ratio, because from 2007 until 2009, the ratio is more than 1. We can see that the ability of the company to pay their expense is increase from 2007 to 2008, although it is decrease in 2009.
Company Stock
The graph above shows the value of highest, lowest, closing price, and volume of transaction of Sampoerna Agro Tbk Stock from January 2, 2010 until October 30, 2010. We can see the volume in the right side of the graph and the closing price in the left side. As we can see from the graph that the price of stock of Sampoerna Agro Tbk is fluctuated. The highest price was 3150 on October 26, 2010 and the lowest price is 1810 on May 25, 2010. However, the highest price of stock in the closing price is 3125 on October 25, 2010 and the lowest closing price is 1940 on May 25, 2010. The highest volume is 23,103,500 on August 5, 2010 and the lowest volume is 193,000 on July 5, 2010. The graph is showing us that the condition of the stock of Sampoerna Agro Tbk is not stable.
There are many factors that influence the rise and fall of a company’s stock price. Stock prices can rise or fall causes one of which is supply and demand factors. The supply and demand is also influenced by several factors, interest rate movements and inflation. Other things can affect the price movement of stocks is the performance of the company issuing the shares.
The graph above drawing illustrates the stock price of Sampoerna Agro Tbk during January 4, 2010 to October 4, 2010. Indicators of market trends are the stock prices that describe the market situation at that time. Graph component is discussed the high, low, closing prices, and volume of transaction.
The price of stock of Sampoerna Agro Tbk from January 4, 2010 until October 4, 2010 is fluctuated. This increase is caused by the demand of consumers are increasing. Also it makes advantage in palm oil business. While the decrease is caused by disaster like flood and fire. It made the palm oil is rare to find in the market, so this condition makes the price of palm oil is increasing. When the Dollar price is decreasing, it influenced the value of Rupiah decrease, so it impacts for the selling of palm oil is increasing. While the Dollar price is increasing, it influenced the value of Rupiah increase, so it impacts for the selling of palm oil is deacreasing. These changes caused by the growth economic of agribusiness. It also depends on exchange rate of Dollar, demand of consumers, and the nature condition.
Conclusion
From the data we can know that Sampoerna Argo Tbk is not really good in that business because the result of the calculation from this information show us that it is fluctuation. See from this result This analyzing will include the liquidity analysis, efficiency use of assets analysis, leverage analysis, profitability analysis, and dupont analysis. The analysis of financial condition of PT Sampoerna Agro Tbk not only increasing but also decreasing.
Actually, PT Sampoerna Agro Tbk should give more attention for the growth of economic from the company. They are also should give attention for the demand by the consumer and prepare for the disaster.
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