CORPORATE FINANCE

FINAL EXAMINATION
PT Unilever Tbk.
As one of the leading consumer goods company in Indonesia, PT Unilever Tbk. was
established on December 5, 1933. Although PT Unilever Tbk has lots of subsidiary operating in
various industrial sector, such as service and real estate leasing, marketing research services and
management consulting, import trade, PT Unilever Tbk.’s main industry is production and
distributor of various global brand consumer goods. Moreover, to support PT Unilever in
consumer goods industry, it always go with the customer-driven expectation value, which
eventually produce lots of iconic global and local brand worldwide, especially in Indonesia.
These brands produce by PT Unilever is one of the strategy in order to achieve PT Unilever’s
main long term goal, which is to build sustainable living commonplace though profitable and
sustainable growth by Unilever Sustainable Living Plan. This plan is to grow the business while
ensuring to protect environment.
PT Unilever become a public company in the year of 1981 and being listed firstly in Jakarta and
Surabaya Stock Exchanges in 1982, which is now already widely listed in Indonesia Stock
Exchange. During the last decades, PT Unilever Tbk has shown an extremely high performance
in its operation efficiency which cause PT Unilever Tbk to be the fifth largest company in
Indonesia Stock Exchange on its market capitalisation during 2019.
PT UNILEVER INDONESIA Tbk
SHORT TERM SOLVENCY
2017 2018 2019
Current Assets
Current Liabilities
=Rp7,941,635,000,000 / =Rp8,257,910,000,000 / =Rp8,530,334,000,000 /
Rp12,532,304,000,000 Rp11,273,822,000,000 Rp13,065,308,000,000
Current Ratio 0.63 0.73 0.65
Current Assets-Inventory
Current Liabilities
=(Rp7,941,635,000,000 - =(Rp8,257,910,000,000 - =(Rp8,530,334,000,000 -
Rp2,393,540,000,000) / Rp2,658,073,000,000) / Rp2,429,234,000,000) /
Rp12,532,304,000,000 Rp11,273,822,000,000 Rp13,065,308,000,000
Quick Ratio 0.44 0.50 0.47
LONG TERM SOLVENCY
2017 2018 2019
Total Debt Ratio Total asset - total equity
Total assets
=Rp13,733,025,000,000 / =Rp12,943,202,000,000 / =Rp15,367,509,000,000 /
Rp18,906,413,000,000 Rp20,326,869,000,000 Rp20,649,371,000,000
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FINAL EXAMINATION
0.73 0.64 0.74
EBIT
Interest
=(Rp9,371,562,000,000 + =(Rp12,148,087,000,000 + =(Rp9,901,772,000,000 +
Rp127,682,000,000) / Rp191,900,000,000) / Rp230,230,000,000) /
Times Interest Rp127,682,000,000 Rp191,900,000,000 Rp230,230,000,000
Earned 74.40 64.30 44.01
ASSET MANAGEMENT, OR TURNOVER, MEASURES
2017 2018 2019
INVENTORY
COGS
Average inventory
=Rp19,984,776,000,000 / =Rp20,697,246,000,000 / =Rp20,893,870,000,000 /
((Rp2,318,130,000,000 + ((Rp2,393,540,000,000 + ((Rp2,658,073,000,000 +
Rp2,393,540,000,000) / 2) Rp2,658,073,000,000) / 2) Rp2,429,234,000,000) / 2)
Inventory Turnover 8.48 8.19 8.21
RECEIVABLE
Sales
Account receivables
=Rp41,204,510,000,000 / =Rp41,802,073,000,000 / =Rp42,922,563,000,000 /
