MELISSA RANTE
3B D3
361 10 051
Cash Reinvestment Ratio (CRR)
1.
Financial
Statements Analysis
Process
of reviewing and evaluating a company financial statements (such as the balance
sheet or profit and loss statement), thereby gaining an understanding of the
financial health of the company and enabling more effective decision making.
2.
Kinds
Of Financial Statement Analysis
1.
Securitas Analysis
2.
Cash Flow Analysis
3.
Risk Analysis
4.
Bankruptcy Prediction Analysis
5.
Profitability Analysis. Etc.
3.
Cash
Flow Analysis
Cash flow statement is a report
about the cash inflow and the cash outflow. In analysing the cash flow, there
are 5 financial ratio that can be used, such as :
1. The
ratio of operating cash flow to current liability
2. The
ratio of operating cash flow to total liability
3. The
ratio of operating cash flow to total assets
4. Cash flow adequacy ratio (CFAR)
5. Cash reinvestment ratio (CRR)
4.
Cash Reinvestment Ratio (CRR)
Cash reinvestment ratio (CRR)
is an analytical technique that measures how much of the invesment in assets
that describes the operating cash flow is retained and invested back in the
company to replace the assets and support the growth of company’s operation.
5.
The formula for
calculating
Cash Reinvestment Ratio (CRR)
Cash Reinvestment Ratio (CRR)
6.
Interpretation
Shows
that in 2008 , PT United
Tractors Tbk and a subsidiary reinvest cash
from operations by 17 % to replace assets and support the company’s growth.
Whereas in 2009 this company reinvest cash operations by 16%.
