Financial Statement Analysis

PT Merck Tbk

Prepared by: TututTamiDhini

 Tutut Wahyudi (219114011)
 Sri Utami Kusuma Ningsih (219112016)
 Dhini Eka Tania (219112015)
Financial Statement as of 31 Dec 2018
Cont.. Non-Current Assets
Cont.. Non-Current Assets
Cont.. Liabilities
Cont.. Equity
Statement of Profit & Loss 2018
Cont.. P&L
Short-term Solvency/ Liquidity Ratio
Current ratio = Total current assets Quick ratio = Quick assets
Total current liabilities Total current liabilities
Current ratio = 973.309.659 Quick ratio = 973.309.659 - 270.515.224
709.437.157 709.437.157
Current ratio = 1.4 Quick ratio = 1.0
Current ratio PT Merck Tbk is 1.4 means this Quick ratio PT Merck Tbk is 1.0 means this
company has a good ability to pay off their short- company has enough quick assets to cover total
term obligations. This ratio also can interact current liabilities and will be able to pay off their
investor because the company has a good liquidity short-term obligations without having to sell off
any long-term or capital assets
Cash ratio = Cash
Total current liabilities
Cash ratio = 403.188.662
709.437.157
Cash ratio = 0.6
Cash ratio PT Merck Tbk is 0.6 means this company
has enough cash and equivalents to pay off 60% of
their current liabilities and this company maintains a
relatively sufficient cash balance during the year
Long-term Solvency/ Financial Leverage Ratio
Total debt ratio = Total debt Debt equity ratio = Total debt
Total assets Total equity
Total debt ratio = 744.833.288 Debt equity ratio = 744.833.288
1.263.113.689 518.280.401
Total debt ratio = 0.6 Debt equity ratio = 1.4
Total debt ratio PT Merck Tbk is 0.6 implies a more Debt Equity ratio PT Merck Tbk is 1.4 shows that
stable business with the potential of longevity the investors haven’t funded the operations as
because this company has lower overall debt much as creditors have

Equity multiplier = Total assets Interest coverage = EBIT

Total equity Interest expense
Equity Multiplier = 1.263.113.689 Interest coverage = 47.128.975
518.280.401 722.4
Equity Multiplier = 2.4 Interest coverage = 65.2
Equity Multiplier PT Merck Tbk is 2.4 means that Interest coverage PT Merck Tbk is 65.2 means
more assets were funding by debt than by equity. this company has makes 65.2 times more
This also means that current investors actually earnings than their current interest payments.
own less of the company assets than creditors This is a good sign because it shows they have
enough earnings to cover interest payments
Activity Ratio
Total asset turnover = Total operating revenues Receivable turnover = Total operating revenues
Average total assets Average receivable
Total asset turnover = 611.958.076 Receivable turnover = 611.958.076
1.055.060.116 254.972.728
Total asset turnover = 0.6 Receivable turnover = 2.4
Total asset turnover PT Merck Tbk is 0.6 measures Receivable turnover PT Merck Tbk is 2.4 means
a company’s ability to generate sales from its that the company collects their receivables about
assets 2.4 times a year or average collection period
once every 152 days

Inventory turnover = Cost of good sold

Average inventory
Inventory turnover = 400.270.367
279.789.654
Inventory turnover = 1.4
Inventory turnover PT Merck Tbk is 1.4 means this company only sold
roughly 1.4 times of their inventory during the year. It also implies that
it would take approximately 255 days to sell their entire inventory. In
other words, the company does not have very good inventory control
Profitability Ratio
Net profit margin = Net income Return on asset = Net income
Total operating revenue Average total assets
Net profit margin = 37.377.736 Return on Asset = 37.377.736
611.958.076 1.055.060.116
Net profit margin = 6% Return on Asset = 4%
Total asset turnover PT Merck Tbk is 6% measures Return on assets PT Merck Tbk is 4% measures
profitability of the company. It tells how much of how effectively the company can earn a return on
the revenue generated by the company is left over its investment in assets. We can conclude that
to pay shareholders or reinvest in the company the company is still not optimize their assets

Return on equity = Net income

Average shareholder's equity
Return on equity = 37.377.736
566.858.921
Return on equity = 6%
Cash ratio PT Merck Tbk is 6% measures the ability of
company can use the money from shareholders to
generate profits and grow the company. From the
above calculation, ROE is below the standard
compared to similar industries by 15%.
Market Value Ratio
Price earnings ratio = Market price/ share Market to Book ratio = Market price/ share
Current annual earnings/ share Book value/ share
Price earnings ratio = 4.300 Market to Book ratio = 4.300
84 50
Price earnings ratio = 51.2 Market to Book ratio = 86
Price earning ratio PT Merck Tbk is 51.2 means Return on assets PT Merck Tbk is 86 indicates
that investors are willing to pay IDR 51.2 for every that the investors are willing to pay more for the
rupiah of earnings company than its net assets are worth