ANALYSIS OF FINANCIAL PERFORMANCE OF STATE-OWNED STEEL ISSUERS AFTER DEBT RESTRUCTURING: CASE STUDY AT PT. KRAKATAU STEEL (PERSERO), TBK.

Abstract

The purpose of this study is to analyze the impact of debt restructuring on the financial performance of PT. Krakatau Steel (Persero), Tbk. The research approach used is quantitative, using comparative causal methods. The focus of this research is on debt restructuring and corporate financial performance. Financial performance assessment is carried out by analyzing profitability ratios (Return on Assets), liquidity ratios (Current Ratio), and solvency ratios (Debt to Equity Ratio). The data used in this study was collected through purposive sampling techniques, with research samples in the form of an overview of financial statements taken from the annual report of PT. Krakatau Steel. The analysis was conducted in two periods, namely before debt restructuring (2015-2018) and after restructuring (2019-2022). The results of research on financial statements illustrate that the financial condition of PT. Krakatau Steel, before the restructuring (2015-2018) indicated instability and unhealth. The analysis shows a significant influence on the company's solvency ratio after restructuring, while there is no significant influence on the company's profitability and liquidity ratio. Post-restructuring, the company was able to meet its long-term obligations, although it still had difficulties in increasing profits and paying short-term obligations. However, it has not yet reached the desired financial ratio standard through debt restructuring PT. Krakatau Steel managed to avoid the risk of bankruptcy.