EFEKTIFITAS RESTRUKTURISASI KEUANGAN PERUSAHAAN DENGAN DEBT TO EQUITY CONVERSION DI LINGKUNGAN BUMN : SUATU STUDI KASUS

Abstract

Debt to Equity Conversion (DEC) is understood as one of financial strategies to recover the company’s financial problem from its debt. PT ABC as a subsidiary company of one of the state owned enterprises (SOE) experiences a financial failure since 2009, thus the shareholders decided to restruct it through DEC mechanism in the end of 2011 to secure the company from bankruptcy. The purpose of this paper is (1) to attempt an assessment of the company financial ratios performance after implementation of DEC (2) to study the prediction of the company’s bankruptcy before and after DEC and (3) to analyse factors that has influence the level of profitability of the company. The approach of this study is a quantitative method using PT ABC’s audited annual reports. Analysis of financial ratios consisted of activity, liquidity, solvency and profitability ratios are used in this research. Altman Z’-scores is also used to measure the company’s financial performance and prediction of bankruptcy. Analysis tools used were Mann-Whitney test and linear regressions. The result of this study showed that (1) DEC has impacted the financial ratios performance of the company, especially in activity measured by Fixed Assets Turnover and solvability measured by Debt to Total Assets Ratio.Restructuring debt to equity clearly has one direct impact, i.e. decreasing Interest (2) DEC has also impacted the bankruptcy indicator calculated by Altman Z’-scores, (3)Factors of profitability that significantly influence ROAare cash cycle,debt to total assets ratio, fixed assets turn over, gross profit margin, sales growth, ROA of last period