The Analysis of Financial Performance of State-Owned Steel Issuers After Debt Restructuring: A Case Study in the Indonesian Steel Industry

Arini Lestari Sugiarti (), Anastasya Alya Nabila, Fitri Hanifah and Aristanti Widyaningsih
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Arini Lestari Sugiarti: Universitas Pendidikan Indonesia
Anastasya Alya Nabila: Universitas Pendidikan Indonesia
Fitri Hanifah: Universitas Pendidikan Indonesia
Aristanti Widyaningsih: Universitas Pendidikan Indonesia

A chapter in Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024), 2025, pp 304-310 from Springer

Abstract: Abstract This study aims 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: before debt restructuring (2015-2018) and after restructuring (2019-2022). The results of research on financial statements illustrate the financial condition of PT. Before the restructuring (2015-2018), Krakatau Steel indicated instability and unhealthy. 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 could meet its long-term obligations, although it still had difficulties 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.

Keywords: Debt Restructuring; Financial Performance; Profitability Ratio; Liquidity Ratio; Solvency Ratio (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-817-2_37

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