Abstract

To examine and analyze the influence sources of funding consisting of long-term debt and capital to diversification business and financial performance of Regional Water Company Jayapura Regency. Methods of collecting data used were observation, interviews and secondary data such as financial statements and other documents that have to do with research. Data were analyzed descriptively and quantitatively using the financial ratio analysis, Du Pont analysis and financial ratios specified by Decree 47 of 1999. The results showed that: the effect on the long-term debt diversification Regional Water Company Jayapura regency primarily on the acquisition of Long-Term Debt laba. Dan also affect the financial performance of Regional Water Company redgional Water Company Jayapura regency precisely at the level of solvabilitas, where based on research results Regional Water Company Jayapura Regency has a high level of solvabilitas, high solvabilitas is caused by injection of funds from the government charged as long-term debt. The use of equity capital effect on business diversification and financial performance of the Regional Water Company Jayapura regency. This is evidenced by a decrease in profit resulting from lower equity and the amount of long-term debt. Which due to the lack of balance between long-term debt and equity. And diversification efforts affect the financial performance of the Regional Water Company Jayapura Regency

Highlights

  • The Regional Water Company Jayapura Regency as Regional Owned Enterprises are specially engaged in water management is expected to contribution optimally meet the water needs of society and contribution to local revenues

  • In doing water service to the community confronted over various obstacles related to both financial constraints and rising prices for materials company's operational needs, so that the costs incurred far greater than the revenue generated, Regional water compani Jayapura Regency suffered losses every year for 5 last year

  • The assessment results once used to test the research hypothesis that Regional Water Company Jayapura Regency are healthy or unhealthy, Referring to the guidelines for assessment of financial performance taps, by decision of the interior minister of the Republic of Indonesia Number: 47 of 1999, the financial performance of Jayapura District 2008-2012 can be done by first calculating the value of the company's financial performance indicators, which are presented in Table 1 as follows: Table 1: Calculation of Financial Performance Ratio Regional Water Company Jayapura Regency Year 2008-2012

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Summary

Introduction

The Regional Water Company Jayapura Regency as Regional Owned Enterprises (enterprises) are specially engaged in water management is expected to contribution optimally meet the water needs of society and contribution to local revenues. Regional Water Company Jayapura Regency as manager of the expected role of clean water to meet the needs of cleans water to the community and can contribute to local revenues. With it required to always have a healthy financial performance, to its survival in the future. In doing water service to the community confronted over various obstacles related to both financial constraints and rising prices for materials company's operational needs, so that the costs incurred far greater than the revenue generated, Regional water compani Jayapura Regency suffered losses every year for 5 (five) last year. With the necessary research to find out more on the company in question, by analyzing data on the financial statements of the company, which is derived from the balance sheet and profit and loss

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