Evaluating financial ratios in construction industry : a case study of Indonesian firms
Pamulu, Muhammad Sapri, Kajewski, Stephen L., & Betts, Martin (2007) Evaluating financial ratios in construction industry : a case study of Indonesian firms. In Dewobroto, Wiryanto, Hardjasaputra, Harianto, Adventus, Manlian R., Widjajakusuma, Jack, & Sitohang, Fransiscus Mintar (Eds.) 1st International Conference of European Asian Civil Engineering Forum (EACEF), 26 - 27 September 2007, Jakarta, Indonesia.
This paper presents findings of a pilot study, which evaluates financial ratios in the Indonesian construction Industry. The study is an extension of a larger study that is an attempt to identify the areas of strategic issues for Indonesian construction firms and develop an appropriate strategic management process for the firms to formulate, implement and evaluate. The findings are based on financial reports taken from all of construction companies listed in Surabaya Stock Exchange (SSX). The SSX has classified 6 firms in the construction sector. It has included both private and state owned firms. The research methodology adopted for this study includes data collection and analysis of firm annual reports and financial statements. There are some methods and techniques of financial ratio analysis in evaluating corporate performance of construction firms. Modified traditional ratios such as Liquidity, Leverage, Activity and Profitability ratios are adapted from Construction Financial Management Association (CFMA) to support different purposes of analysis. When evaluating ratios, the results are compared with other firms in the same sector of industry. The analysis reveals that the Indonesian firms in this study are financially sound, where profits and returns generated from construction works are still satisfactory. However, this performance can still be sustained if they are able to manage their maximum pace at which a company can grow revenue without depleting its financial resources.
Impact and interest:
Citation counts are sourced monthly from and citation databases.
These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.
Citations counts from theindexing service can be viewed at the linked Google Scholar™ search.
Full-text downloads displays the total number of times this work’s files (e.g., a PDF) have been downloaded from QUT ePrints as well as the number of downloads in the previous 365 days. The count includes downloads for all files if a work has more than one.
|Item Type:||Conference Paper|
|Subjects:||Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BANKING FINANCE AND INVESTMENT (150200) > Banking Finance and Investment not elsewhere classified (150299)
Australian and New Zealand Standard Research Classification > ENGINEERING (090000) > CIVIL ENGINEERING (090500) > Civil Engineering not elsewhere classified (090599)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Business and Management not elsewhere classified (150399)
|Divisions:||Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering|
|Copyright Owner:||Copyright 2007 (please consult author)|
|Deposited On:||13 Feb 2008|
|Last Modified:||03 Mar 2011 05:44|
Repository Staff Only: item control page