Gross Profit Margin Analysis Of PT Ultra Jaya

MM5002 Accounting (YP 57 C)

Group 1
ASTRI YUANITA HERRY PUTRI 29117014
AZMI SAID AL GHIFFARI 29117217
DEVY ANNISA ARISANDY 29117146
FAJAR WAHYUDI 29117186
FITRIYANTI 29117052
IAN DANARKO 29117125

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2017
 Cost Of Good Sold PT Ultra Jaya

Cost of Goods Sold consists of costs of production of sold finished goods. The costs
charged to the production process are: the cost of raw material, direct labor costs and
overhead costs which include, among others, the costs associated with depreciation of
fixed assets and rented assets, electricity and energy cost, maintenance and repairs cost,
usage of spare parts and supplies, salaries and wages cost, etc.

According to the vertical analysis, which is the ratio of Cost of Goods Sold to Total
Net Sales in each financial year, the Cost of Goods Sold in 2016 showed a decrease
compared with 2015, from 68.5% in 2015 to 65.2% in 2016. The decrement of Cost of
Goods Sold is mainly caused by a decrease in Cost of Direct Material Consumption from
58.5% in 2015 to 53.8% in 2016, Factory Overhead Cost increased from 11.1% in 2015
to 11.2% in 2016,while Direct Salary remained the same, that is 0.7% both in to 2015 and
2016.
 Direct Labor, Direct Material Cost, And Overhead

This is the details of cost of good sold for the year ended 31 December 2016 and
2015 are as follows:
 Gross Profit & Net Profit Margin Ratio Analysis

Operating Ratios %
Gross Profit To Net Sales 34.85
Net Income To Net Sales 15.15

a. Gross Profit Margin (Margin laba kotor)

The gross profit margin ratio is an indicator of the company’s financial health.
It tells investors how much gross profit every rupiah of revenue a company is
earning. Compare with industry average, lower margin could indicate a company
is under-pricing. A higher gross profit margin indicates that a company can make
a reasonable profit on sales, as long as it keeps over head costs in control.
Investors tend to pay more for a company with higher gross profit.
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 = 𝑥100%
𝑛𝑒𝑡 𝑠𝑎𝑙𝑒𝑠
This mean for every rupiahs generated in sales, the company has 34.85 rupiah
left over to cover basic operating costs and profit.

b. Net Profit margin (margin laba bersih)

Net margin measures how successful a company has been at the bisnis of
marking a profit on each rupiah sales. It is one of the most essential financial
ratios. Net margin includes all the factors that influences profitability whether
under management control or not. The higher the ratio, the more effective a
company is at cost control. Compared with industry average, it tells investors how
well the management and operations of a company are performing against its
competitor. Compared with different industries, it tells investor which industries
are relatively more profitable than others.

𝑛𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 = 𝑥100%
𝑛𝑒𝑡 𝑠𝑎𝑙𝑒𝑠
This mean that a company has Rp 0.15,- of net income for every rupiah of sales.
PT Ultra Jaya has Rp 4.686.000.000.000,- worth of sales yet his net income is
only Rp 699.895.000.000,-. By decreasing costs PT Ultra Jaya can increase net
income.