Assessment Of Financial Performance Research Articles

ANALYSIS OF FINANCIAL PERFORMANCE IN VARIOUS SECTORS: APPLICATION OF THE BENEISH M-SCORE MODEL IN CASABLANCA STOCK EXCHANGE MOROCCO

<p>This paper evaluates the financial performance of companies from different sectors on the Moroccan financial market, using the Beneish M-Score model. Initially developed to detect financial anomalies, the M-Score has evolved into a tool for assessing companies' overall financial performance and earnings quality. By analyzing financial indicators such as profitability, liquidity and operational efficiency, this study compares the financial dynamics of companies in sectors such as food, technology and transportation. The results highlight significant differences in performance, revealing both strengths and weaknesses in companies' financial management. The study also provides a comparison with industry standards, and offers recommendations for improving the assessment of financial performance using financial indicators and the M-Score.</p><p> </p><p><strong>JEL: </strong>G32, M41, L25</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0778/a.php" alt="Hit counter" /></p>

The Role of Corporate Governance in Banking Performance: Highlighted During the Covid Pandemic (Evidence in Indonesian Bank)

The study aims to analyze the impact of board size, number of non-executive Directors on Board, and Size of the Audit Committee on Return on Assets (ROA) and Tobin’s Q on banks listed on the Indonesian Stock Exchange between 2019 and 2022. The research method used is descriptive statistical analysis and regression test on a sample of 11 banking companies in Indonesia. The data used included relevant variables such as board size, non-executive director composition, audit committee size, ROA, and Tobin’s Q. The results of the analysis show that board size has a significant influence on ROA. However, board size had no significant influence on Tobin’s Q. Furthermore, the number of non-executive directors on board also proved to have a significant influence on ROA. However, the number of non-executive directors on board did not have a significant influence on Tobin’s Q. In addition, the size of the udit Committee also proved to have a significant influence on ROA and Tobin’s Q. The larger size of the Audit Committee provides more effective supervision, better risk management, and transparency in financial reporting, which has a positive impact on the company’s financial performance and market assessment. These findings have important implications that other factors, such as business strategies, risk management policies, or broader external factors, may also influence the company’s performance. Keywords: board size, number of non-executive directors on board, size of audit committee, return on assets, Tobin’s Q, Bank, Indonesia stock exchange

A Novel Multi-criteria Decision Making Approach Based on Bipolar Neutrosophic Set for Evaluating Financial Markets in Egypt

In the evolving landscape of financial markets, assessing company performance with precision and reliability is crucial for investors and analysts. This paper introduces an innovative framework for evaluating the financial performance of companies listed on the Egyptian Exchange (EGX) by integrating Bipolar Neutrosophic Sets (BNS) with Multi-Criteria Decision-Making (MCDM) methods. The proposed framework utilizes BNS to incorporate the inherent uncertainty and imprecision of financial data, and integrates MCDM methods to provide a comprehensive assessment of multiple performance indicators. Specifically, the evaluation focuses on seven critical criteria: Stock Returns, Volatility, Liquidity, Market Capitalization, Earnings Growth, Revenue Growth, and Analyst Ratings. By utilizing Bipolar Neutrosophic Weighted Average (BNWA) operators and similarity measures, the study effectively ranks companies through a nuanced analysis of these criteria. The results highlight the effectiveness of the proposed approach in providing a robust and accurate financial performance evaluation framework tailored to the unique dynamics of the Egyptian market. The study demonstrates that the hybrid model not only accommodates variations in criteria weights but also offers valuable insights for investment decisions in emerging markets. The approach exhibits resilience and adaptability, providing a more informed and reliable basis for evaluating financial performance. This research contributes to the advancement of financial performance assessment methodologies by showcasing the potential of combining BNS with MCDM techniques. The research also emphasizes the framework's practical applications and suggests future research directions for refining the model and exploring its use in diverse financial contexts.

