Today the country is building, good development in industry, services and trade. Development promote employment and business opportunities that provide excellent perospek for entrepreneurs. In the construction of the government does not work alone; it opens
opportunities for economic players to promote national economic growth
aimed at the welfare of society.Opportunities that provide opportunities for entrepreneurs to start a business. But we need to know that in the business world (business) can not be separated from competition. The existence of the policy, investors are vying to invest in opening a business. The number of entrepreneurs in opening a business was a response to
the government's policy to improve the welfare of the community.The
success or failure of an enterprise is characterized by the ability of
management to read or see any possibility or opportunity in the future,
both short term and long term. Hence
the task of managers to plan for the future, all the possibilities and
opportunities in the future and how to face in the present. A company not only serves to produce a quality product at a set price
to attract consumers, but the company must consider the internal
conditions of the company.This condition can greatly affect those who have invested funds to the company's success. Because investors do not want to lose, so that investors always perform oversight to the company in managing the company. In connection with the condition of the company, in this paper the
author uses the method analissi Econimic Value Added (EVA) in view of
the state of the company.Analysis of Economic Value Added is an analysis that is used by many companies in Europe in analyzing the company. By using this anlisis investors will be cautious in investing in a company.In
the analysis if the results of EVA EVA is positive, the company was in a
healthy state, and vice versa if the results of the EVA is negative,
the company is not healthy. Party managers should really pay attention to the state of his company
because if the company was not healthy then the investor will not
invest funds to companies because they consider unprofitable that led to
the company will be difficult to raise money or capital in running the
business.In this era of competition in the business world is very tight. The businesses should strive to improve the management of the company to compete with companies engaged in the same field. Meanwhile, in the face of competition companies must have sufficient
funds to do trobusan that consumers or buyers may be interested in
buying products produced by the company.So
in this paper the author tried to outline the full title of which is
"Analysis of Economic Value Added (Economic Value Added) in the
condition of financial performance at PT. Karya Indah Makassar. So it can be beneficial for the company in taking a policy and also for investors in investing their funds in companies PT. Karya Indah Makassar.B. Issue HighlightsWith a view of the above background, the authors draw a fundamental problem, namely:"Is financial performance. Karya Indah Makassar healthy enough seen from the analysis of Economic Value Added (Economic Value Added) ".C. Research Objectives and PurposeThe purpose of this research is:To determine the financial performance of PT. Karya Indah diihat of Economic Value Added whether he is healthy or notWhile the usefulness of this research are:1. As the material information to the parties directly involved in the management of the company in decision-making2. As a reference to the parties conducting similar research and writing in the future.3. In this study the authors can find out what a healthy effect on the failure of a companyCHAPTER IITINJAUAAN LITERATURE
A. Understanding Economic Value Added (EVA)Economic value Added is a financial management system to measure economic profits in a company that states that prosperity can only be achieved if the company is able to meet all operating costs (operating costs) and the cost of capital (cost of capital)According to K. Reilly and Keith C.B. Financial Management (2001: 2) states that:"Economic value added (EVA) Is an internal management performance measure that campres net operation profit to the total cost of capital. Indecates how profitabile campany projects are as sign of mangement porformance (economic value added is internal pointing manjemen size menbandingkan net profit after tax to capital, income or ability of the company as desired company) ".
Warsono (2004: 48) states that the economic value added (economic value added / EVA) is the difference between operating profit after tax cost of capital.According Eguene F. Brigham, in his book Financial Management (2001: 52), says that EVA is a way to measure the actual operating profitability. Debt capital costs (interest expense) is deducted when calculating net income, but these costs are not deductible when calculating the cost modalekuatis. Therefore, economically, net income is set too high compared to the profit "real". So, EVA conventional finish.EVA is calculated by subtracting the operating profit after tax to the cost of capital employed tahunandari all large companies such as Cola-Cola, AT & T, Quaker Oats, Briggs, Startton, and CSX uses EVA in achieving their success.Note that in calculating EVA we add back depreciation. Although it is not a load of cash, but the shrinkage is the cost, and thus deducted when determining net income and EVA. In calculating EVA is assumed that the actual economic depreciation on fixed assets equal to the rate of depreciation for accounting and tax purposes. If this is not an issue, then adjustments need to be made to obtain recognition of EVA, which is accurate.EVA provides a good benchmark as to whether the company has been adding value to the shareholders. Therefore, if managers focus on EVA, then it helps ensure that they beroperai a consistent way to maximize shareholder value. Note also that the EVA can be determined for the division and the company as a whole, so that the EVA provides a useful basis in determining management compensation at all levels. So at this time many companies use EVA as the main basis for determining management compensation.EVA can be applied to all the divisions that exist in companies, and the cost of capital will reflect the risk of a business unit. Total EVA of the whole division is an EVA of the company.Warsono further stated that the company could be considered healthy if you get a positive EVA.
