Financial Ratio Analysis Research Articles

Financial Performance Analysis Using Financial Ratios At PT Diamond Food Indonesia Tbk

The purpose of this research is to analyse the financial performance of PT Diamond Food Indonesia Tbk during the period from 2020 to 2022 using financial ratio analysis, including liquidity, solvency, profitability, and activity ratios. The method employed in this research is quantitative descriptive method with data collection conducted through documentation and literature study. The data analysed are derived from secondary data sources, namely the annual financial reports for the period 2020 to 2022 obtained from the official website of the Indonesia stock Exchange. The research findings indicate that the financial performance of PT Diamond Food Indonesia Tbk. is considered “Very Good” based on liquidity and solvency ratios. However, the company’s financial performance is deemed “Less Favourable” based on profitability and activity ratios.

Analysis of Regency and City Government Financial Reports in Provinsi Nusa Tenggara Barat

This research aims to analyze the financial condition of district and city governments in West Nusa Tenggara Province for the 2017-2021 period using analysis of financial flexibility ratios, financial independence ratios, and solvency ratios. The type of research used is descriptive quantitative. The research results show that for the group of district and city governments in West Nusa Tenggara Province in the 2017-2021 period that showed the best conditions in the short-term financial solvency dimension was the Bima City Government; the dimension of long-term financial solvency is the Bima Regency Government; the budget solvency dimension is the North Lombok Regency Government; the operational solvency dimension is the North Lombok Regency Government; the dimension of financial independence is the Mataram City Government; the financial flexibility dimension is the West Sumbawa Regency Government; the dimension of service solvency is the West Sumbawa Regency Government.

Analysis of Village Fund Financial Ratios in Implementing Development Programs in Mata Allo Village, Bontomarannu District, Gowa Regency

This research aims to find out how the financial ratio of village funds is in implementing development programs in Mata Allo village, Bontomarannu sub-district, Gowa district. This research uses descriptive quantitative analysis. By focusing on financial ratios of funds in implementing development programs. The types and sources of data used are primary data and secondary data obtained from observation, documentation and financial reports. The results of this research show that the activity ratio of Mata Allo Village has decreased every year from the 2021 to 2023 fiscal year. Because the activity ratio prioritizes larger village funds in routine operational expenditure, this results in a reduction in the share of capital expenditure so that funds from routine operational expenditure will be earmarked for providing facilities and infrastructure for the local community as village investment. The effectiveness ratio of Mata Allo Village can be categorized using effective criteria. This is shown by the average realization of revenue for 2021-2023 of 99.97%, which means that almost 100% of the targets to be achieved will be achieved. The efficiency ratio of the Mata Allo Village government is categorized as inefficient because the average amount obtained each year is 100 .13% of the achievements obtained indicate that the performance of the village government in managing PAD is inefficient as indicated by the results of the ratio calculation being above 100%. Allo Village Funds can be seen from the financial ratio of village funds which decreases every year.