((Rp3,708,527,000,000 + ((Rp4,715,554,000,000 + ((Rp4,983,471,000,000 +
Receivables Rp4,715,554,000,000) / 2) Rp4,983,471,000,000) / 2) Rp5,335,489,000,000) / 2)
Turnover 9.78 8.62 8.32
365 days
Receivable turnover
Days' Sales in =365 / 9.78 =365 / 8.62 =365 / 8.32
Receivables 37.31 42.34 43.87
ASSET
Sales
Net fixed asset
=Rp41,204,510,000,000 / =Rp41,802,073,000,000 / =Rp42,922,563,000,000 /
Fixed asset Rp10,964,778,000,000 Rp12,068,959,000,000 Rp12,119,037,000,000
Turnover 3.76 3.46 3.54
Sales
Total assets
=Rp41,204,510,000,000 / =Rp41,802,073,000,000 / =Rp42,922,563,000,000 /
Total Asset Rp18,906,413,000,000 Rp20,326,869,000,000 Rp20,649,371,000,000
Turnover 2.18 2.06 2.08
PROFITABILITY MEASURES
2017 2018 2019
Net Profit Margin Net income
Sales
=(Rp7,004,562,000,000 / =(Rp9,081,187,000,000 / =(Rp7,392,837,000,000 /
Rp41,204,510,000,000) x 100% Rp41,802,073,000,000) x 100% Rp42,922,563,000,000) x 100%
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FINAL EXAMINATION
17.00% 21.72% 17.22%
Net income
Total assets
=(Rp7,004,562,000,000 / =(Rp9,081,187,000,000 / =(Rp7,392,837,000,000 /
Rp18,906,413,000,000) x 100% Rp20,326,839,000,000) x 100% Rp20,649,371,000,000) x 100%
Return on Assets 37.05% 44.68% 35.80%
Net income
Total equity
=(Rp7,004,562,000,000 / =(Rp9,081,187,000,000 / =(Rp7,392,837,000,000 /
Rp5,173,388,000,000) x 100% Rp7,383,667,000,000) x 100% Rp5,281,862,000,000) x 100%
Return on Equity 135.40% 122.99% 139.97%
 CORPORATE FINANCE
FINAL EXAMINATION
PT Indofood Sukses Makmur, Tbk
PT Indofood Sukses Makmur, Tbk (will be referred as INDF) is one of the biggest
manufacturing company based in Indonesia with more than 40 products produced, such as instant
noodle, snacks, flavouring, and a wide variety of drinks. As INDF offers an extensive choice of
basic necessities and products needed by the consumer in all age as well as market segments
where many of the brands manufactured by INDF are considered to be lead their respective field,
securing a strong foundation in Indonesian market. They succeed in doing so thanks to several
important factors and strategies such as achieving and maintaining customer loyalty and trust and
combined with a well-designed and extensive distribution network, INDF successfully distribute
their product evenly throughout the country.
With the increasing demand and number of product manufactured by PT Indofood Sukses
Makmur, Tbk, at present time they have more than 50 factories spread throughout the main
provinces in Indonesia in an effort to fulfil the market’s demand efficiently and effectively,
ensuring the quality and the availability of the product within the area. Products manufactured by
PT Indofood Sukses Makmur, Tbk have also entered the international market of more than 60
countries worldwide such as in Australia, Nigeria, United Arab Emirates and many more.
PT INDOFOOD Sukses Makmur Tbk
SHORT TERM SOLVENCY
2017 2018 2019
Current Assets
Current Liabilities