According Warsono in his book Corporate Financial Management (2004: 48) says that the formula used for calculating EVA is:EVA = NOPAT - C. WACCWhere :NOPAT = Net Operating Profit After TexC = CapitalWACC = Weightet Average Cost of Capital
Steps for calculating EVA is:1. Calculate the amount of NOPAT2. Identify Investet capital3. Determine ratet capital cost or WACC (weightet average cost of capital)4. Calculating EVAHow to determine the amount of profit after tax (EAT / NOPAT) by Martono (2004: 24)The net sales xxxxPrices of goods sold xxxx -Gross profit xxxxGeneral sales and administration costs xxxx -Income from operations before interest and taxes (EBIT) xxxxInterest cost xxxx -Earnings before tax (EBT) xxxxTaxes xxxx -Earnings after tax (EAT) xxxx
B. Definition of Financial PerformanceBambang Rianto in his basics spending companies (1998: 253) says that financial performance is an activity to engage in financial reporting by financial standards that have been set.According to Janes C. Horne (1998: 9) in his book Finance said that the performance management policy kuangan is a measure of achievement of the company, profit is one tool used by managers. Keunagan Performance will also provide an overview on the efficiency of use of funds regarding the results would benefit can be seen after comparing the net income after taxes.Meanwhile, according to Inryo (1999: 207) in his book Financial Management said that financial performance is a financial performance achieved by the company within a certain period.Erwan Dukat (1999: 113) in his analysis tools financial statements apat mengarakan that financial performance is measured by the company's success in maintaining a favorable dividend policy until the company is able to mejunjukan the existence of a stable capital appreciation.According to Alex S. Nitisemito (1995: 13) in his spending peruasahaan said that the financial performance of a company's activities aimed at acquiring and using capital in a way that is effective and efficient.With the view of some severe sense expressed by experts above it can be concluded that financial performance is an activity of the company in measuring the company's achievements and use capital effectively and efficiently for the achievement of company objectives.C. Function of Economic Value AddedTo overcome the difficulties in measuring the financial performance of the company, analysis of economic value added can be used. With EVA analysis results can be used as a basis to provide kompenssi for executives in the form of specific incentives.With a view of the analysis of the economic value added (EVA) is positive, the company's financial performance was good and apbila result of a negative EVA means keuanganya poor performance. Kuangan performance measurement will contribute to decision-makers in terms of financial management.D. Understanding the Cost of CapitalEach company is always in need of funds to finance the company. Any funds used by the company to have capital costs that must be borne.Madal (capital) is a factor of production is needed and such other factors of production, capital has a cost. The cost of each component is cost component (component cost) of certain types of capital.The capital required to finance the company's operations consist of foreign capital and equity capital. Foreign capital is capital that comes from loan creditors suppliers and banks. While equity capital is derived from the company either from the employer (pemengang stock) or the undistributed profits (retained earnings). If a company sells securities hello to investors, the company is obliged to give results (return) desired by investors, for companies is the cost of the so-called capital costs such as interest expense, impairment charges of securities, and other costs related to the acquisition of capital.The cost of capital (cost of capital) is the real cost to be incurred by the company to obtain funds from debt, preferred stock or common stock, or retained earnings to finance an investment or operation of the company. Determining the cost of capital is intended to determine how much the real costs that must be incurred by the company to obtain the necessary funds.According to Agus Sartono in his book Financial Management (1998: 217) says that the cost of capital is the cost to be incurred or to be paid to get a good berasaldar capital debt, preferred stock, common stock and retained earnings to finance the company's investment.Further, Agus Sartono said that the preferred stock is generally more risky than the bond debt. Guarantee on invested capital and profits payment for preferred shareholders are paid after the shareholders opligasi. Thus also the preferred stock dividend payments paid after debt interest payments. Consequently preferred stock investors will ask for the rate of profit that is higher than the bond holders.
With the view of figure 1. above, the common stock is a source of funds most at risk compared with other sources of funds, this was due to the payment of dividends to ordinary shareholders are paid after the payment of interest and preferred stock. Thus the dividend payment for ordinary shares higher priority to be suspended if the company is experiencing difficulties. As kosekueansi logical, then the ordinary shareholders will ask for a greater profit than the profit rate preferred stock and debtTherefore, uncertainty of dividend payments of common stock becomes larger as compared with the interest and dividend sahampreferen. It should be noted that the determination of the cost of capital is very important for three reasons.1. Maximizing the value of the company requires the minimization of all input costs including capital costs.2. The decision requires the right investment capital cost estimate is right.3. Some other decisions such as leasing, repurchase of corporate bonds and working capital management requires a capital cost estimate.Companies are using funds from retained earnings is also no charge although hasi retained earnings derived from the company's business. Brasal capital cost of retained earnings is called SOST of retained earnings. The costs of investment profit rate (rate of retun) Required received by investors. This is because if the capital diinvestaskan in other companies will benefit. The amount of the benefit is equal to the profit if the company invest the retained earnings or equal to the rate of return you expect to receive from investment in stocks (expected rate of return on the stock).If investors expect a high level of profit that happened, which means that the decline in the purchasing power of the money you have, then it will request a higher profit for its investment. So, when predicted demand increases, the fund is oversubscribed then lead investors demand higher returns as well, so that reached the point of balance at a rate higher profits.The two factors that greatly affect the return on risk-free securities reguired rate of return for the securities will be influenced by the risk free securities. For specific securities are four components of risk that determine the risk premium, the four components are:(1). Business risk,(2). Financial risk,(3). Marketabiliti risk on securities later,(4). Interest rate risk.The capital costs can also be measured with a minimum rate of return on new investments by the company, of course, assuming that the level of investment risk barutersebut same as the risk of assets owned by the company at this time and understanding tu capital cost is the cost of capital weighted average.The capital costs can be calculated based on the cost for each source of funds or the so-called cost of capital invidual. The individual capital costs are calculated individually for each type of capital. However, if companies use multiple sources of capital, the capital cost is the cost of capital calculated weighted average (weighted average cost of capital abbreviated WACC) of total capital employed. Once again that the concept of cost of capital is intended to determine the real costs or (rill) on the use of funds from each source of funds.The concept of capital costs are closely related to the concept of the understanding required tinggkat profit (requiret rate of return). Required rate of profit can actually be seen from the two parties, ie the investor and the company. From the investor side, high and low requiret rate of return is the rate of profit (rate of return) that reflects the risk level of assets owned.If the new investment yield rates of return greater than the cost of capital, then the value will rise. Conversely, when the new investment menberikan profit level that is lower than the cost of capital, then the company's value will decline.