WAYS OF STRENGTHENING THE FINANCIAL STABILITY OF SMALL ENTERPRISES IN AZERBAIJAN

Topicality. In recent years, mechanisms to support and encourage small businesses have been widely used to promote the positive impact of income distribution on the development of a competitive economy, poverty reduction and rapid response to changing market conditions. Aim and tasks. The primary aim of this research is to investigate and enhance the financial stability of small enterprises in Azerbaijan, emphasizing their crucial role in the country's economic development. The research evaluates the profitability and management efficiency of small enterprises through indicators such as general profitability, net profitability, net return on equity, and total profitability of production funds. Materials and methods. Data Collection, literature review, mathematical analysis methods were used in the study. There are methods of financial planning aimed at studying its object, and the preparation of this financial plan is carried out by various methods. Among them, we can show methods on the coefficient, methods on the norm, and also methods on the balance. As a result of determining financial ratios, financial risks can be analyzed and eliminated. To achieve stability, it is necessary to analyze financial ratios, which are relative indicators of the financial condition of the enterprise. These coefficients are calculated as the ratio of absolute indicators or their complex. The analysis of financial ratios is carried out by comparing their values for periods (report and base). Research results. While each enterprise demonstrates its unique financial performance, "Karmen LLC" appears to exhibit promising signs of stability with positive profitability, reasonable liquidity, and efficient management. However, continuous monitoring and strategic planning are necessary for sustaining and enhancing their financial health and market stability. Conclusion. The financial analysis of "Karmen LLC", "Azdad 2020 LLC", "Karvan L LLC", and "NEON LLC" highlights variations in their financial stability, profitability, and management efficiency. While "Karmen LLC" and "Azdad 2020 LLC" demonstrate stronger financial positions and profitability, "Karvan L LLC" and "NEON LLC" face challenges such as lower liquidity and profitability. Further research should focus on industry benchmarking, trend analysis, and qualitative assessments to provide a more comprehensive understanding of their financial performance and prospects. These insights will be crucial for informed decision-making and strategic planning in the competitive business landscape.

Kinerja Keuangan PT Industri Jamu dan Farmasi Sido Muncul,TBK Periode 2017-2021

The purpose of this research is to describe and analyze the financial performance of PT Industri Jamu dan Farmasi Sido Muncul,Tbk for the period 2017-2021. The research method used is quantiative descriptive, using financial ratio analysis and trend analysis. The research data used is financial reports. The results of reseacrh on financial ratio analysis show the financial performance of PT Industri Jamu dan Farmasi Sido Muncul,Tbk for the 2017-2021 periode as a whole is in goos condition except for the receivable turnover ratio which has experienced an increase which shows that the company is not good at managing it’s receivable. The results of the trend analysis show that the financial performance of PT Industri Jamu dan Farmasi Sido Muncul,Tbk for the period 2017-2021 tends to decrease in terms of current ratio, cash ratio, dan receivables turnover.The debt to asset ratio and debt to equity ratio are experiencing an increasing trend, this condition is not good because the company debt burden is increasing every year. Total asset turnover, net profit margin, and return on investment tend to increase, indicating better managemen of total assets. So that company gets better profits every year. Keywords: Finacial Performance, Liquidity, Activity, Solvency, Profitability

Peran Analisis Laporan Keuangan Dalam Proses Evaluasi Permohonan Kredit: Tinjauan Kasus Di Pt. Bank Rakyat Indonesia (PERSERO) TBK.

The most important aspect above when evaluating the performance of a company is its satisfactory financial position. For this reason, companies must manage their financial management carefully and manage it well. Financial ratio analysis is used to analyze financial performance. When analyzing company performance from a financial perspective, ratio analysis is a tool for analyzing financial data contained in financial reports. The analytical method used in this research is a quantitative method which aims to obtain information about various field conditions and interpret them based on interrelated theory and literature. The analytical tools used to analyze customer financial reports include liquidity ratios, solvency ratios and profitability ratios. Based on research results obtained from PT. Bank Rakyat Indonesia (Persero) Tbk., the author concludes that there is a very effective financial report analysis to find out whether banks carry out credit assessments of prospective debtors by using ratio analysis to manage liquidity, profitability and profitability. The financial ratios calculated include the current ratio, quick ratio, debt to equity ratio, debt to equity ratio, profit margin, investment returns and return on equity. Improve and improve the quality of creditor financial report analysis in evaluating credit applications, as a basis for considering and completing further financial ratio analysis.

