Ifp Indonesia and the Business Model

The current cash debt ratio only measures the ability of a firm 's cash, along with investments easily converted into cash, to pay its short-term obligations. In 2007, the company has a current cash debt ratio greater than 1 and is in better financial shape than in 2006, when the ratio was less than 1.

The company’s financial statements appear to be quite clear and strong as compared to the industry. Still the operating costs are high but average as compared with the industry. The reasons behind the prices might be the high cost of commodities,

The Current Ratio indicates if a company is capable of repaying its debits and liabilities. If the percentage of the ratio is less than 1 it suggests that the company will not be able to repay its debts, the higher the ratio is above 1, indicates that the company is in good health and will be able to repay its debts. It seems that CanGo is in a better position to pay of its debts compared to Amazon since Amazon’s Current Ratio is 1.33 and CanGo’s Ratio is 5.38. If a company cannot pay its debts, it does not necessarily mean that it file for

The debt ratio explains the amount of debt maintained by both respective companies, and represents the amount of debt used by the company to finance business operations and is

Current Ratio “To calculate the current ratio, we divide current assets by current liabilities. More liquidity is better because it means that the firm has a greater ability, at least in the short term, to make payments” (Parrino, Kidwell, & Bates, 2012).

Credit ratio requirement: The company covenants that it will not permit current assets at any time to be less than, for example, 150 percent of current liabilities.

Low Inventory Trunover: the product sits 255 days on average in inventory before being sold;

When comparing the debt-to-assets ratio of McDonalds and Wendys, you have to divide the firms total liabilities by their total assets. Essentially, the debt-to-assets ratio is the primary indicator of the firms debt management. As the ratio increases or decreases, it indicates the firms changing reliance on borrowed resources. The lower the ratio the more efficient the firm will be able to

Stockholders will be happy that the managers of the firm are not wasting any money and working hard to pay for the interest expense for the debt holders; as a default brings the company to the brink of bankruptcy. In addition issuing debts will minimize or prevent any unwanted incentives giving room for the better growth of the company.

It is important to create a context when looking at funding structure as each industry has different debt to equity ratio benchmarks, as some industries tend to use more debt financing than others. A debt ratio of .5 means that there are half as many liabilities than there is equity. In other words, the assets of the company are funded 2-to-1 by investors to creditors. This means that investors own 66.6 cents of every dollar of company assets while creditors only own 33.3 cents on the dollar.A debt to equity ratio of 1 would mean that investors and creditors have an equal stake in the business assets. A lower debt to equity ratio usually implies a more financially stable business. Companies with a higher debt to equity ratio are considered

Since the early 1980’s palm oil has more than tripled globally primarily in Indonesia. “Most of this expansion has occurred in Indonesia, where the total land area of oil palm plantations increased by over 2100 per cent (more than 22 times greater) over the same period, growing to 4.6 million hectares”. The primary source of supply and production of palm oil is through state owned, big private corporations, and smallholder farmers. “State-owned plantations play a modest role in the Indonesian palm oil industry as big private enterprises (such as the Wilmar Group and Sinar Mas) produce approximately half of total Indonesian production. Smallholder farmers account for around 35 percent of cultivated land”. Today there are nearly ten million hectares of land in Indonesia solely dedicated to the plantation of this commodity. Individual smallholder farmers own between two and ten hectares of land for their palm oil farmland. Plantations are located in rural areas

Debt ratio helps in comparing total assets and total liabilities. If you have more liabilities it means you have lesser equity and therefore an increased leverage position.

Monthly operations is important, but it also depends on company performance in particular areas of activity. Performance in the marketplace influences profitability, and in the case for Bintang Harapan Desa, their heart and soul lies in the production of crude palm oil. Nearly 4,500-5,000 tons of Crude Palm oil is made monthly to be distributed to buyers who are mainly cooking oil manufacturers and biodiesel manufacturers. The key indicator on overall performance of market operation are market share and market ranking by sales volume. As of now, Indonesia is the largest producer of crude palm oil, producing more than 20.9 million tonnes. Despite Indonesia being the largest producer, there are only a few businesses that are in the business of palm oil making; Bintang Harapan Desa is one of the few. Thus, a substantial market share and being one of the top supplier is a factor to determine the overall performance too, since it allows market influence on pricing and are more likely to be more

Indonesia is a member of the World Trade Organization, and therefore is committed to lowering its trade barriers. The WTO publishes statistics on tariffs that illustrate that, in general, the Indonesian trade market

Dipandang dari sejarah yang dimiliki oleh PT. DI, terdapat beberapa permasalahan internal yang dimiliki oleh satu-satunya perusahaan produsen pesawat di Indonesia bahkan di Asia Tenggara ini, antara lain :