Strategy to Increase Revenue at Shipping Company PT ABC to Get Better Financial Performance Along With The Readiness to Run The Strategy
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Institusion
Sekolah Tinggi Manajemen Ipmi
Author
Agustono, Taufik
Subject
HD28 Management. Industrial Management
Datestamp
2020-01-18 09:08:56
Abstract :
PT ABC has a problem to find financing from investors or to get a better company rating by rating institution. Company DEBT to EBITDA, ROA and ROE should be better than industry (Zacks Investment Research, Inc, 2019). PT ABC has a high DEBT to EBITDA ( 5.17). The requirement from rating company is that the DEBT to EBITDA ratio is max 3-4 to get A-rating. Also the ROA and ROE should be in double digit . However using existing business model run by this Company, even though sustainability of revenue was secured but profit margin was small. To increase revenue and profit year by year it needs additional investment or additional debt. Therefore its DEBT to EBITDA ratio is always stagnant. By utilizing the idle capacity that is still owned by the ship which is in the time charter period and slightly changing the business model pattern, there is a potential increase in revenue and profit even without the addition of assets or debt Keywords: strategy, increase revenue, shipping company, improving financial ratios, shipping business model
PT ABC has a problem to find financing from investors or to get a better company rating by rating institution. Company DEBT to EBITDA, ROA and ROE should be better than industry (Zacks Investment Research, Inc, 2019). PT ABC has a high DEBT to EBITDA ( 5.17). The requirement from rating company is that the DEBT to EBITDA ratio is max 3-4 to get A-rating. Also the ROA and ROE should be in double digit . However using existing business model run by this Company, even though sustainability of revenue was secured but profit margin was small. To increase revenue and profit year by year it needs additional investment or additional debt. Therefore its DEBT to EBITDA ratio is always stagnant. By utilizing the idle capacity that is still owned by the ship which is in the time charter period and slightly changing the business model pattern, there is a potential increase in revenue and profit even without the addition of assets or debt Keywords: strategy, increase revenue, shipping company, improving financial ratios, shipping business model
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