Strategies for Increasing Profitability and Sustainability of The Leather Tanner Industry with without Interesting Capital Structure
Abstract
The bankruptcy of the leather tanning industry in Sukaregang Garut was mostly caused by a decrease in profitability due to an increase in the capital structure with an increase in external loans with an interest system. The purpose of this research is to determine the strategy for increasing the profitability and sustainability of the leather tanning industry with an interest-free capital structure. The data collection method was carried out by interviewing leather tanning industry players. The data obtained were analyzed using profitability ratio analysis, EEI and Altman Z-Score to determine the level of business continuity. There are three strategies for increasing the profitability and sustainability of the tanner industry, namely the strategy of interest-free loans, partnerships and strategies for increasing price and quality. From the analysis of the profitability ratio of the partnership strategy is the chosen strategy, the results of calculating the COGS per ft2 show that the partnership strategy is a strategy that has a fixed COGS value. Based on the results of the EEI analysis, all strategies for increasing the profitability and sustainability of the tannery industry are in the range of 0-1, meaning that the leather industry is Affordable but not sustainable, but the highest and most stable EEI value of all these strategies is the partnership strategy. The results of the sustainability analysis using the Altman Z-Score method show that the partnership strategy is the strategy that has the most high business sustainability value with a healthy status.
References
Akmalia, A. 2020. Pengaruh Struktur Modal, Struktur Aset Dan Profitabilitas Terhadap Potensi Terjadinya Financial Distress Perusahaan. Business Management Analysis Journal (BMAJ). Vol. 3 No. 1. 1-21.
Batubara, H. 2013. Penentuan Harga Pokok Produksi Berdasarkan Metode Full Costing Pada Pembuatan Etalase Kaca Dan Alumunium Di Ud. Istana Alumunium Manado. Jurnal EMBA. Vol 1 No. 3. 217-224.
Botchkarev, A., & Andru, P. (2011). A return on investment as a metric for evaluating information systems: Taxonomy and application. Interdisciplinary Journal of Information, Knowledge, and Management, 6(January 2011), 245–269. https://doi.org/10.28945/1535
Ciptawan, C., & Frandjaja, B. O. (2022). The Impact Of Current Ratio And Gross Profit Margin Towards Financial Distress In Technology Sector Companies Listed In Indonesia Stock Exchange For Period 2016-2020. Journal of Industrial Engineering & Management Research, 3(1), 197–214. https://jiemar.org/index.php/jiemar/article/view/293
Eriawati Y. 2018. Pengaruh bunga dalam keterpurukan ekonomi. At-tasyri’iy. 1(2): 21-28
Hur T, Song TL dan Hye JE. 2003. A Study on The Ecoefficiencies for Recycling Methods of Plastics Waste. Jurnal Dept of Material Chemistry & Enggineering Konkuk University.
Istanti, E. (2002). The Influence of Internal and External Factors on Entry Modes. International Journal of Economics, Business and Accounting Research, 6(3), 1–14.
Janice, J., & Toni, N. (2020). The Effect of Net Profit Margin, Debt to Equity Ratio, and Return on Equity against Company Value in Food and Beverage Manufacturing Sub-sector Companies listed on the Indonesia Stock Exchange. Budapest International Research and Critics Institute (BIRCI-Journal) : Humanities and Social Sciences, 3(1), 494–510. https://doi.org/10.33258/birci.v3i1.799
Kurniawan A, Sukardi, Indrasti NS, Suparno O. 2020. Profitability analysis of leather tanning industry with capital structure without interest using canvas financial management approach. IOP Conf. Series: Earth and Environmental Science 472 (2020) 012061.
