UNSTABLE GROWTH COMPANY VS. ITS BENCHMARK FIRM: IS IT FINANCIALLY HEALTHY? A CASE STUDY USING FINANCIAL PERFORMANCE ANALYSIS

Abstract

Abstract: Growth is something that must be upheld throughout the existence of a company. It is vital to be pursued to keep the business running towards their goals. Growth can be seen from a healthy or competent financial condition that makes the firm has a competitive position in the marketplace. Thus, growth of a company must be stable in order to make more accurate measures for the long-term period. Therefore, this study aims to identify the financial strengths and weaknesses of PT Catur Sentosa Adiprana Tbk (CSAP) in terms of their unstable growth and aggressive target which can be attained through financial performance analysis. Financial performance analysis can be done by using financial ratio that has been standardized and able to be compared across firms in the industry. The results showed that the firm have poor performance in liquidity, debt, and profitability ratios. In which, the firm is not capable enough in meeting their short-term liabilities, has high level of financial risks, and poor in doing their operations. On the other hand, the firm is able to performs well in doing their business practices which can be seen from its activity ratio. Nevertheless, the firm position is still below its emulated company and they need to find an appropriate strategy to improve their performance so that CSAP can achieve their vision to be as good as the emulated company.