Analisis Rasio Likuiditas Pada Laporan Keuangan PT. Bank Negara Indonesia (Persero) Tbk Tahun 2019-2023

Bank Negara Indonesia (BNI) is one of the largest banks in Indonesia, which if you look at it has experienced significant development, especially in terms of assets and income, which are benchmarks for its financial performance. Financial ratio analysis, especially liquidity ratios, is an important part of measuring a bank's ability to pay short-term obligations. Liquidity ratios, such as Current Ratio, Cash Ratio, Loan to Deposit Ratio, and Loan to Asset Ratio, provide an overview of the bank's financial health. Through quantitative methods and research literature, we want to know how much Bank Negara Indonesia's liquidity ratio has developed from 2019 to 2023. From the analysis of this ratio, it can be concluded that Bank Negara Indonesia has quite good liquidity during the 2019 to 2013 period, which directly means that Bank Negara Indonesia has a good ability to pay its short-term obligations.

ANALISIS RASIO BIAYA DANA DALAM KINERJA KEUANGAN BANK : PENDEKATAN STUDI KASUS INDUSTRI PERBANKAN DI INDONESIA

The cost of funds ratio is a matrix used to carry out analysis in financial reports to evaluate banking financial performance by connecting various factors that influence the cost of funds ratio. Financial ratio analysis is part of business analysis that assesses a company's prospects and risks. Cost of funds ratio analysis describes the relationship between the amount of money and the company's burden in managing these finances to increase profitability. Cost of funds ratio analysis method. Research was conducted to identify information related to cost of funds ratio analysis in banking. The research results show the significant impact of financial ratio analysis on the financial performance of banking companies in Indonesia. Suggestions include increasing LDR, reducing NPL, controlling operational costs, and improving customer service. It is also recommended that the banking industry be able to reduce the cost of funds ratio regularly to improve its financial performance.

Analisa Laporan Keuangan Nasabah dan Peranannya dalam Pemberian Kredit pada PT Bank Rakyat Indonesia (Persero) Tbk Unit Lubuk Begalung Padang

Financial reports have a dual role as a guide for customers in preparing financial reports and as a source of inspiration for BRI's credit department. Analysis of customer financial reports, supported by financial reports, becomes an integral part of the credit process. Research involves credit monitoring procedures and analysis of customer financial reports. Case studies on Toko Rhio Yudha Gama and Toko Dikcy Oksani Junaidi show positive results in liquidity, solvency and profitability, validating their suitability for obtaining credit with low risk. Analysis of financial ratios, such as current ratio, quick ratio, debt to total asset ratio, and return on equity, provide a satisfactory performance picture. The research conclusion confirms that credit assessment based on analysis of financial statements and profit and loss has great significance. Financial ratios are the main indicator, reflecting whether a customer is worthy of receiving a loan. In addition, BRI Bank determines the loan nominal using Repayment Capacity, which is the customer's repayment capacity of 50% of the net profit in the profit and loss statement.

Competitive Strategy Redesign Indonesian Film Industry (Case Study of Perum Produksi Film Negara)

The aim of this research is to analyze the competitive strategy of the Indonesian film industry by testing samples at the State Film Production Company (PFN) as the only state-owned company operating in the film industry. In analyzing the competitive strategy, an analysis was carried out using financial ratio analysis by looking at the financial performance of the State Film Production Company (PFN) for the period 2015 – 2021. Then an assessment was carried out using the Corporate Life Cycle approach to determine the company’s positioning amidst the development of the film industry both at the national and international levels. The type of research used is descriptive with the data source used is secondary data. Secondary data in this research is the Financial Report of Perum PFN for the period 2015 – 2021. The financial ratios used as analytical tools are liquidity ratios, leverage ratios, profitability ratios, activity ratios and market value ratios. Overall research results referring to the company’s financial ratios show that positioning PFN in the Infant category, there is a high probability that the business will die due to lack of sales with negative cash flow conditions. So, in order to be able to compete in the national film industry, it is necessary to redesign appropriate and efficient competitive strategies.

