Analysis of Long-Term Financial Management Policy Case Study PT Sierad Produce Tbk

Abstract

The company's long-term financial policy is the policy that is associated with a model of the enterprise. Corporate funding can come from debt or equity. The company's equity capital can originate from own capital and shareholders as well as bonds.

The purpose of this research is to identify on PT Sierad Produce Tbk; to find out the sources of capital used by the company; to know the performance of the company, and long-term financial policy.

The results of this study showed that analysis of TP Sierad Produce Tbk more dominant use of equity in debt for the purposes of the company's capital. This is indicated by the ratio of debt to equity ratio which was only reached 48.37%, meaning that only 48.37% venture capital is funded by the equity that comes from its own capital and shareholders. The toughest issue facing the company is a matter of very high operating expenses, due to the price of chicken dropped below the cost of goods production and the company should sell loss because if not for sale will add to the burden of operational, while chicken prices in the more elderly lower. In the year 2015 is the year that the weight for the company in that year suffered a loss of up to 332 billion which caused many factors but by borrowing long-term debt the company succeeded in lowering the level of loss that very significant though still many deficiencies within the company and still losing money in of 68 billion, but it is an increase in the need to preserve. Things to do by the company is expanding exports of its products because the company needs for the production of raw materials in use are still imported and hit its high operating costs.

Keywords: financial management, long-term funding, financial performance, financial ratios