THE DETERMINANTS OF FINANCIAL HEALTH RATIOS FOR STATE-OWNED ENTERPRISE (SOE) ON AIRLINES INDUSTRY FOR THE PERIODS OF 2011 – 2017 A CASE STUDY OF PT GARUDA INDONESIA (PERSERO), TBK

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Daryanto, Wiwiek Mardawiyah (2018) THE DETERMINANTS OF FINANCIAL HEALTH RATIOS FOR STATE-OWNED ENTERPRISE (SOE) ON AIRLINES INDUSTRY FOR THE PERIODS OF 2011 – 2017 A CASE STUDY OF PT GARUDA INDONESIA (PERSERO), TBK. Working Paper. CV. Putra Media Nusantara (PMN), Surabaya. (Unpublished)

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THE DETERMINANTS OF FINANCIAL HEALTH RATIOS FOR STATE-OWNED ENTERPRISE (SOE) ON AIRLINES INDUSTRY FOR THE PERIODS OF 2011 – 2017 A CASE STUDY OF PT GARUDA INDONESIA (PERSERO), TBK_compressed.pdf
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Abstract

In this globalization era, airlines industry has become one of the fastest-growing industries in the Asia Pacific region, specifically for Indonesia. As a developing country with the growing society, the fast and ease in connectivity among countries is demanded in Indonesia. Additionally, the geographically strategic position of Indonesia that stretches from Sabang to Marauke has triggered Indonesia to get more benefits in tourism sector, both domestically and internationally. Air transport is one of the ways which provides the fastest mode of transport for regional, national, and international scales. In Indonesia, the airlines industry is controlled and dominated by State-Owned companies, one of them is PT Garuda Indonesia (Persero), Tbk. PT Garuda Indonesia (Persero), Tbk as the biggest airline that has obtained international recognitions in regards of its quality and performance. This research seeks to analyze and evaluate the financial health condition of PT Garuda Indonesia (Persero), Tbk or Garuda Indonesia Airline (GIA) as a State-Owned Enterprise (BUMN) for 2011 – 2017. The ratio of descriptive financial analysis (FRA) is used to describe, measure, and evaluate the financial health condition of the GIA. Decree No. KEP-100 / MBU / 2002 issued used by the Indonesian Ministry of State-Owned Enterprises to validate results eight financial ratios that investigate namely, Return on Equity, Return on Investment, Cash Ratio, Current Ratio, Collection Period, Inventory Turnover, Total Asset Turnover, Total Equity to Total assets. The results show that in the last seven years, GIA has achieved financial performance level of healthy condition. However, based on Industry Benchmarks of Weighted Average Cost of Capital (WACC) validation, GIA performance in the last seven years, 2011 – 2017 cannot exceed industry benchmarks. Furthermore, this research adds to knowledge in the financial literature. It also provides strong insights for managers in the aviation industry.

Item Type: Monograph (Working Paper)
Subjects: H Social Sciences > HG Finance
Divisions: Research And Community Empowerment > Research Report
Depositing User: Dr. Wiwiek Mardawiyah Daryanto
Date Deposited: 30 Nov 2020 03:31
Last Modified: 22 Dec 2021 04:09
URI: http://repository.ipmi.ac.id/id/eprint/988

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