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

DOI

10.2991/978-94-6463-817-2_37How to use a DOI?

Keywords

Debt Restructuring; Financial Performance; Profitability Ratio; Liquidity Ratio; Solvency Ratio

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.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Arini Lestari Sugiarti
AU  - Anastasya Alya Nabila
AU  - Fitri Hanifah
AU  - Aristanti Widyaningsih
PY  - 2025
DA  - 2025/09/12
TI  - The Analysis of Financial Performance of State-Owned Steel Issuers After Debt Restructuring: A Case Study in the Indonesian Steel Industry
BT  - Proceedings of the 9th Global Conference on Business, Management and Entrepreneurship (GCBME 2024)
PB  - Atlantis Press
SP  - 304
EP  - 310
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-817-2_37
DO  - 10.2991/978-94-6463-817-2_37
ID  - Sugiarti2025
ER  -