As for companies that use the funds (capital), the magnitude of requiret rate of return is the cost of capital (cost of capital) must be spent to get the capital. The cost of debt, for example, is not the same as the interest paid to creditors due to get the debt is not only of interest to be issued by the company, but also there are costs such as notary fees, fees, stamp duty, and others.E. Cost of EquityIn the company there are two ways of obtaining equity capital, namely: (1) the retained earnings and (2) issuing new shares. The capital costs of common stock and retained earnings are often incorporated into the cost of equity capital (cost of equity) or sometimes called the cost of ordinary share capital are costs incurred by companies which acquire funds by selling common stock or using retained earnings for investment. Profits retained by the company then used to invest in the company. Retained earnings are used by companies to investai tersebu need to be taken into account the cost of capital.Thus management can share after-tax profits earned as dividends or held it as retained earnings. If the earnings were detained, then theoretically the company must make a profit at least at the level of profits if shareholders invested itself in other investments that have the same level of risk. It's easy to understand because the profit after tax is the right of the shareholders.Theoretically the cost of retained earnings is much lower than the cost of capital from new shares. This is caused because the sale of new shares usually are the cost of emissions or flotation cost to be borne by the company. Thus the company will receive a small cash sales price of the new shares.According Martono in his book Financial Management (2004: 207) mngatakan that the capital cost of retained earnings equal to the cost of capital of ordinary shares by calculating by discounting dividends or by CAPM (Capital Asset Pricing Model). If mengguanakan CAPM approach we can use the formula as follows:Ri = Rf + (Rm-ri) i`Where :Ri: Tertiary expected stock returnsRf: a risk-free rate of returnRom: Return portfolio expected marketI: beta coefficient of stock iAccording to Agus Sartono in his book Keuagan Management (1998: 233) says that in order to calculate the capital cost of the new shares is:Ke = + gWhere :D: DividendPNET: Net Revenue per shareG: Slowing DividendF. Overall Cost of CapitalOverall capital cost is the cost of capital that takes into account the entire cost of capital used by enterprises. We all know that the company will use the capital from sources of foreign capital and the capital itself. Therefore, capital costs are taken into account the capital cost of all types of capital employed.More companies in evaluating investment proposals normal tidal viewed individually proportion of debt and use their own capital to finance the project. Kecuaili the project does require the proportion of debt and equity capital as the company's capital structure.The concept of the company's overall cost of capital (operal cost of capital) is useful in terms of assessing the proposed long-term investment. Because the cost of capital of each of the different funding sources, to establish the capital cost of the company's overall cost of capital should be calculated weighted average (weigted average cost of capital or WACC).Company to finance the investment project could mengunkan own capital, so that the cost of capital is used as a cut of rate of cost of equity capital is concerned. But often each investment project not only use one source of funds but mengguanakan using various sources of funding as well. For example, in addition to using ordinary shares, also uses preferred stock and debt.After all capital costed then we can calculate the weighted average cost (WACC). In calculating the cost of capital weighted average we are now looking for the proportion of each of the company's capital employed. Then dilikan with after-tax cost of capital.The average cost is a minimum of a capital structure needs to be maintained so that the costs do not increase. The average capital costs are minimal, reached on optimum capital structure. In other words, the optimum capital structure is a capital structure with average cost is minimum. This structure is often a benchmark company in the use of funds and resources available capital. If the company will add the necessary capital, usually the company's corporate capital gain from the arrangement or existing capital components by always keeping the cost of capital on average in order to remain the same as the cost of capital prior to the capital increase.Medium according to Agus Sartono (1998: 235) says that the way to mentukan costs teimbang average capital (WACC) is:
WACC =WhereE: Ekuity (equity)D: Debt (Debt)To: the cost of equity capitalKi: the tax rateIf there is a capital structure of preferred stock (P = preferred stock), the equation becomes:
WACC =E: Ekuity (equity)D: Debt (Debt)To: the cost of equity capitalKi: the tax rateP: Preferred stockKp: Cost of Preferred sharesG. Function Cost of CapitalCalculation of capital costs are closely linked to those imposed on corporations. The capital costs are charged on loan capital will be different than the cost of equity capital. The concept of capital cost calculation can be made on the accounts after tax (before tex base) or calculation after tax (after-tex base). The difference this concept because a tax deduction of profits from the company.But in general, the analysis of the cost of capital is based on the state after taxes. Apabiala no capital costs are calculated before taxes (such as the capital cost of the bonds), it is necessary to first adjusted to a tax before calculating the average cost of capital.The cost of capital is usually used as a measure to determine accept or reject an investment proposal (as dicont rate), by comparing the rate of profit (rate of return) of the investment proposal with the cost of capital. What is meant by the cost madal here is the overall cost of capital (overall cost of capital).