Efektivitas penerapan pembayaran online berbasis e-Samsat dalam penerimaan pajak kendaraan bermotor pada Badan Pendapatan Daerah Provinsi Sulawesi Utara

In the current era where everything can be done using technology, including paying vehicle tax, the E-Samsat online application is expected to increase Regional Original Income in North Sulawesi Province. Therefore, I want to know the effectiveness of implementing E-Samsat in the community environment in the Regional Revenue Agency of North Sulawesi Province. This type of research is descriptive qualitative. The results of the research show that there is an increase in the target and realization of Motor Vehicle Tax revenue in 2020-2022, but it decreases in 2023. Judging from the data on Motor Vehicle Tax revenue through the E-Samsat based online application in 2020-2022 there is also an increase, and the same Just as target and realization data will decline in 2023, revenue via E-Samsat will also experience a decline in the number of people paying vehicle tax. However, according to the effectiveness ratio criteria determined by the Ministry of Home Affairs through Minister of Home Affairs Decree No. 690,900,327 concerning Guidelines for Financial Performance Assessment, the total amount of target data and realization of Motor Vehicle Tax revenue is included in the effective category. One of the factors that has not achieved the target and realization of Motor Vehicle Tax revenue is the lack of equitable outreach to all regions. Therefore, the Government, through the Regional Revenue Agency of North Sulawesi Province, must provide more extensive outreach or outreach to the community directly.

Analisa Dampak Penerapan Akuntansi Sewa Pembiayaan terhadap Laporan Posisi Keuangan, Laporan Laba Rugi, dan Rasio Solvabilitas: Studi Pada Perusahaan Terbuka di Indonesia

IFRS 16 is the latest lease accounting standard to be implemented by PSAK 73 in Indonesia. PSAK 73 regulates the recognition, measurement, presentation, and disclosure of leases for lessees by classifying leases as finance leases. This results in the assets and liabilities from lease transactions being recognized in the financial statements, with optional exceptions for short-term leases and leases with low-value underlying assets. This study aims to evaluate the impact of implementing PSAK 73 on the assessment of company financial performance through financial ratios. The sample consists of nine companies from each of three industrial sectors: manufacturing, mining, and services, which are listed on the Indonesia Stock Exchange in 2020. The method used in this study is the constructive lease capitalization model developed by Imhoff, Lipe, and Wright (1991). The results show that the impact of lease capitalization is most significant in the service industry, followed by the mining and manufacturing industries, with average changes in Debt to Asset Ratio (DAR) and Debt to Equity Ratio (DER), as well as decreases in Return on Asset (ROA) and Return on Equity (ROE).

COMPARISON OF FINANCIAL PERFORMANCE OF NATIONAL AND FOREIGN BANKS ON THE IDX FOR THE PERIOD 2018-2022

Financial statement analysis is an effort to find out how well the financial performance of a bank. This study intends to analyze the performance comparison between national and foreign banks and which one is superior between the two in order to determine its impact on the development of the Indonesian economy. This is because the existence of banking intermediation problems and potential banking speculation activities, both national and foreign, can have implications for the domestic economy. Financial performance assessment is done with CAMEL ratios (CAR, NPL, NIM, ROA, LDR). Purposive sampling is the sampling technique applied in this study. The sample consists of 5 National Banks and 5 Foreign Banks listed on the Indonesia Stock Exchange in the period 2018-2022. Secondary data obtained from banking financial statement documents on the Indonesia Stock Exchange is the type of data used in this study with the Mann-Whitney Test as a tool for analyzing data. The findings of the analysis conducted show that there is a significant difference in NIM and ROA. However, no significant differences were found in CAR, NPL, and LDR and national banks are still superior.

Financial and Environmental Performance Analysis of Logistics company on the Fortune 500 By MEREC-based AROMAN Methods

This study aims to examine the financial and environmental performance of a logistics company listed in the Fortune 500 Türkiye over the years. The current study is carried out within the scope of Ekol Logistics, one of Türkiye’s leading logistics companies. The data is obtained from the Fortune 500 Türkiye and Ekol’s Sustainability reports. In this study, a hybrid model integrating the method based on the removal effects of criteria (MEREC) and alternative ranking order method accounting for two-step normalization (AROMAN) method is employed. The MEREC findings showed that net sales change was the most significant criterion, while equity was the least significant criterion in the assessment of financial performance. Moreover, number of vehicles equipped with EURO 6 technology was the most significant criterion, while water consumption was the least significant criterion in the assessment of environmental performance. The AROMAN findings pointed out that Ekol's achieved the most outstanding financial results in the years 2020, 2021, and 2022. Additionally, Ekol achieved notable environmental performance in 2022. Moreover, sensitivity and comparative analysis are conducted to observe the validity of the results.