=Rp32,515,399,000,000 / =Rp33,272,618,000,000 / =Rp31,403,445,000,000 /
Rp21,637,763,000,000 Rp31,204,102,000,000 Rp24,686,862,000,000
Current Ratio 1.50 1.07 1.27
Current Assets-Inventory
Current Liabilities
=(Rp32,515,399,000,000 - =(Rp33,272,618,000,000 - =(Rp31,403,445,000,000 -
Rp9,690,981,000,000) / Rp11,644,156,000,000) / Rp9,658,705,000,000) /
Rp21,637,763,000,000 Rp31,204,102,000,000 Rp24,686,862,000,000
Quick Ratio 1.05 0.69 0.88
LONG TERM SOLVENCY
2017 2018 2019
Total Debt Ratio Total asset - total equity
Total assets
=Rp50,318,096,000,000 / =Rp53,182,723,000,000 / =Rp53,876,594,000,000 /
((Rp8,469,821,000,000 ((Rp9,690,181,000,000 + ((Rp11,644,156,000,000 +
+Rp9,690,981,000,000) / 2 Rp11,644,156,000,000) / 2) Rp9,658,705,000,000) / 2)
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FINAL EXAMINATION
5.54 4.99 5.06
EBIT
Interest
=(Rp7,658,554,000,000 =(Rp7,446,966,000,000 + =(Rp8,749,397,000,000 +
+Rp1,486,027,000,000) / Rp Rp2,022,215,000,000) / Rp1,727,018,000,000) /
Times Interest 1,486,027,000,000 Rp2,022,215,000,000 Rp1,727,018,000,000
Earned 6.15 4.68 6.07
ASSET MANAGEMENT, OR TURNOVER, MEASURES
2017 2018 2019
INVENTORY
COGS
Average inventory
=Rp50,318,096,000,000 / =Rp53,182,723,000,000 / =Rp53,876,594,000,000 /
((Rp8,469,821,000,000 ((Rp9,690,181,000,000 + ((Rp11,644,156,000,000 +
+Rp9,690,981,000,000) / 2 Rp11,644,156,000,000) / 2) Rp9,658,705,000,000) / 2)
Inventory Turnover 5.54 4.99 5.06
RECEIVABLE
Sales
Account receivables
=Rp70,186,618,000,000 / =Rp73,394,728,000,000 / =Rp76,592,955,000,000 /
((Rp5,204,517,000,000 + ((Rp6,852,885,000,000 + ((Rp6,572,676,000,000 +
Receivables Rp6,852,885,000,000) / 2) Rp6,572,676,000,000) / 2) Rp5,964,410,000,000) / 2)
Turnover 11.64 10.93 12.22
365 days
Receivable turnover
Days' Sales in =365 / 11.64 =365 / 10.93 =365 / 12.22
Receivables 31.35 33.38 29.87
ASSET
Sales
Net fixed asset
=Rp41,204,510,000,000 / =Rp41,802,073,000,000 / =Rp42,922,563,000,000 /
Fixed asset Rp10,964,778,000,000 Rp12,068,959,000,000 Rp12,119,037,000,000
Turnover 2.36 1.73 1.78
Sales
Total assets
=Rp41,204,510,000,000 / =Rp41,802,073,000,000 / =Rp42,922,563,000,000 /
Total Asset Rp18,906,413,000,000 Rp20,326,869,000,000 Rp20,649,371,000,000
Turnover 0.80 0.76 0.80
PROFITABILITY MEASURES
2017 2018 2019
Net Profit Margin Net income
Sales
=(Rp5,145,063,000,000 / =(Rp4,961,851,000,000 / =(Rp5,902,729,000,000 /
Rp70,186,618,000,000) x 100% Rp73,394,728,000,000) x 100% Rp76,592,955,000,000) x 100%
 CORPORATE FINANCE
FINAL EXAMINATION
7.33% 6.76% 7.71%
Net income
Total assets
=(Rp5,145,063,000,000 / =(Rp4,961,851,000,000 / =(Rp5,902,729,000,000 /
Rp87,939,488,000,000) x 100% Rp96,537,796,000,000) x 100% Rp96,198,559,000,000) x 100%
Return on Assets 5.85% 5.14% 6.14%
Net income
Total equity
=(Rp5,145,063,000,000 / =(Rp4,961,851,000,000 / =(Rp5,902,729,000,000 /
Rp46,756,724,000,000) x 100% Rp49,916,800,000,000) x 100% Rp54,202,488,000,000) x 100%
Return on Equity 11.00% 9.94% 10.89%

