i EVALUATING THE DISPROPORTIONAL OF INCOME STATEMENT AND IMPROVING FINANCIAL PERFORMANCE OF NECCIS COMPANY FINAL PROJECT By MUHAMMAD BIMA LUPHDIKA 19215016 Bachelor of Entrepreneurship Program School of Business and Management Institut Teknologi Bandung 2018 ii (This page is intentionally left blank) i EVALUATING THE DISPROPORTIONAL OF INCOME STATEMENT AND IMPROVING FINANCIAL PERFORMANCE OF NECCIS COMPANY Muhammad Bima Luphdika ID No: 19215016 Undergraduate Program School of Business and Management Institut Teknologi Bandung Supervisor: Dr. Sylviana Maya Damayanti, CFP. ® ABSTRACT The economy in the country is strongly supported by the growth of small and medium enterprises. Small and medium enterprises that developed in the Bandung City is a fashion business. Neccis is one of fashion business that located in Bandung City that running business in production of fashion product that implements a system made to order in accept of orders. In the Neccis income statement of 2016 and 2017, discover interesting fact about the disproportional between sales revenue and profit. The discovery is the amount of sales revenue in 2016 is higher than 2017, but profit in 2016 is smaller than 2017. This is because of overly high of expenses that makes 2016 have smaller profit than 2017 while it having higher sales revenue. By using Du Pont analysis, it is known that makes the expenses in 2016 very high is the cost of outsourcing accounts. It is because in 2016, Neccis has many opportunities of order coming in, but Neccis does not have enough capacity to produce all those orders. So, the solution is make partnership with outsourcing to finish all the orders. To improving financial business in the future, Neccis needs to maximize the internal capacity to finish the order, like happen in 2017. However, using the internal capacity only for produce all order have a high risk. The risk is a considerable cash availability to financing the company's operating costs. Thus, the company must have a good cash management plan to do. Cash budgeting is used to make sure the cash availability. This method can help the company to knowing amount of cash needed within 1 year. If the cash that needs by the company are known, the company can respond by looking for funding that can be obtained from debt funding, internal financing or internal financing. By using cash budget to ensure the fulfilment of company cash, the company plan to maximize of using internal production capacity cam be implemented well. Then, the goal to improve the company's finances will automatically achieve. Key words: Sales revenue, profit, disproportionality, outsource, cash budget ii (This page is intentionally left blank) iii MENGEVALUASI TIDAK PROPORSIONALNYA LAPORAN LABA RUGI DAN MENINGKATKAN KINERJA KEUANGAN DI PERUSAHAAN NECCIS Muhammad Bima Luphdika ID No: 19215016 Undergraduate Program School of Business and Management Institut Teknologi Bandung Supervisor: Dr. Sylviana Maya Damayanti, CFP. ® ABSTRAKSI Ekonomi pada suatu negara sangat didukung oleh perkembangan usaha kecil dan menengahnya. Usaha kecil dan menengah yang banyak berkembang di Kota Bandung adalah usaha fashion.Neccis adalah sebuah bisnis produksi pakaian di Kota Bandung yang menerapkan sistem made to order dalam menerima pesanannya. Dalam laporan laba rugi Neccis tahun 2016 dan 2017, ada termuan bahwa terjadi tidak proportionalnya antara sales revenue dan profit. Hal tersebut yaitu jumlah sales revenue pada tahun 2016 lebih tinggi dari 2017, namun profit pada tahun 2016 lebih kecil dari pada 2017. Hal tersebut dikarenakan jumlah expenses yang terlalu tinggi, sehingga membuat profit 2016 lebih kecil dari 2017 walaupun memiliki sales revenue yang lebih tinggi. Dengan menggunakan Du Pont analisis, ditemukan bahwa yang membuat expenses pada 2016 sangat tinggi adalah terlalu besarnya akun biaya outsource. Hal tersebut dikarenakan pada 2016, Neccis memiliki banyak peluang pesanan yang masuk, namun tidak memiliki kapasitas yang cukup untuk memproduksi semua pesanan tersebut. Sehingga, solusi yang dilakukan Neccis adalah bekerja sama dengan outsource lain untuk menyelesaikan pesanan tersebut. Untuk meningkatkan keuangan bisnis untuk masa depan, Neccis perlu memaximalkan kapasitas internal. Produksi perusahaan, seperti yang terjadi pada 2017. Namun, memproduksi pesanan hanya menggunakan kapasitas internal perusahaan memiliki resiko yang tinggi. Resiko tersebut adalah ketersediaan kas yang cukup besar untuk membiayai operating expenses perusahaan. Sehingga, perusahaan harus memiliki rencana pengelolaan kas yang baik untuk bisa melaksanakan rencana tersebut. Cash budgeting dapat digunakan sebagai metode untuk dapat memastikan ketersediaan kas perusaaahn. Metode ini digunakan perusahaan untuk melihat apakah kas yang masuk dan keluar dari perusahaan cukup untuk menjalankan bisnis perusahaan dalam jarak waktu 1 tahun. Setelah diketahui kebutuhan kas perusahan, perusahan dapat mensikapi dengan mencari pembiyaan yang bisa diperoleh dari pembiayaan utang, pembiayaan ekuitas atau pembiyaan internal. Dengan dilakukan cash budgeting untuk memastikan terpenuhinya kas perusahaan, rencana memaximalkan penggunaan kapasitas produksi internal akan dapat terlaksana dengan baik. Sehingga tujuan untuk meningkatkan keuangan perusahaan pun otomatis akan tercapai. Kata kunci: Sales revenue, profit, tidak proporsional, outsource, cash budget iv (This page is intentionally left blank) v APPROVAL PAGE EVALUATING THE DISPROPORTIONAL OF INCOME STATEMENT AND IMPROVING FINANCIAL