Head of the company's interest to know the state of his company mainly concerns about finances and the state of the overall company. If the results of the EVA is positive then the company is healthy but if the results of the EVA is negative, the company is not healthy.I. HypothesesWith a view of the problems it is expected that financial performance. Karya Indah Makassar Makassar in a healthy state through the analysis of positive Economic Value Added.
RESEARCH METHODS
A. Place and Time ResearchThe location or place objects for research to obtain the necessary data in writing that the author conducted research at PT. Karya Indah conducted for approximately two months.B. Method of Data CollectionThe method used in this study is the case study method, with the following stages:1. The research library (Library Research)The study is intended to collect data through penelahan in the books for literature related to the topics and problems studied.2. Research field (Field Research)This study aimed to collect data by visiting directly on the object of research. To obtain these field data, used techniques:a. Interview, the questioning and interviews conducted by the author with the parties or staff directly related to the PT. Beautiful works studied. From interviews with the authors obtained the necessary data.b. Observation, namely direct observation of the Office of PT. Karya Indah in Makassar.C. Types and sources of dataThis type of data is qualitative and quantitative data while the source of the data in this paper consists of:1. Primary data, ie data obtained from the object of research based on observations and interviews with sub-areas related to the PT. Karya Indah2. Secondary data is data obtained from the documentation either from the company or from outside the office related to the issues discussed in this thesis.D. Method of Data AnalysisThe analytical methods used to analyze the data that has been obtained is the method of analysis of Economic Value Added (EVA):According Warsono in his book Corporate Financial Management (2004: 48) says that the formula used in EVA are looking for:EVA = NOPAT - C.WACCNOPAT: operating profit after tax is called regular or EATC: Capital (capital)WACC: Weighted average caost of capital (weighted average cost of capital)To identify the amount of capital can be seen from the balance sheet on the liabilities to add up the amount of their own capital to the amount of debtIn calculating WACC we first calculate the cost of capital of each cracked capital. According to Agus Harjito Martono and financial management in his book (2004: 203) says that we can calculate the cost of capital from bank debt in the following manner:
Kb Kt = (1-t)
Where :Kt: Cost of debt after taxKb: Cost of debt before tax in the amount of interest rateT: Tax RateWhereas in calculating the cost of equity capital derived from the preferred stock can be calculated in a manner such that said Sutrisno in the book Financial Management (theories, concepts and applications) (2005: 166) says that:
Kp = x 100%
Where :Kp = Cost of Equity CapitalD = Dividends paidPn = Share PriceHow to get a WACC according to Agus Sartono (1998: 235) WACC can be calculated by the formula:
WACC =Where :E = EquityD = DebtKe = Cost of equity capitalKi = tax rateE. Operational DefinitionEconomic Value Added (economic value added / EVA) is the difference in operating profit after tax cost of capital. In the EVA company is healthy if it produces positive EVA. EVA can be applied to all existing division in the company, and the cost of capital will reflect the risk of a business unit. Jumlah EVA EVA of a division of a company.Operating profit after tax (EAT / NOPAT) is used in calculating the value of EVA. NOPAT can be seen in the financial statements of Income. Besides EAT we need to know the amount of capital and at the same time calculating the cost of capital. The cost of capital is the cost of capital that takes into account all of the costs on capital employed by the company. We all know that the company will use the capital from sources of foreign capital and equityForeign capital is capital that comes from loan creditors suppliers and banks. While equity capital is derived from the company either from the employer (pemengang stock) or the undistributed profits (retained earnings).Capital companies use more than one, then the cost of capital used in calculating EVA is the cost of capital weighted average (weighted average caost of capital / WACC).