Mahdi, M., & Khaddafi, M. (2020). The Influence of Gross Profit Margin, Operating Profit Margin and Net Profit Margin on the Stock Price of Consumer Good Industry in the Indonesia Stock Exchange on 2012-2014. International Journal of Business, Economics, and Social Development, 1(3), 153–163. https://doi.org/10.46336/ijbesd.v1i3.53
Mulyadi, D., Sihabudin, & Sinaga, O. (2020). Analysis of current ratio, net profit margin, and good corporate governance against company value. Systematic Reviews in Pharmacy, 11(1), 588–600. https://doi.org/10.5530/srp.2020.1.74
Nindiani, F., & Arilyn, E. J. (2019). Factors In Capital Structure And Its Influence On Total Debt Ratio Of Automotive Industry. Jurnal Bisnis Dan Akuntans, 21(1), 203–210.
Nisa, F., Haji, A.T.S., Suharto, B., Widyotomo, S. 2017. Penentuan Tingkat Eko-efisiensi Proses Produksi Biji Kakao Menggunakan Life Cycle Assessment Pada Unit Produksi di Pusat Penelitian Kopi dan Kakao Indonesia. Jurnal Sumberdaya Alam dan Lingkungan.
Purwanti E, Wibowo MA. 2018. Analisis rasio keuangan untuk memprediksi kebangkrutan perusahaan rokok. Among makarti Vol.11 (21); 1-16
Puspita, B., Wiwiek, S., & Daryanto, M. (2021). Profitability Ratio Analysis As Measurement Tool of Financial Performance Study Case of Pt Pertamina (Persero). International Journal of Business, Economics and Law, 24(2), 82–87.
Raflis, R. Dan Arita, E. 2021. Impak Struktur Modal, Struktur Kepemilikan dan Karakteristik Perusahaan Terhadap Financial Distress dan Financial Health Perusahaan. Jurnal Ekonomi dan Bisnis Dharma Andalas Volume 23 No 1 : 135 – 150.
Rialdy, N. 2018. Analisis Prediksi Kebangkrutan dengan Menggunakan Metode Altman Z-Score pad PT. Adhi Karya (Persero) Tbk. Jurnal Keuangan dan Bisnis. Vol. 9 No. 1. 79 – 96.
Rosyaida S. Dan Arifin J. 2021. Pengaruh Profitabilitas (Return On Equity Dan Return On Investment) Terhadap Nilai Perusahaan Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2017-2019. JAPB : Volume 4 Nomor 1. 529-541.
Rutkowska-Ziarko, A. (2015). The Influence of Profitability Ratios and Company Size on Profitability and Investment Risk in the Capital Market. Folia Oeconomica Stetinensia, 15(1), 151–161. https://doi.org/10.1515/foli-2015-0025
Sawiya R. Dan Munandar A. 2017. Analisis Altman Z-Score untuk Memprediksi Kebangkrutan pada Perusahaan Farmasi di Indonesia (Periode tahun 2008 sampe 2015). Sekolah Tinggi Ilmu Ekonomi Ahmad Dahlan. Tangerang - Banten
Sunarjanto NK, Roida AY, Widyaningdyah NU. 2016. Analisis ratio keuangan untuk memprediksi kegagalan bisnis usaha kecil, dan menengah. Jurnal Bisnis dan Ekonomi (JBE). 23 (2) : 152 – 162.
Sudaryo, Y. Dan Pratiwi, I.Y. 2016. Pengaruh Struktur Modal Dan Likuiditas Terhadap Profitabilitas Dan Dampaknya Terhadap Kinerja Keuangan. Jurnal Indonesia Membangun. Vol. 15,No. 2. 1- 20.
