Analysis of Financial Matrix Strategy to Know the Value Creation Growth of Sustainable Companies (Case Studies of Companies Holding Geothermal Concession Areas in ASEAN)

17 Pages Posted: 6 Feb 2018

See all articles by Kiagus Ridwan

Kiagus Ridwan

affiliation not provided to SSRN

Unggul Purwohedi

State University of Jakarta

Ari Warokka

State University of Jakarta

Date Written: January 24, 2018

Abstract

The development of geothermal industry in ASEAN is not yet optimal, so the companies holding geothermal concessions need to pay attention to the value creation conditions that may impact corporate financial management. The concept of value creation and growth management is combined into the financial matrix strategy, which links the ability of the organization to create value through growth and cash management. A financial matrix strategy is a diagnostic tool that can be used to evaluate and navigate through the financial progress of a company. This strategy describes the situation of value creation and growth management in a given period by ranking and placing it in a quadrant in the matrix quadrant.

In this research, involve some variables are Growth in sales, SGR, ROIC, WACC, and the spread EVA. In the financial matrix strategy, after known financial condition, then the companies mapped into the 4 quadrant graph. A financial policy will make recommendations to policymakers such as financing or investment decisions at corporate.

It can be concluded that in the year of research, almost all companies engaged in the field of geothermal energy in the ASEAN region is in a condition of cash deficit. This implies that companies need to increase funding from both internal and external sources and retain earnings. To continuously, whatever the firm plans for financing and investment and should always enter the quadrant of one and the two quadrants in the financial matrix strategy.

Keywords: Geothermal corporate, Growth in sales, SGR, EVA, Value creation

JEL Classification: A23, G23, G32, M21, 016

Suggested Citation

Ridwan, Kiagus and Purwohedi, Unggul and Warokka, Ari, Analysis of Financial Matrix Strategy to Know the Value Creation Growth of Sustainable Companies (Case Studies of Companies Holding Geothermal Concession Areas in ASEAN) (January 24, 2018). Asia Pacific Journal of Management, 2018, Available at SSRN: https://ssrn.com/abstract=3109090

Kiagus Ridwan (Contact Author)

affiliation not provided to SSRN

Unggul Purwohedi

State University of Jakarta

Jalan Rawamangun Muka no 1
Jakarta Timur, ID jakarta 13220
Indonesia

Ari Warokka

State University of Jakarta ( email )

Jalan Rawamangun Muka no 1
Jakarta Timur, ID jakarta 13220
Indonesia

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