Perpustakaan Digital ITB

Indonesian government pursue country’s infrastructure development through National Strategic Projects since 2014. Government also utilized State-Owned Enterprises (SOEs) to handle these projects. This study aims to measure the financial health condition and analyze its correlation with stock price of four SOEs under construction industry for period 2013 to 2017. The Decree No. KEP-100/MBU/2002 issued by Indonesia Ministry of SOEs provides the mandatory of measuring and rating of the SOEs financial health condition. There are eight financial ratios measured in this study, they are; 1) return on equity, 2) return on investment, 3) cash ratio, 4) current ratio, 5) collection period, 6) inventory turnover, 7) total asset turnover, 8) total equity to total asset. The result of measurement then to be validated with the Decree of Ministry of SOEs to conclude annually financial health condition of each SOEs. The result shows that from 2013-2017, all SOEs have achieved financial health condition rating as follows; PT Adhi Karya (A, A, A, BBB, BBB); PT Pembangunan Perumahan (AA, AA, A, A, A); PT Wijaya Karya (A, A, A, A, A); and PT Waskita Karya (A, AA, AA, A, A) respectively. Then, all financial ratios and Weighted Average Cost of Capital (WACC) are analyzed to find their correlation with stock price. Among financial ratios and WACC, inventory turnover and current ratio respectively have the strongest and the weakest correlation with stock price. Further, market judgment toward SOEs is analyzed by measuring P/E ratio of each SOEs. The result shows the rank of SOEs based on P/E ratio performance from the best to worst; PT Wijaya Karya; PT Pembanguna Perumahan; PT Waskita Karya; and PT Adhi Karya respectively. This study gives insight and recommendation for managers in construction industry about financial health and stock price. So that, the managers could be able to increase profit per share.