Ratio Comparison
I. Short Term Solvency
2017 2018 2019
SHORT TEM SOLVENCY
UNVR INDF UNVR INDF UNVR INDF
Current Ratio 0.63 1.50 0.73 1.07 0.65 1.27
Quick Ratio 0.44 1.05 0.50 0.69 0.47 0.88

As one of the ratios that is used to measure company’s capability to settle their
short-term debt, current ratio provide information regarding how company can use its
current assets to pay its current liability. As we can see, although current ratio of PT
Unilever Tbk. is having slight fluctuation from 2017 to 2019, PT Unilever Tbk. is still
in the good condition of settling its current liabilities with its current assets. During the
year of 2018, PT Unilever achieving its highest current ratio amount, 0.73. However, it
continues to decline slightly to 0.65 in 2019. Meanwhile, PT Indofood Sukses Makmur
Tbk on the other side is also having fluctuating rate of current ratio during the past
three years with the highest current ratio of 1.50 in 2017.
Similar with current ratio, quick ratio is an indicator for companies to measure their
ability of settling short-term debt using the most liquid assets, excluding inventories.
As we can see, despite having fluctuation of quick ratio during 2017 to 2019, PT
Unilever Tbk still having a slight increase during the last three years and achieve 0.47
during 2019. Although PT Unilever Tbk may not have a very good quick ratio since its
amount is below 1, it is still good in maintaining its operating expenses and current
liabilities. Despite showing moderate performance in few ratios such as current, quick
 CORPORATE FINANCE
FINAL EXAMINATION
ratio, PT Unilever can be concluded to have performed well in their liquidity as a
whole. Meanwhile, PT Indofood Sukses Makmur Tbk’s quick ratio decreased over the
last three years. However, it is still better than PT Unilever Tbk observing from its
amount with the highest amount of 1.05 in 2017.
Overall, it can be said that PT Indofood Sukses Makmur Tbk had a better short-term
solvency during the last three years compared to PT Unilever Tbk since PT Indofoos
Sukses Makmur Tbk had a more consistent and higher rate of current and quick ratio.
II. Long Term Solvency
LONG TERM SOLVENCY 2017 2018 2019
MEASURES UNVR INDF UNVR INDF UNVR INDF
Total Debt Ratio 0.73 0.47 0.64 0.48 0.74 0.44
Times Interest Earned 74.40 6.15 64.30 4.68 44.01 6.07
Total debt ratio shows portion of company’s asset that is financed by debt. It can
be seen from the table above that total debt ratio of PT Unilever Tbk has been slightly
high due to loan from banks that are slightly increasing from year to year, especially in
2019 to 0.74. Table above show a consistent result as total debt ratio at which PT
Unilever Tbk maintain a quite balanced finance leverage between equity and debt
starting from 3.26 in 2015 to 2.75 in 2018. However, equity financing is decreasing
slightly to 3.91 due to increasing of debt portion in bank loan for 2019. To cope with
interest coming from moderate portion of debt, PT Unilever has shown a good sign by
its times interest earned, which depicts company ability to cover interest of debt using
its income. It shows that from the past five years, PT Unilever has maintain to earn
high income so that it surely have high capability to cover its interest. In 2015, PT
Unilever shows 65.96 times interest earned and continued to increase until 2017 to
74.40 and then starting to decrease to 44.01 in 2019. Overall, PT Unilever Tbk has
shown a moderate level of financial leverage and promising financial stability by its
ability to repay its interest debt despite moderate level of debt financing. On the other
side, PT Indofood Sukses Makmur Tbk. had a moderate amount of total debt ratio
during the last three years. However, its times interest earned fluctuated a lot, starting
from 6.15 times interest earned in 2017, it reached the lowest times interest earned in
2018, with the amount of 4.68.
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FINAL EXAMINATION
Overall, it can be seen that PT Unilever Tbk has a much better long-term solvency
compared to PT Indofood Sukses Makmur Tbk. concerning from significant high of
times interest earned reaching 74.40. Moreover, observing from its total debt ratio, PT
Unilever Tbk is also having quite significant difference of total debt ratio amount
compared to PT Indofood Sukses Makmur Tbk.

III. Turnover Ratios

2017 2018 2019
ASSET MANAGEMENT, OR TURNOVER, MEASURES
UNVR INDF UNVR INDF UNVR INDF
INVENTORY
Inventory Turnover 8.48 5.54 8.19 4.99 8.21 5.06
Days' Sales in Inventory 43.03 65.87 44.54 73.21 44.44 72.16

RECEIVABLES
Receivables Turnover 9.78 11.64 8.62 10.93 8.32 12.22
Days' Sales in Receivables 37.31 31.35 42.34 33.38 43.87 29.87