Thusini, S. ’thembile, Milenova, M., Nahabedian, N., Grey, B., Soukup, T., Chua, K. C., & Henderson, C. (2022). The development of the concept of return-on-investment from large-scale quality improvement programmes in healthcare: an integrative systematic literature review. BMC Health Services Research, 22(1), 1–18. https://doi.org/10.1186/s12913-022-08832-3
Utami, W. B. (2017). Analysis of Current Ratio Changes Effect, Asset Ratio Debt, Total Asset Turnover, Return On Asset, And Price Earning Ratio In Predictinggrowth Income By Considering Corporate Size In The Company Joined In LQ45 Index Year 2013 -2016. International Journal of Economics, Business and Accounting Research (IJEBAR), 1(01). https://doi.org/10.29040/ijebar.v1i01.253
Windrianto Y, Rachmawati D dan Berlianty I. 2016. Pengukuran Tingkat Eko-efisiensi Menggunakan Metode Life Cycle Assessment (LCA) untuk Menciptakan Produksi Batik yang Efisien dan Ramah Lingkungan. Jurnal OPSI . 9(2); 143-149
Batubara, H. 2013. Penentuan Harga Pokok Produksi Berdasarkan Metode Full Costing Pada Pembuatan Etalase Kaca Dan Alumunium Di Ud. Istana Alumunium Manado. Jurnal EMBA. Vol 1 No. 3. 217-224.
Botchkarev, A., & Andru, P. (2011). A return on investment as a metric for evaluating information systems: Taxonomy and application. Interdisciplinary Journal of Information, Knowledge, and Management, 6(January 2011), 245–269. https://doi.org/10.28945/1535
Ciptawan, C., & Frandjaja, B. O. (2022). The Impact Of Current Ratio And Gross Profit Margin Towards Financial Distress In Technology Sector Companies Listed In Indonesia Stock Exchange For Period 2016-2020. Journal of Industrial Engineering & Management Research, 3(1), 197–214. https://jiemar.org/index.php/jiemar/article/view/293
Eriawati Y. 2018. Pengaruh bunga dalam keterpurukan ekonomi. At-tasyri’iy. 1(2): 21-28
Hur T, Song TL dan Hye JE. 2003. A Study on The Ecoefficiencies for Recycling Methods of Plastics Waste. Jurnal Dept of Material Chemistry & Enggineering Konkuk University.
Istanti, E. (2002). The Influence of Internal and External Factors on Entry Modes. International Journal of Economics, Business and Accounting Research, 6(3), 1–14.
Janice, J., & Toni, N. (2020). The Effect of Net Profit Margin, Debt to Equity Ratio, and Return on Equity against Company Value in Food and Beverage Manufacturing Sub-sector Companies listed on the Indonesia Stock Exchange. Budapest International Research and Critics Institute (BIRCI-Journal) : Humanities and Social Sciences, 3(1), 494–510. https://doi.org/10.33258/birci.v3i1.799
Kurniawan A, Sukardi, Indrasti NS, Suparno O. 2020. Profitability analysis of leather tanning industry with capital structure without interest using canvas financial management approach. IOP Conf. Series: Earth and Environmental Science 472 (2020) 012061.
Mahdi, M., & Khaddafi, M. (2020). The Influence of Gross Profit Margin, Operating Profit Margin and Net Profit Margin on the Stock Price of Consumer Good Industry in the Indonesia Stock Exchange on 2012-2014. International Journal of Business, Economics, and Social Development, 1(3), 153–163. https://doi.org/10.46336/ijbesd.v1i3.53
Mulyadi, D., Sihabudin, & Sinaga, O. (2020). Analysis of current ratio, net profit margin, and good corporate governance against company value. Systematic Reviews in Pharmacy, 11(1), 588–600. https://doi.org/10.5530/srp.2020.1.74
Nindiani, F., & Arilyn, E. J. (2019). Factors In Capital Structure And Its Influence On Total Debt Ratio Of Automotive Industry. Jurnal Bisnis Dan Akuntans, 21(1), 203–210.
Nisa, F., Haji, A.T.S., Suharto, B., Widyotomo, S. 2017. Penentuan Tingkat Eko-efisiensi Proses Produksi Biji Kakao Menggunakan Life Cycle Assessment Pada Unit Produksi di Pusat Penelitian Kopi dan Kakao Indonesia. Jurnal Sumberdaya Alam dan Lingkungan.