ANALISIS HORIZONTAL TERHADAP KINERJA KEUANGAN PT.DELTA DJAKARTA TBK. PERIODE 2022 – 2023 TRIWULAN II

This article aims to conduct a financial ratio analysis at PT. Delta Jakarta Tbk., a company listed on the Indonesia Stock Exchange, during the second quarter of 2022-2023. Financial ratio analysis is an important approach in evaluating a company's financial performance, providing a comprehensive picture of the sustainability and operational efficiency of the company. This research methodology involves collecting financial data from the quarterly financial statements of PT. Delta Jakarta Tbk. during the period 2022-2023. The financial ratios analyzed include liquidity ratios, profitability ratios, solvency ratios, and activity ratios. This data is then analyzed to identify trends, strengths, and potential risks that might affect a company's financial performance. The results of this analysis are expected to provide in-depth insight into the financial condition of PT. Delta Jakarta Tbk. as well as providing a better outlook to stakeholders, including investors, financial analysts and company management. This article can also be an important reference for financial researchers and practitioners who are interested in understanding the financial performance of companies in the Indonesian capital market.

FINANCIAL RATIO ANALYSIS OF PT WIJAYA KARYA (PERSERO) TBK. DURING THE COVID-19 PANDEMIC (2020-2022) TO DETERMINE THE IMPACT OF THE PANDEMIC ON THE COMPANY'S FINANCIAL PERFORMANCE

A significant decrease in profit was experienced by PT Wijaya Karya (Persero) Tbk during the Covid-19 pandemic in Indonesia, which decreased by 33.48% in 2021 and decreased by 94.13% in 2022. However, company performance cannot be measured by profit levels alone. Descriptive analysis using financial ratios such as liquidity ratios, solvency ratios, activity ratios, and profitability ratios is the basis of this research. It is concluded that the company's performance during the pandemic is not good, if the resulting financial ratio analysis is compared to the industry average standard. Average current ratio is still far below industry standards, which is 106% compared to 200%. Average quick ratio is still far below the industry standard, which is 78% compared to 150%. Average cash ratio is still far below industry standards, which is 23% compared to 50%. Average debt to equity ratio shows a value far above the industry standard, which is 312% compared to 90%, even exceeding the maximum debt to equity ratio limit of 200%. Average debt to asset ratio shows a value far above the industry standard, which is 76% compared to 35%. Average total asset turnover is still far below the industry standard, which is 0.26 times compared to 2 times. Average fixed asset turnover is still far below the industry standard, which is 2.60 times compared to 5 times. Average NPM is still far below the industry standard, which is 1.07% compared to 20%. Average ROE is far below the industry standard, at 1.08% compared to 40%.

Financial Performance Evaluation of A Bankrupt Bank: The Case of Silicon Valley Bank

The aim of this research paper is to evaluate and compare the financial performance of Silicon Valley Bank spanning the two-year period prior to its eventual bankruptcy in March 2023, using financial data derived from the former bank’s annual reports. Comparative financial ratio analysis was conducted pertaining to four groups of financial indicators, profitability, capital structure, liquidity and market performance. The results of this analysis reveal a decline in performance in 2022 in comparison with the 2021 business year. The decline coincided with the public emergence of formidable business and market risks for the bank. This study fills a critical gap in the literature by assessing the connection between firm performance and both accounting & market indicators during a time of heightened financial distress, whereas previous studies tended to take a closer look at the relationship between firm performance and one specific class on financial indicator while neglecting the other, equally important class of indicators.

The analysis of the 2018-2022 Aceh provincial government financial Reports using a ratio analysis approach (viewpoints in the special autonomy framework)

The aim of this research is to analyze the ratios of the Aceh provincial government's financial reports. Financial ratio analysis is useful for determining the financial health of local governments both now and in the future. The ratios used are the effectiveness ratio, efficiency ratio, growth ratio, independence ratio, compatibility ratio, liquidity ratio and solvency ratio. This research uses secondary data taken from the website, namely taking the 2018-2022 Aceh provincial government financial report. The results show that the independence ratio is very low, the effectiveness ratio is very good, the efficiency ratio is good, the growth ratio is still fluctuating, the compatibility ratio can be said to be good, the liquidity ratio is very good, the solvency ratio less than good.