ASSET TURNOVER RATIOS

Fixed asset Turnover 3.76 2.36 3.46 1.73 3.54 1.78
Total Asset Turnover 2.18 0.80 2.06 0.76 2.08 0.80
As one of the part of turnover ratio, inventory turnover provide information
regarding number of times within a year that inventory has been sold and replaced.
Meanwhile, days’ sales in inventory, which is ratio that is closely related with
inventory turnover. Days’ sales in in inventory is the average number of days needed
by company in order to sell its inventories. It can be seen that from the table, inventory
turnover and days’ sales in inventory for PT Unilever Tbk. is having opposite slight
fluctuating trend, the lower the inventory turnover, the more days inventory are held.
Although having lower turnover rate from 8.36 in 2017 to 8.21 in 2019, PT Unilever
Tbk. overall is having a good condition of managing its large amount of inventory.
Meanwhile, PT Indofood Sukses Makmur Tbk. is having lower inventory turnover
compared to PT Unilever Tbk with the highest turnover reaching 5.54 in 2017. Despite
having lower inventory turnover, PT Indofood Sukses Makmur Tbk is still can be said
to maintain a good rate of inventory turnover. This resulted in longer days’ sales in
inventory with highest days in 2018 for 73.21.
 CORPORATE FINANCE
FINAL EXAMINATION
Meanwhile, to analyse receivable operation efficiency in PT Unilever Tbk., there
are two ratios which is receivable turnover, measuring number of times company
collect its average amount of receivable in a year and days’ sales in receivables which
measure number of days needed to collect receivable from a sales. It can be seen that
during the past five years, PT Unilever Tbk.’s receivable turnover has been decreasing
which cause days’ sales in receivables to be increasing. At the end of 2019, company’s
achieving highest collection period, which is 43.87 days compared to previous years.
This was due to the company’s policy which in the long term can reduce risk of
default by customers. Meanwhile, it can be seen that PT Indofood Sukses Makmur
Tbk. has a higher receivable turnover compared to PT Unilever Tbk. with highest
receivable turnover of 12.22 in 2019. This eventually will result in lower days’ sales in
receivables.
Another ratio to be observed in turnover rate is regarding efficiency of asset
management. Asset turnover tells us regarding how company can utilize their asset in
generating revenue. In other words, it is measuring the assets efficiency. As we can see
from the table, although there is a slight decrease during the past three years in fixed
asset turnover from PT Unilever Tbk. from 4.01 to 3.54, it still maintain a steady trend
of total asset turnover throughout the past five years. Thus, it can be seen that PT
Unilever Tbk is still having a good management in its assets. Overall, PT Unilever
Tbk can be said to have a good management in its turnover rate. Despite having better
receivable turnover ratio, PT Indofood Sukses Makmur Tbk has declining rate of fixed
asset ratio over the last three years period.
Overall, it can be seen that PT Indofood Sukses Makmur Tbk is still having a
better turnover rate observing from its inventory and receivable turnover rate that
eventually result in lower days’ of sales and receivables.

IV. Profitability
PROFITABILITY 2017 2018 2019
MEASURES UNVR INDF UNVR INDF UNVR INDF
Net Profit Margin 17.00% 7.33% 21.72% 6.76% 17.22% 7.71%
Return on Assets 37.05% 5.85% 44.68% 5.14% 35.80% 6.14%
Return on Equity 135.40 11.00% 122.99 9.94% 139.97 10.89%
 CORPORATE FINANCE
FINAL EXAMINATION
% % %
As we can see, PT Unilever Tbk. net profit margin, net profit collected in terms of
revenue dollar has been fluctuating with increasing trend throughout these years.
Starting from earning 17% net profit margin in 2017, PT Unilever Tbk.’s income has
been increasing until it reach 21.72% net profit margin for 2018. However, PT
Unilever Tbk. net profit decrease slightly during 2019.Comparing to its assets, PT
Unilever Tbk. is observed to have slight fluctuated trend of return on asset, which is
efficiency of company to utilize its asset to generate income. Despite fluctuation in
trend during the past three years, PT Unilever Tbk. can be said to be maintaining an
efficient use to its assets depicted by increasing of income when compare to its asset
acquisition in the year of 2018 with 44.68% of return on asset. Meanwhile, another
measurement of profitability in PT Unilever Tbk. is its return on equity (ROE), which
is rate of return that common stock shareholder will receive comparing to their
investment. In other words, it can be said that return on equity measures how well
company is performing in terms of earning profit for shareholders. This is also one of
the most important factor that serve as shareholders’ consideration when they want to
invest. As we can see from the table, throughout the year, PT Unilever Tbk. has been
maintaining extremely good return on equity starting from 135.40% in 2017 to the
maximum ROE achieved in 2019 to 139.97%. Meanwhile, it can be seen that PT
Indofood Sukses Makmur Tbk is having much lower net profit margin that fluctuated
during the last three years with the lowest net profit margin in 2017 with the
percentage of 6.76%. The same case goes to return on assets, at which PT Indofood
Sukses Makmur Tbk. is having far lower return on assets compared to PT Unilever
Tbk with the average rate of 5-6% during the last three years. The last comparison is
regarding the return on equity, PT Indofood Sukses Makmur is also having a
significant decrease compared to PT Unilever with average rate lies on 9-11%.
Overall it can be seen that, PT Unilever Tbk. is having a far better performance
compared to PT Indofood Sukses Makmur Tbk. concerning from profitability aspects
that consist of net profit margin, return on asset and also return on equity.
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FINAL EXAMINATION