Financial statement is
a summary of accounting record was composed of balance sheet and income
statement in a period that financial statement will be an information for users
who making decision. Analysis financial statement is process for evaluating the
financial position and operation company result with its purpose to determine condition
of the company’s performance for the future. Technical development of analysis
financial statement are ratio analysis and cash flow analysis. Financial Ratio
analysis is analysis of comparison amounts in financial statement that useful
for condition in financial company analysis. Types of financial ratio analysis:
1. Liquidity
Ratio
This ratio is used for the ability of
measure to fulfill short term liabilities. There are :
a. Current
Ratio
b. Acid
Test Ratio
c. Cash
Position Ratio
2. Solvabilty
Ratio
This ratio is used for the ability of
measure to fulfill short term liabilities and long term liabilities. There are:
a. Total
Debt To Equity Ratio
b. Total
Debt To Total Assets Ratio
c. Long
Term Debt To Equity
d. Long
Term Debt To Total Assets
3. Profitability
Ratio
This ratio is used for the ability to
produce profit in a period. There are:
a. Return
On Equity (ROE)
b. Return
On Assets (ROA)
c. Net
Profit Margin
d. Gross
Profit Margin
Obstacles
of financial ratio analysis: First, the differences in accounting principle from
many countries. Second, the differences in culture, competition condition and
local economy influence interpretation of accounting measurement and financial
ratio, although accounting measurement from different countries presented that
achievement of accounting comparability. Cash
flow statement analysis is an analysis
that financial statement shows how change in balance sheet accounts and income
affect cash and cash equivalents, and also breaks analysis down to operating,
investing and financing activities. If cash flow statement isn’t presented,
often we find difficulty in counting cash flow from measure of another cash
flow with adjust accrual basis profit.
Pelapu,
Bernard and Healy make the basic structure that useful for analysis and
business valuation with financial statement such as:
1. Analysis
of International Business Strategy
This analysis the most important because
it give qualitative comprehension of company and competitors associated with
economy environment. This analysis
involve audit annual report and publication other company, talk with staff
company, analys and other financial professional. Additional information
resources such as world wide web (WWW), group of trade, competitors, consumen,
reporter, regulator, business company, and lobbyist.
2. Accounting
Analysis
This analysis to analyze result of reported
the company has or hasn’t reflect economy reality.
3. International
Financial Analysis
This analysis to evaluate company
performance for the past and now and also to appraise what its performance can
retained. Information sources to analysis international financial statement :
a. Financial
statement, support schedule, and note of financial statement.
b. Background
of treasure company and disclosure.
Techinques that use in analysis of
international financial are:
a. Analysis
of Trend
This analysis to compare items
periodically for 2 years or more than 2 years such as profit trend, geometric
growth, etc.
b. Analysis
of Ratio
This analysis to compare amounts of
financial statement.
4. Analysis
of International Prospective
This analysis consists of forecasting
phase and valuation phase. Forecasting phase explicitly by business strategy,
accounting record, and financial analysis. Valuation phase is an analys change
quantitative forecasting become estimation of value company.
The difficulty and weakness in International
Financial Analysis consists of:
1. Information
Access
2. Timeliness
of Information
3. Obstacle
of Language and Terminology
4. Consideration
of Foreign Currency
Bibliography:
Choi, Frederick D.S.,
and Gary K. Meek.2010. Akuntansi
Internasional.Buku 2, Edisi 5.Jakarta: Salemba Empat.