PERFORMANCE OF NECCIS COMPANY By Muhammad Bima Luphdika 19215016 A Final Project in Partial Fulfillment of the Requirement for the degree of Bachelor of Entrepreneurship Bachelor Program of Entrepreneurship School of Business and Management Institut Teknologi Bandung August 20 th, 2018 Approved By Dr. Sylviana Maya Damayanti, CFP. ® 116110002 vi (This page is intentionally left blank) vii FOREWORD Alhamdulilah Ya Allah, with all of your gifts and your grace, today I can past my three years of studying in SBM ITB. This journey is one of precious moment of my life. The journey that ended with my final project research which give me a lot of experience. I would like to give biggest appreciation to all the lecturers and friends that always support me to be a better person. Greatest thanks to my parents, Alm. Budi Ekanto and Tulus Puji Hastusti that always pray and struggling for me and always make me grateful to have super parent like you. I also wish to say huge thanks for people who supported me throughout the writing of this final project: 1. Mrs. Sylviana Maya Damayanti as my supervisor that always guiding me to finished this final project. I will always remember all your morals and knowledge support. 2. My brother and sister, Muhammad Sena Luphdika, Muhammad Fadlin Luphdika and Zaskia Aisya Dara Luphdika that always become my place to release stress in doing this final project. 3. My partner, Istifati Husna Rekinagara that always become my place to express good or bad feeling these years. You always make me realize that my life is a wonderful journey. 4. My best friend, Dikal, Ramzi and Zed, you accept me for who I really am. Always accompany me to eat together, cook together and also do something meaningful together. Always happy to hang out with you guys. 5. Mr. Dedi, Mr. Nandang and Mrs. Nia, that always cover me when I am busy with this final project. 6. All Rich Gank 2018, you’re all awesome. You’re all bringing beautiful memories and precious relationship. 7. All of the people in the bachelor entrepreneurship and SBM ITB program. I hope my knowledge from SBM ITB and this final project can be beneficial for everyone. Bandung, July, 27 th 2018 Muhammad Bima Luphdika viii (This page is intentionally left blank) ix LIST OF CONTENT ABSTRACT .................................................................................................................. i ABSTRAKSI ............................................................................................................... iii APPROVAL PAGE .................................................................................................... v FOREWORD ............................................................................................................. vii LIST OF CONTENT ................................................................................................. ix LIST OF FIGURES ................................................................................................. xiii LIST OF TABLES .................................................................................................... xv LIST OF APPENDICES ........................................................................................ xvii CHAPTER I ................................................................................................................. 1 1.1 Research Background.............................................................................................. 1 1.2 Company Background ............................................................................................. 4 1.3 Company Profile ..................................................................................................... 4 1.3.1 Company Description ................................................................................... 4 1.3.2 Company Name & Logo ............................................................................... 5 1.3.3 Company Structure & Job Description ......................................................... 6 1.4 Analysis External Business ..................................................................................... 7 1.4.1 Porter's Five Forces Framework ................................................................... 7 1.5 Analysis Internal Business ...................................................................................... 9 1.5.1 Business Model Canvas ................................................................................ 9 1.6 Problem Statement ................................................................................................ 12 1.7 Research Question ................................................................................................. 12 1.8 Research Objective................................................................................................ 12 1.9 Research Scope & Limitation ............................................................................... 12 CHAPTER II ............................................................................................................. 13 2.1 Conceptual Framework ......................................................................................... 13 2.1.1 Financial Statement..................................................................................... 14 2.1.2 Financial Ratios .......................................................................................... 17 2.1.3 DuPont System Analysis ............................................................................