Purwanti E, Wibowo MA. 2018. Analisis rasio keuangan untuk memprediksi kebangkrutan perusahaan rokok. Among makarti Vol.11 (21); 1-16
Puspita, B., Wiwiek, S., & Daryanto, M. (2021). Profitability Ratio Analysis As Measurement Tool of Financial Performance Study Case of Pt Pertamina (Persero). International Journal of Business, Economics and Law, 24(2), 82–87.
Raflis, R. Dan Arita, E. 2021. Impak Struktur Modal, Struktur Kepemilikan dan Karakteristik Perusahaan Terhadap Financial Distress dan Financial Health Perusahaan. Jurnal Ekonomi dan Bisnis Dharma Andalas Volume 23 No 1 : 135 – 150.
Rialdy, N. 2018. Analisis Prediksi Kebangkrutan dengan Menggunakan Metode Altman Z-Score pad PT. Adhi Karya (Persero) Tbk. Jurnal Keuangan dan Bisnis. Vol. 9 No. 1. 79 – 96.
Rosyaida S. Dan Arifin J. 2021. Pengaruh Profitabilitas (Return On Equity Dan Return On Investment) Terhadap Nilai Perusahaan Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia Tahun 2017-2019. JAPB : Volume 4 Nomor 1. 529-541.
Rutkowska-Ziarko, A. (2015). The Influence of Profitability Ratios and Company Size on Profitability and Investment Risk in the Capital Market. Folia Oeconomica Stetinensia, 15(1), 151–161. https://doi.org/10.1515/foli-2015-0025
Sawiya R. Dan Munandar A. 2017. Analisis Altman Z-Score untuk Memprediksi Kebangkrutan pada Perusahaan Farmasi di Indonesia (Periode tahun 2008 sampe 2015). Sekolah Tinggi Ilmu Ekonomi Ahmad Dahlan. Tangerang - Banten
Sunarjanto NK, Roida AY, Widyaningdyah NU. 2016. Analisis ratio keuangan untuk memprediksi kegagalan bisnis usaha kecil, dan menengah. Jurnal Bisnis dan Ekonomi (JBE). 23 (2) : 152 – 162.
Sudaryo, Y. Dan Pratiwi, I.Y. 2016. Pengaruh Struktur Modal Dan Likuiditas Terhadap Profitabilitas Dan Dampaknya Terhadap Kinerja Keuangan. Jurnal Indonesia Membangun. Vol. 15,No. 2. 1- 20.
Thusini, S. ’thembile, Milenova, M., Nahabedian, N., Grey, B., Soukup, T., Chua, K. C., & Henderson, C. (2022). The development of the concept of return-on-investment from large-scale quality improvement programmes in healthcare: an integrative systematic literature review. BMC Health Services Research, 22(1), 1–18. https://doi.org/10.1186/s12913-022-08832-3
Utami, W. B. (2017). Analysis of Current Ratio Changes Effect, Asset Ratio Debt, Total Asset Turnover, Return On Asset, And Price Earning Ratio In Predictinggrowth Income By Considering Corporate Size In The Company Joined In LQ45 Index Year 2013 -2016. International Journal of Economics, Business and Accounting Research (IJEBAR), 1(01). https://doi.org/10.29040/ijebar.v1i01.253
Windrianto Y, Rachmawati D dan Berlianty I. 2016. Pengukuran Tingkat Eko-efisiensi Menggunakan Metode Life Cycle Assessment (LCA) untuk Menciptakan Produksi Batik yang Efisien dan Ramah Lingkungan. Jurnal OPSI . 9(2); 143-149
Published
2023-05-16
How to Cite
KURNIAWAN, Aceng.
Strategies for Increasing Profitability and Sustainability of The Leather Tanner Industry with without Interesting Capital Structure.
Indonesian Journal of Food Technology, [S.l.], v. 2, n. 1, p. 1-15, may 2023.
ISSN 2962-6641.
Available at: <https://jos.unsoed.ac.id/index.php/ijft/article/view/7334>. Date accessed: 03 apr. 2025.
doi: https://doi.org/10.20884/1.ijft.2023.2.1.7334.
Section
Articles