RESULTS AND DISCUSSION
A. A Brief History of the CompanyCompany PT. Karya Indah Makassar was founded in early 1980 by Mr. A. Kadir Efendi. The Company is engaged in the expedition and use the limited liability company (PT).Company is located at Jl. This Sangir initially serve only local car rental service and other operational vehicle to smooth palayanan.In 1984 PT. Karya Indah Makassar began to expand its reach to serve the shipping kepulau between peropinsi. In 1991 up to the present a company engaged in the expedition has several facilities that support its services. These facilities are:1. Office buildings themselves are equipped with warehouse space for storage of goods before they are sent as a kepalanggan2. Vehicles for mengankut goods from the region.3. The other office equipment that supports the company's operations in carrying usahan expedisinya.Every company has a goal of establishment does not escape also PT. Karya Indah Makassar whose objective. In addition to them his purpose in service to expedite the delivery of goods and meperoleh profit which is a destination of each establishment of a company also has a destination for the development of Makassar that can creates jobs for residents of Makassar and the surrounding areas who have or want to have a supplemental income.B. Organizational StructureIn the division of tasks sometimes overlapped sometimes an employee does not know the duties and responsibilities as a Javanese employees. Organizational structure is a general description of the duties and responsibilities of each employee. In the Organizational structure we can, our bosses know and where we have to be responsible.Organizational Structure by karana it is very important for both information providers for the employees and for people who mepunyai interest with it. Organizational Structure Every company has different according to the magnitude and the extent of their respective companies.PT. Karya Indah Makassar using dual organizational structure in which authority flows from the top downwards and accountability flows from the bottom up. For more details, the following is presented the organizational structure of PT. Karya Indah Makassar.Figure 3.Organization structure. Karya Indah Makassar
C. Mechanism of ActionMechanism of action of PT. Karya Indah Makassar in accordance with the decree which has been described as follows:1. LeadersFunctions and duties are:- Implement the company's technical policy in the field of freight forwarding services.
LET'S LEARN AND SHARE
JOINT # Andiwani.blogspot.com
email waniandi@gmail.com
A. Understanding Economic Value Added (EVA)Economic value Added is a financial management system to measure economic profits in a company that states that prosperity can only be achieved if the company is able to meet all operating costs (operating costs) and the cost of capital (cost of capital)According to K. Reilly and Keith C.B. Financial Management (2001: 2) states that:"Economic value added (EVA) Is an internal management performance measure that campres net operation profit to the total cost of capital. Indecates how profitabile campany projects are as sign of mangement porformance (economic value added is internal pointing manjemen size menbandingkan net profit after tax to capital, income or ability of the company as desired company) ".
Warsono (2004: 48) states that the economic value added (economic value added / EVA) is the difference between operating profit after tax cost of capital.According Eguene F. Brigham, in his book Financial Management (2001: 52), says that EVA is a way to measure the actual operating profitability. Debt capital costs (interest expense) is deducted when calculating net income, but these costs are not deductible when calculating the cost modalekuatis. Therefore, economically, net income is set too high compared to the profit "real". So, EVA conventional finish.EVA is calculated by subtracting the operating profit after tax to the cost of capital employed tahunandari all large companies such as Cola-Cola, AT & T, Quaker Oats, Briggs, Startton, and CSX uses EVA in achieving their success.Note that in calculating EVA we add back depreciation. Although it is not a load of cash, but the shrinkage is the cost, and thus deducted when determining net income and EVA. In calculating EVA is assumed that the actual economic depreciation on fixed assets equal to the rate of depreciation for accounting and tax purposes. If this is not an issue, then adjustments need to be made to obtain recognition of EVA, which is accurate.EVA provides a good benchmark as to whether the company has been adding value to the shareholders. Therefore, if managers focus on EVA, then it helps ensure that they beroperai a consistent way to maximize shareholder value. Note also that the EVA can be determined for the division and the company as a whole, so that the EVA provides a useful basis in determining management compensation at all levels. So at this time many companies use EVA as the main basis for determining management compensation.EVA can be applied to all the divisions that exist in companies, and the cost of capital will reflect the risk of a business unit. Total EVA of the whole division is an EVA of the company.Warsono further stated that the company could be considered healthy if you get a positive EVA.
According Warsono in his book Corporate Financial Management (2004: 48) says that the formula used for calculating EVA is:EVA = NOPAT - C. WACCWhere :NOPAT = Net Operating Profit After TexC = CapitalWACC = Weightet Average Cost of Capital
Steps for calculating EVA is:1. Calculate the amount of NOPAT2. Identify Investet capital3. Determine ratet capital cost or WACC (weightet average cost of capital)4. Calculating EVAHow to determine the amount of profit after tax (EAT / NOPAT) by Martono (2004: 24)The net sales xxxxPrices of goods sold xxxx -Gross profit xxxxGeneral sales and administration costs xxxx -Income from operations before interest and taxes (EBIT) xxxxInterest cost xxxx -Earnings before tax (EBT) xxxxTaxes xxxx -Earnings after tax (EAT) xxxx