Financial Performance Assessment Using Balanced Scorecard Methodology in Indonesian Banks

The objective of this study is to assess the financial performance of XYZ Bank through the lens of the balanced scorecard approach. The research method employed is qualitative, with data drawn from the annual reports of the banks in question for the period spanning 2020 to 2021. This period encompasses both the pre-merger and post-merger phases of Bank Syariah Indonesia. The findings of this study indicate that, from a financial perspective, the combined ROE ratio of the three Islamic banks, which has undergone a merger, is improving and includes healthy qualifications, approaching 15%. The customer perspective reveals an encouraging improvement in profitability, which is attributable to both customer migration from the predecessor bank to the merged bank and new customer growth. The merger has facilitated operating efficiency due to the synergy of the merger, leading to an increase in employee productivity, as measured by revenue. The establishment of several business unit networks represents an innovative form of internal business process, which can facilitate service delivery. The implications of this research provide a more detailed description of performance measurement using data from the company's published annual reports. Previous balance scorecard research employed survey methods in order to obtain information related to the growth and learning perspectives, as well as the customer and internal business process perspectives. In contrast, this study uses only data from the company's financial statements and annual reports.

Analysis of key influencing factors on the financial performance of Jakarta Islamic Index 30 industrial firms

Purpose The purpose of this paper is to investigate the impact of size, asset quality, asset management, financial risk, gross domestic product and inflation rate on the financial performance of companies listed on the Jakarta Islamic Index of 30 industrial firms. Design/methodology/approach Based on the selected criteria, this study analysed an unbalanced panel of data from 30 industrial companies on the Indonesian capital market that are members of the Jakarta Islamic index. Profitability is measured using the dependent variables return on assets (ROA), return on equity (ROE) and stock prices. The influence of explanatory variables of internal factors, namely, size, asset quality, asset management, financial risk, gross domestic product and inflation is investigated using pooled OLS, fixed and random effect estimation. Findings The empirical findings indicate that the scale of a company has a significant impact on its performance, asset quality, asset management and financial risk. GDP has a substantial impact on financial performance, particularly as measured by ROA and ROE. This study’s ramifications have substantial effects on a broad spectrum of stakeholders. The results of this study provide the general public and investors with a greater understanding of the factors that influence a company’s performance on the Jakarta Islamic Index 30. Research limitations/implications The implication of this research is that a deeper comprehension of the factors that influence the financial performance of companies within industrial sectors that follow Islamic finance principles can help design more effective strategies and policies. Practical implications This research has significant practical implications in a number of crucial areas. First, it provides a comprehensive comprehension of the company’s financial performance in the industrial sector in accordance with Islamic finance principles. Second, the research findings provide more precise guidance on how company size, asset quality and macroeconomic variables influence the performance of Indonesia's financial market. Originality/value The study’s authenticity and value hold considerable importance. This study introduces novel perspectives on the assessment of corporate financial performance within industrial sectors through the lens of Islamic finance principles. It offers valuable insights that have not yet been extensively investigated by scholars in the field.

The Impacts of Accounting Information on the Cost of Capital of a Company

The cost of capital is heavily influenced by a company's accounting information. The cost of capital is the rate of return that investors want in exchange for putting their money into a business. Accounting information has an indirect effect on society via things like disclosure and openness. Companies get more trust from investors and the public when they make their financial data easily accessible and easy to understand. Since investors will have a clearer picture of the company's financial performance, they may be more willing to lend money at a reduced interest rate as a result of this greater openness. Another abstract influence is the appraisal of financial success. Investors and lenders use financial statements and other forms of accounting information to assess a company's profitability and financial health. Investors may get a sense of a company's profitability, asset management, and cash flow capabilities by looking at the company's income statement, balance sheet, and cash flow statement. A reduced cost of capital may be possible if financial performance indicators provide a positive picture of the company's financial health. Risk may be better evaluated with the use of accounting data. Financial data is used by investors in assessing the safety of a firm. Investors may get a sense of the company's financial health, leverage, and liquidity by examining financial statements and ratios. A reduced cost of capital is more likely to be offered by investors to a firm that has a good financial position and a low risk profile. In addition to improving openness and easing the evaluation of financial performance and risk, accounting information also affects the cost of capital. The cost of capital might be reduced if investors have more faith in a company because of the transparency it displays in its financial dealings. KEYWORDS: Accounting information, Cost of capital, Transparency and disclosure, Reliable financial information, Investor confidence, Lower risks, financial performance assessment