A Composite Study of HDFC Bank Financial Performance

This composite study delves into the financial performance of HDFC Bank, a cornerstone of India's banking sector renowned for its innovation and customer-centric approach. Established in 1994, HDFC Bank has ascended to become one of India's largest private sector banks, epitomizing operational excellence and financial prudence. The study underscores the importance of analyzing financial performance in the dynamic banking landscape, serving as a linchpin for strategic decision-making, risk management, and stakeholder engagement. Through a comprehensive analysis of HDFC Bank's financial metrics, the study aims to unravel underlying performance drivers, elucidate emerging trends, and delineate strategic imperatives for future growth and value creation. Methodologically, the study employs a structured approach encompassing primary and secondary data sources, financial ratio analysis, qualitative assessments, and interpretive synthesis. Primary data sources include HDFC Bank's annual reports and regulatory filings, while secondary sources encompass scholarly literature and industry reports. Financial ratio analysis encompasses liquidity, profitability, efficiency, and asset quality metrics, providing multifaceted insights into HDFC Bank's performance dynamics. Interpreting key financial ratios offers valuable insights into HDFC Bank's performance trends. Notably, the bank demonstrates robust profitability metrics, operational efficiency improvements, and healthy asset quality. However, challenges such as declining CASA ratio and net interest margin warrant strategic attention. The study offers actionable suggestions for HDFC Bank to enhance its financial performance. Strategies include optimizing capital utilization, diversifying revenue streams, strengthening asset quality, improving cost efficiency, fostering strategic partnerships, and prioritizing customer-centricity and risk management. In conclusion, HDFC Bank's financial performance underscores its resilience, innovation, and commitment to stakeholder value creation. By leveraging insights from this study and adopting strategic initiatives, HDFC Bank can navigate challenges, capitalize on opportunities, and sustain its position as a leading player in the dynamic banking landscape.

Pengaruh Variabel Keuangan dan Regulasi terhadap Harga Saham Perbankan di Indonesia: Studi Kasus pada Perbankan Indonesia

One user of financial reporting information is investors. An investor's main interest in a company's financial statements is to find out how profitable the company is from the perspective of capital investment in the company. One way to get more accurate information is to carry out financial ratio analysis. The data analysis used in this research is descriptive analysis and multiple regression analysis. This calculation uses statistical methods supported by the SPSS for Windows program to measure the impact of a bank's financial performance on its share price. 61.00% of the variation in all independent variables (CAR, RORA, NPM, ROA, and LDR) can explain the dependent variable (share price). The remaining 39.00% is explained by other variables not proposed in this research.

Analisis Pengelolaan Modal Kerja terhadap Kinerja Keuangan pada Perusahaan Daerah Air Minum (PDAM) Tirta Musi Palembang

Working capital is the excess of current assets over short-term debt. This excess is called net working capital. This excess is the amount of current assets that come from long-term debt and own capital. Ratio analysis is an analysis carried out by connecting various estimates in financial reports in the form of financial ratios. This financial ratio analysis can reveal important relationships between financial report estimates and can be used to evaluate the company's financial condition and performance. This research aims to determine the analysis of working capital management at PDAM Tirta Musi. To find out the Company's Financial Performance at PDAM Tirta Musi. To find out the Working Capital Analysis of Company Financial Performance at PDAM Tirta Musi Palembang. To obtain the necessary data and information, the author conducted research on PDAM Tirta Musi Palembang. From the results of the research that has been carried out, the results show that the profitability ratio using ROA (Return On Assets) calculations shows that the performance of the PDAM Tirta Musi Palembang Company is in good condition.