B. Definition of Financial PerformanceBambang Rianto in his basics spending companies (1998: 253) says that financial performance is an activity to engage in financial reporting by financial standards that have been set.According to Janes C. Horne (1998: 9) in his book Finance said that the performance management policy kuangan is a measure of achievement of the company, profit is one tool used by managers. Keunagan Performance will also provide an overview on the efficiency of use of funds regarding the results would benefit can be seen after comparing the net income after taxes.Meanwhile, according to Inryo (1999: 207) in his book Financial Management said that financial performance is a financial performance achieved by the company within a certain period.Erwan Dukat (1999: 113) in his analysis tools financial statements apat mengarakan that financial performance is measured by the company's success in maintaining a favorable dividend policy until the company is able to mejunjukan the existence of a stable capital appreciation.According to Alex S. Nitisemito (1995: 13) in his spending peruasahaan said that the financial performance of a company's activities aimed at acquiring and using capital in a way that is effective and efficient.With the view of some severe sense expressed by experts above it can be concluded that financial performance is an activity of the company in measuring the company's achievements and use capital effectively and efficiently for the achievement of company objectives.C. Function of Economic Value AddedTo overcome the difficulties in measuring the financial performance of the company, analysis of economic value added can be used. With EVA analysis results can be used as a basis to provide kompenssi for executives in the form of specific incentives.With a view of the analysis of the economic value added (EVA) is positive, the company's financial performance was good and apbila result of a negative EVA means keuanganya poor performance. Kuangan performance measurement will contribute to decision-makers in terms of financial management.D. Understanding the Cost of CapitalEach company is always in need of funds to finance the company. Any funds used by the company to have capital costs that must be borne.Madal (capital) is a factor of production is needed and such other factors of production, capital has a cost. The cost of each component is cost component (component cost) of certain types of capital.The capital required to finance the company's operations consist of foreign capital and equity capital. Foreign capital is capital that comes from loan creditors suppliers and banks. While equity capital is derived from the company either from the employer (pemengang stock) or the undistributed profits (retained earnings). If a company sells securities hello to investors, the company is obliged to give results (return) desired by investors, for companies is the cost of the so-called capital costs such as interest expense, impairment charges of securities, and other costs related to the acquisition of capital.The cost of capital (cost of capital) is the real cost to be incurred by the company to obtain funds from debt, preferred stock or common stock, or retained earnings to finance an investment or operation of the company. Determining the cost of capital is intended to determine how much the real costs that must be incurred by the company to obtain the necessary funds.According to Agus Sartono in his book Financial Management (1998: 217) says that the cost of capital is the cost to be incurred or to be paid to get a good berasaldar capital debt, preferred stock, common stock and retained earnings to finance the company's investment.Further, Agus Sartono said that the preferred stock is generally more risky than the bond debt. Guarantee on invested capital and profits payment for preferred shareholders are paid after the shareholders opligasi. Thus also the preferred stock dividend payments paid after debt interest payments. Consequently preferred stock investors will ask for the rate of profit that is higher than the bond holders.
With the view of figure 1. above, the common stock is a source of funds most at risk compared with other sources of funds, this was due to the payment of dividends to ordinary shareholders are paid after the payment of interest and preferred stock. Thus the dividend payment for ordinary shares higher priority to be suspended if the company is experiencing difficulties. As kosekueansi logical, then the ordinary shareholders will ask for a greater profit than the profit rate preferred stock and debtTherefore, uncertainty of dividend payments of common stock becomes larger as compared with the interest and dividend sahampreferen. It should be noted that the determination of the cost of capital is very important for three reasons.1. Maximizing the value of the company requires the minimization of all input costs including capital costs.2. The decision requires the right investment capital cost estimate is right.3. Some other decisions such as leasing, repurchase of corporate bonds and working capital management requires a capital cost estimate.Companies are using funds from retained earnings is also no charge although hasi retained earnings derived from the company's business. Brasal capital cost of retained earnings is called SOST of retained earnings. The costs of investment profit rate (rate of retun) Required received by investors. This is because if the capital diinvestaskan in other companies will benefit. The amount of the benefit is equal to the profit if the company invest the retained earnings or equal to the rate of return you expect to receive from investment in stocks (expected rate of return on the stock).If investors expect a high level of profit that happened, which means that the decline in the purchasing power of the money you have, then it will request a higher profit for its investment. So, when predicted demand increases, the fund is oversubscribed then lead investors demand higher returns as well, so that reached the point of balance at a rate higher profits.The two factors that greatly affect the return on risk-free securities reguired rate of return for the securities will be influenced by the risk free securities. For specific securities are four components of risk that determine the risk premium, the four components are:(1). Business risk,(2). Financial risk,(3). Marketabiliti risk on securities later,(4). Interest rate risk.The capital costs can also be measured with a minimum rate of return on new investments by the company, of course, assuming that the level of investment risk barutersebut same as the risk of assets owned by the company at this time and understanding tu capital cost is the cost of capital weighted average.The capital costs can be calculated based on the cost for each source of funds or the so-called cost of capital invidual. The individual capital costs are calculated individually for each type of capital. However, if companies use multiple sources of capital, the capital cost is the cost of capital calculated weighted average (weighted average cost of capital abbreviated WACC) of total capital employed. Once again that the concept of cost of capital is intended to determine the real costs or (rill) on the use of funds from each source of funds.The concept of capital costs are closely related to the concept of the understanding required tinggkat profit (requiret rate of return). Required rate of profit can actually be seen from the two parties, ie the investor and the company. From the investor side, high and low requiret rate of return is the rate of profit (rate of return) that reflects the risk level of assets owned.If the new investment yield rates of return greater than the cost of capital, then the value will rise. Conversely, when the new investment menberikan profit level that is lower than the cost of capital, then the company's value will decline.
