Increase in Business Income

Oct 13, 2025 by talynt.org 106 views

Introduction

Every company, regardless of its sector, has the ultimate goal of achieving optimal profits. The success of this goal is heavily dependent on the company's financial conditions and the implementation of its operations in accordance with the set policies. To achieve this goal, company leaders must pay close attention to the position of assets, obligations, capital, and results achieved during a certain period. All this information is summarized in the financial statements, which include the balance sheet, income statement, cash flow statements, statements of changes in equity, and notes to financial statements.

Background of the Study

PDAM Tirtauli Pematang Siantar is a regional company operating under the local government with a focus on profitability, while still considering the social and cultural aspects of the community. At present, the company is facing the challenges of financial stability, as seen from the losses experienced. Therefore, this study aims to analyze the financial condition of PDAM Tirtauli Pematang Siantar by identifying numbers in income, costs, assets, liabilities, and profits listed in the balance sheet and income statement for 2001, 2002, and 2003.

Problem Formulation

The formulation of the problem in this study is: "Is the company's financial condition increasing or decreasing, and which dominant posts affect these changes during the period 2001, 2002, and 2003?"

Methodology

The data analysis method used in this study is descriptive and comparative. By using common size analysis techniques, trend analysis, and ratio, the authors found that the company's financial condition showed an increase. This can be seen from the profits obtained and the increase in the company's liquidity and profitability ratio during the analyzed period.

Data Analysis

The analysis of the financial statements of PDAM Tirtauli Pematang Siantar for the period 2001, 2002, and 2003 revealed the following results:

Increase in Business Income: The company experienced an increase in business income, which contributed to the overall increase in profits.
Decrease in Business Expenses: The company also experienced a decrease in business expenses, which further contributed to the increase in profits.
Increase in Current Assets: The company experienced an increase in current assets, which supported the increase in liquidity and profitability ratio.
Decrease in Current Liabilities: The company also experienced a decrease in current liabilities, which further supported the increase in liquidity and profitability ratio.

Conclusion

In conclusion, the analysis of the financial statements of PDAM Tirtauli Pematang Siantar for the period 2001, 2002, and 2003 revealed that the company's financial condition showed an increase. This can be seen from the profits obtained and the increase in the company's liquidity and profitability ratio during the analyzed period. The dominant posts that affected these changes include an increase in business income, a decrease in business expenses, an increase in current assets, and a decrease in current liabilities.

Recommendations

Based on the analysis, the following recommendations can be made to the management of PDAM Tirtauli Pematang Siantar:

Pay more attention to operational costs: The management should pay more attention to operational costs incurred, so that the profit generated can be more optimal.
Supervise the use of assets and capital: The management should further supervise the use of assets and capital to be more beneficial for the company's operations, so that profits can be further improved.

Implications of the Study

This analysis provides a deeper understanding of the financial condition of PDAM Tirtauli Pematang Siantar and can be a consideration for future strategic decision making. The study also highlights the importance of paying attention to operational costs and supervising the use of assets and capital to achieve optimal profits.

Limitations of the Study

The study has several limitations, including:

Limited data: The study only analyzed the financial statements of PDAM Tirtauli Pematang Siantar for the period 2001, 2002, and 2003.
Limited scope: The study only focused on the financial condition of PDAM Tirtauli Pematang Siantar and did not consider other factors that may affect the company's performance.

Future Research Directions

Future research can build on this study by:

Analyzing the financial statements of other companies: Future research can analyze the financial statements of other companies in the same industry to compare their financial performance.
Considering other factors that affect company performance: Future research can consider other factors that may affect company performance, such as market trends, competition, and government policies.

Conclusion

Frequently Asked Questions

Q: What is the main objective of this study? A: The main objective of this study is to analyze the financial condition of PDAM Tirtauli Pematang Siantar by identifying numbers in income, costs, assets, liabilities, and profits listed in the balance sheet and income statement for 2001, 2002, and 2003.

Q: What is the formulation of the problem in this study? A: The formulation of the problem in this study is: "Is the company's financial condition increasing or decreasing, and which dominant posts affect these changes during the period 2001, 2002, and 2003?"

Q: What is the methodology used in this study? A: The data analysis method used in this study is descriptive and comparative. By using common size analysis techniques, trend analysis, and ratio, the authors found that the company's financial condition showed an increase.

Q: What are the dominant posts that affected the increase in the company's financial condition? A: The dominant posts that affected the increase in the company's financial condition include an increase in business income, a decrease in business expenses, an increase in current assets, and a decrease in current liabilities.

Q: What are the recommendations made to the management of PDAM Tirtauli Pematang Siantar? A: The recommendations made to the management of PDAM Tirtauli Pematang Siantar include paying more attention to operational costs and supervising the use of assets and capital to be more beneficial for the company's operations.

Q: What are the implications of this study? A: This analysis provides a deeper understanding of the financial condition of PDAM Tirtauli Pematang Siantar and can be a consideration for future strategic decision making.

Q: What are the limitations of this study? A: The study has several limitations, including limited data and limited scope.

Q: What are the future research directions? A: Future research can build on this study by analyzing the financial statements of other companies in the same industry to compare their financial performance and considering other factors that may affect company performance.

Q: What is the conclusion of this study? A: In conclusion, the analysis of the financial statements of PDAM Tirtauli Pematang Siantar for the period 2001, 2002, and 2003 revealed that the company's financial condition showed an increase. This can be seen from the profits obtained and the increase in the company's liquidity and profitability ratio during the analyzed period.

Q: What are the key takeaways from this study? A: The key takeaways from this study are:

The company's financial condition showed an increase during the period 2001, 2002, and 2003.
The dominant posts that affected the increase in the company's financial condition include an increase in business income, a decrease in business expenses, an increase in current assets, and a decrease in current liabilities.
The management of PDAM Tirtauli Pematang Siantar should pay more attention to operational costs and supervise the use of assets and capital to be more beneficial for the company's operations.

Q: What are the practical implications of this study? A: The practical implications of this study are:

The management of PDAM Tirtauli Pematang Siantar can use the findings of this study to make informed decisions about the company's operations.
The study can be used as a reference for future research on the financial condition of PDAM Tirtauli Pematang Siantar and other companies in the same industry.

Q: What are the theoretical implications of this study? A: The theoretical implications of this study are:

The study contributes to the existing body of knowledge on financial analysis and decision making.
The study provides a deeper understanding of the financial condition of PDAM Tirtauli Pematang Siantar and can be used as a reference for future research on the financial condition of other companies in the same industry.