Ekspansi Perkebunan Pisang Melalui Modal Ventura Serta Meningkatkan Efisiensi Operasi

Indonesia, renowned for its fertile terrain, has great potential for fruit plantation due to its land and market. Bananas, especially the globally favored Cavendish variety, are predominant in both production and consumption. In this dynamic market, PT Sewu Segar Nusantara (Sunpride) stands as the dominant entity, leaving other players, like PT Lampung Banana Agri, with minimal market traction. PT Lampung Banana Agri is one of the players in the industry struggling to compete due to limitation of resources and operational challenges. Over the past five years, the company has encountered negative income, and signaling an urgent need for strategic redirection to maintain operational viability. This research ventures into understanding these challenges, deriving insights from both internal and external vantages. Employing tools like SWOT, VRIO, and financial ratio analysis, the company's intrinsic strengths and weaknesses are spotlighted. At the same time, frameworks like PESTLE and Porter's Five Forces clarify the macroeconomic and market forces at play. Central to this exploration is an analysis of the company's financial statements from 2016-2022, with a caveat: the reliance on public data means certain assumptions might need real-world validation. From these comprehensive analysis, actionable strategies emerge. The TOWS Matrix, an essential analytical tool, bridges internal capabilities with external opportunities, leading to concrete recommendations. A prime proposition is the acceleration of PT Lampung Banana Agri's production and sales, aiming for a swift return to profitability. Capital budgeting methodologies further validate the viability of farm expansion, identifying venture capital as a potential financial ally. It is noteworthy that even with the heftier interest rates inherent to venture capital, the benefits to the company are pronounced. Sensitivity analysis further underscore the pivotal role of product pricing, demonstrating its precedence over interest rate considerations. In essence, this research offers PT Lampung Banana Agri a roadmap, potentially transforming challenges into opportunities within Indonesia's competitive banana market.
 Keywords: Cavendish, Net Present Value (NPV), Financial Ratios, Capital Budgeting

The Effect of Financial Performance and Budget Ratcheting on Capital Expenditure Allocation in Districts/Cities of Central Java Province

This study examines the effect of regional financial performance (effectiveness ratio, efficiency, fiscal decentralization) and budget ratcheting on the allocation of capital expenditure in local governments in Central Java Province from 2018-2021. The population in this study were all Regency/City Regional Governments in Central Java Province in 2018-2021. The sample used was 35 local governments. Hypothesis testing using panel data regression. The results showed that regional financial performance (effectiveness ratio, efficiency, fiscal decentralization) and budget ratcheting affect capital expenditure allocation. Effectiveness and efficiency ratios negatively affect capital expenditure allocation, fiscal decentralization ratio positively affects capital expenditure allocation, and budget ratcheting negatively affects capital expenditure allocation. This study provides empirical evidence that one of the tools to analyze regional financial performance in managing regional finances is to conduct a financial ratio analysis. The novelty of this research is the addition of budget ratcheting variables that have not been widely studied in Indonesia, especially those using local government objects.

The Financial Health Analysis and Income Diversification Case Study on Indonesia Corruption Watch (ICW)

NGOs are agents of change that were formed with the aim of meeting social development needs that have not been able to be carried out or fulfilled by the government as state administrator. To maintain their existence, NGOs are required to maintain healthy financial conditions and diversified funding to ensure the survival of the organization so that it can provide a sustainable impact for its beneficiaries. Therefore, measuring NGO financial performance is very important. The aim of this research is to determine the financial performance and funding diversification of the NGO Indonesia Corruption Watch (ICW). The method used in this research is qualitative descriptive using financial ratio analysis and funding diversification on secondary data obtained from the website https://antikorup.org, in the form of financial reports for 2017-2021. The financial ratios calculated to measure ICW's financial performance use the ratio measurement method developed by Ritchie and Kolodinsky (2003), as well as funding diversification which will be measured using the Hirschman Herfindahl Index (HHI). The research results show that the financial health of ICW is in the good category with diversified income, it is known that the level of dependency on main donors is small. This has a positive impact on the sustainability of ICW to be able to continue to advocate for strengthening the people's bargaining position to control the state and participate in decisions to realize democratic governance, free from corruption, with economic, social and gender justice.