As for companies that use the funds (capital), the magnitude of requiret rate of return is the cost of capital (cost of capital) must be spent to get the capital. The cost of debt, for example, is not the same as the interest paid to creditors due to get the debt is not only of interest to be issued by the company, but also there are costs such as notary fees, fees, stamp duty, and others.E. Cost of EquityIn the company there are two ways of obtaining equity capital, namely: (1) the retained earnings and (2) issuing new shares. The capital costs of common stock and retained earnings are often incorporated into the cost of equity capital (cost of equity) or sometimes called the cost of ordinary share capital are costs incurred by companies which acquire funds by selling common stock or using retained earnings for investment. Profits retained by the company then used to invest in the company. Retained earnings are used by companies to investai tersebu need to be taken into account the cost of capital.Thus management can share after-tax profits earned as dividends or held it as retained earnings. If the earnings were detained, then theoretically the company must make a profit at least at the level of profits if shareholders invested itself in other investments that have the same level of risk. It's easy to understand because the profit after tax is the right of the shareholders.Theoretically the cost of retained earnings is much lower than the cost of capital from new shares. This is caused because the sale of new shares usually are the cost of emissions or flotation cost to be borne by the company. Thus the company will receive a small cash sales price of the new shares.According Martono in his book Financial Management (2004: 207) mngatakan that the capital cost of retained earnings equal to the cost of capital of ordinary shares by calculating by discounting dividends or by CAPM (Capital Asset Pricing Model). If mengguanakan CAPM approach we can use the formula as follows:Ri = Rf + (Rm-ri) i`Where :Ri: Tertiary expected stock returnsRf: a risk-free rate of returnRom: Return portfolio expected marketI: beta coefficient of stock iAccording to Agus Sartono in his book Keuagan Management (1998: 233) says that in order to calculate the capital cost of the new shares is:Ke = + gWhere :D: DividendPNET: Net Revenue per shareG: Slowing DividendF. Overall Cost of CapitalOverall capital cost is the cost of capital that takes into account the entire cost of capital used by enterprises. We all know that the company will use the capital from sources of foreign capital and the capital itself. Therefore, capital costs are taken into account the capital cost of all types of capital employed.More companies in evaluating investment proposals normal tidal viewed individually proportion of debt and use their own capital to finance the project. Kecuaili the project does require the proportion of debt and equity capital as the company's capital structure.The concept of the company's overall cost of capital (operal cost of capital) is useful in terms of assessing the proposed long-term investment. Because the cost of capital of each of the different funding sources, to establish the capital cost of the company's overall cost of capital should be calculated weighted average (weigted average cost of capital or WACC).Company to finance the investment project could mengunkan own capital, so that the cost of capital is used as a cut of rate of cost of equity capital is concerned. But often each investment project not only use one source of funds but mengguanakan using various sources of funding as well. For example, in addition to using ordinary shares, also uses preferred stock and debt.After all capital costed then we can calculate the weighted average cost (WACC). In calculating the cost of capital weighted average we are now looking for the proportion of each of the company's capital employed. Then dilikan with after-tax cost of capital.The average cost is a minimum of a capital structure needs to be maintained so that the costs do not increase. The average capital costs are minimal, reached on optimum capital structure. In other words, the optimum capital structure is a capital structure with average cost is minimum. This structure is often a benchmark company in the use of funds and resources available capital. If the company will add the necessary capital, usually the company's corporate capital gain from the arrangement or existing capital components by always keeping the cost of capital on average in order to remain the same as the cost of capital prior to the capital increase.Medium according to Agus Sartono (1998: 235) says that the way to mentukan costs teimbang average capital (WACC) is:
WACC =WhereE: Ekuity (equity)D: Debt (Debt)To: the cost of equity capitalKi: the tax rateIf there is a capital structure of preferred stock (P = preferred stock), the equation becomes:
WACC =E: Ekuity (equity)D: Debt (Debt)To: the cost of equity capitalKi: the tax rateP: Preferred stockKp: Cost of Preferred sharesG. Function Cost of CapitalCalculation of capital costs are closely linked to those imposed on corporations. The capital costs are charged on loan capital will be different than the cost of equity capital. The concept of capital cost calculation can be made on the accounts after tax (before tex base) or calculation after tax (after-tex base). The difference this concept because a tax deduction of profits from the company.But in general, the analysis of the cost of capital is based on the state after taxes. Apabiala no capital costs are calculated before taxes (such as the capital cost of the bonds), it is necessary to first adjusted to a tax before calculating the average cost of capital.The cost of capital is usually used as a measure to determine accept or reject an investment proposal (as dicont rate), by comparing the rate of profit (rate of return) of the investment proposal with the cost of capital. What is meant by the cost madal here is the overall cost of capital (overall cost of capital).
Head of the company's interest to know the state of his company mainly concerns about finances and the state of the overall company. If the results of the EVA is positive then the company is healthy but if the results of the EVA is negative, the company is not healthy.I. HypothesesWith a view of the problems it is expected that financial performance. Karya Indah Makassar Makassar in a healthy state through the analysis of positive Economic Value Added.
RESEARCH METHODS
A. Place and Time ResearchThe location or place objects for research to obtain the necessary data in writing that the author conducted research at PT. Karya Indah conducted for approximately two months.B. Method of Data CollectionThe method used in this study is the case study method, with the following stages:1. The research library (Library Research)The study is intended to collect data through penelahan in the books for literature related to the topics and problems studied.2. Research field (Field Research)This study aimed to collect data by visiting directly on the object of research. To obtain these field data, used techniques:a. Interview, the questioning and interviews conducted by the author with the parties or staff directly related to the PT. Beautiful works studied. From interviews with the authors obtained the necessary data.b. Observation, namely direct observation of the Office of PT. Karya Indah in Makassar.C. Types and sources of dataThis type of data is qualitative and quantitative data while the source of the data in this paper consists of:1. Primary data, ie data obtained from the object of research based on observations and interviews with sub-areas related to the PT. Karya Indah2. Secondary data is data obtained from the documentation either from the company or from outside the office related to the issues discussed in this thesis.D. Method of Data AnalysisThe analytical methods used to analyze the data that has been obtained is the method of analysis of Economic Value Added (EVA):According Warsono in his book Corporate Financial Management (2004: 48) says that the formula used in EVA are looking for:EVA = NOPAT - C.WACCNOPAT: operating profit after tax is called regular or EATC: Capital (capital)WACC: Weighted average caost of capital (weighted average cost of capital)To identify the amount of capital can be seen from the balance sheet on the liabilities to add up the amount of their own capital to the amount of debtIn calculating WACC we first calculate the cost of capital of each cracked capital. According to Agus Harjito Martono and financial management in his book (2004: 203) says that we can calculate the cost of capital from bank debt in the following manner:
Kb Kt = (1-t)
Where :Kt: Cost of debt after taxKb: Cost of debt before tax in the amount of interest rateT: Tax RateWhereas in calculating the cost of equity capital derived from the preferred stock can be calculated in a manner such that said Sutrisno in the book Financial Management (theories, concepts and applications) (2005: 166) says that:
Kp = x 100%
Where :Kp = Cost of Equity CapitalD = Dividends paidPn = Share PriceHow to get a WACC according to Agus Sartono (1998: 235) WACC can be calculated by the formula:
WACC =Where :E = EquityD = DebtKe = Cost of equity capitalKi = tax rateE. Operational DefinitionEconomic Value Added (economic value added / EVA) is the difference in operating profit after tax cost of capital. In the EVA company is healthy if it produces positive EVA. EVA can be applied to all existing division in the company, and the cost of capital will reflect the risk of a business unit. Jumlah EVA EVA of a division of a company.Operating profit after tax (EAT / NOPAT) is used in calculating the value of EVA. NOPAT can be seen in the financial statements of Income. Besides EAT we need to know the amount of capital and at the same time calculating the cost of capital. The cost of capital is the cost of capital that takes into account all of the costs on capital employed by the company. We all know that the company will use the capital from sources of foreign capital and equityForeign capital is capital that comes from loan creditors suppliers and banks. While equity capital is derived from the company either from the employer (pemengang stock) or the undistributed profits (retained earnings).Capital companies use more than one, then the cost of capital used in calculating EVA is the cost of capital weighted average (weighted average caost of capital / WACC).
RESULTS AND DISCUSSION
A. A Brief History of the CompanyCompany PT. Karya Indah Makassar was founded in early 1980 by Mr. A. Kadir Efendi. The Company is engaged in the expedition and use the limited liability company (PT).Company is located at Jl. This Sangir initially serve only local car rental service and other operational vehicle to smooth palayanan.In 1984 PT. Karya Indah Makassar began to expand its reach to serve the shipping kepulau between peropinsi. In 1991 up to the present a company engaged in the expedition has several facilities that support its services. These facilities are:1. Office buildings themselves are equipped with warehouse space for storage of goods before they are sent as a kepalanggan2. Vehicles for mengankut goods from the region.3. The other office equipment that supports the company's operations in carrying usahan expedisinya.Every company has a goal of establishment does not escape also PT. Karya Indah Makassar whose objective. In addition to them his purpose in service to expedite the delivery of goods and meperoleh profit which is a destination of each establishment of a company also has a destination for the development of Makassar that can creates jobs for residents of Makassar and the surrounding areas who have or want to have a supplemental income.B. Organizational StructureIn the division of tasks sometimes overlapped sometimes an employee does not know the duties and responsibilities as a Javanese employees. Organizational structure is a general description of the duties and responsibilities of each employee. In the Organizational structure we can, our bosses know and where we have to be responsible.Organizational Structure by karana it is very important for both information providers for the employees and for people who mepunyai interest with it. Organizational Structure Every company has different according to the magnitude and the extent of their respective companies.PT. Karya Indah Makassar using dual organizational structure in which authority flows from the top downwards and accountability flows from the bottom up. For more details, the following is presented the organizational structure of PT. Karya Indah Makassar.Figure 3.Organization structure. Karya Indah Makassar
C. Mechanism of ActionMechanism of action of PT. Karya Indah Makassar in accordance with the decree which has been described as follows:1. LeadersFunctions and duties are:- Implement the company's technical policy in the field of freight forwarding services.
LET'S LEARN AND SHARE
JOINT # Andiwani.blogspot.com
email waniandi@gmail.com
0 Komentar untuk "Analysis of Economic Value Added (Economic Value Added) in the condition of financial performance at PT. Karya Indah Makassar. So it can be beneficial for the company in taking a policy and also for investors in investing their funds in companies PT. Karya Indah Makassar"