A study on financial performance of central bank of India

The banking industry plays a vital role in the economic development of a country which determines the money circulation among the people. The country's survival depends on the banking industry, which serves as the economy's foundation. Financial Performance is the only key tool which decides the operational efficiency along with sustainability of banking sector. The financial organization of branches and a different scope of monetary administrations, India's financial framework is enormous. The focus of this paper is to examine the financial performance of Central bank of India by using the analyzed ratios, for example, liquidity ratios, Solvency ratios, profit and loss ratios and balance sheet ratio are to be used for the assessment of financial performance of central bank of India with help of income and expenditures and consolidated balance sheet from the period of 2018 to 2022.

Analisis Rasio Profitabilitas Dan Rasio Aktivitas Sebagai Dasar Penilaian Kinerja Keuangan PT Angkasa Pura I Periode 2018-2022

his research aims to analyze the financial performance assessment of PT Angasa Pura I for 2018-2022 using profitability ratios and activity ratios. This research is descriptive research which is studied quantitatively. The variables in this research are Financial Performance, Profitability Ratios and Activity Ratios. The population in this research is all financial reports at PT Angkasa Pura I. The sample for this research is the financial position report, assets, sales and profit and loss report of PT Angkasa Pura I for 2018-2022. Based on the results of financial data analysis of PT. Angkasa Pura I, as measured by financial data analysis, namely profitability and activity ratios from the 2018-2022 financial reports, can be concluded that the financial performance of PT. Angkasa Pura I had good performance in 2018 to 2019 but experienced a decline in 2020 to 2021 respectively which was caused by certain factors, one of which was external factors, namely the presence of Covid-19. However, the company PT. Angkasa Pura I has tried to improve the company's performance as assessed by the level of profitability and activity ratios which show good value in 2022 even though the profit generated is still negative.

Assessment of Financial Performance of Siti Fatimah Hospital, South Sumatra Province, In The Application of The Regional Public Service Agency (PPK-Blud) Financial Management Pattern

Regional General Hospital (RSUD) is a Government-Owned Hospital tasked with providing health services for the community. The purpose of this study is to measure the financial performance of the Siti Fatimah Regional General Hospital (RSUD) of South Sumatra Province; since 2018, it has become a Regional Public Service Agency (BLUD). Data collection techniques are carried out by interview, observation and documentation methods. The data analysis method uses Financial Ratios and BLU Financial Management Compliance by the Regulation of the Director General of Treasury Number PER-22 / PB / 2020. The results of this study, from 2018 to 2022, when viewed from Financial Ratios, show that several ratios have not received optimal scores. Several indicators have not received an optimal score from the BLU Financial Management Compliance level. When viewed as a whole from the assessment of financial aspect performance, Siti Fatimah Hospital of South Sumatra Province has received a GOOD predicate. However, it has not achieved the most optimal score.

PROFITABILITY ANALYSIS OF PT EASTPARC HOTEL TBK BEFORE AND DURING THE COVID-19 PANDEMIC

The present research aims to analyze the financial performance of PT Eastparc Hotel Tbk before and during the COVID-19 pandemic. The assessment of financial performance is done through profitability analysis using some ratios, namely net profit margin (NPM), return on investment (ROI), and return on equity (ROE). Data was obtained from the annual financial statements of PT Eastparc Hotel Tbk from 2018 to 2021, where the time range 2018–2019 shows the performance before COVID-19, while the time span 2020–2021 shows the performance during COVID-19. The results of the data analysis show that there was an increase in all ratios and the component of the ratio in the window period accepted for the year 2020 as compared to 2019. The results also reveal that the average ratio of NPM before the pandemic was 10.01% and during the pandemic was 19.67%. The average ROI before the pandemic was 2.14%, and during the pandemic it was 3.32%. The average ROE before the pandemic was 2.78%, and during the pandemic it was 3.53%. These results indicate that in 2021, the performance achievement of PT Eastparc Hotel Tbk began to improve very well beyond the achievement of the year before the pandemic. This study provides representation about financial performances, especially in the profitability sector at PT Eastparc Hotel Tbk. The stakeholders will be able to review the company’s performance in order to make decisions for the company’s future. This study can also be a reference for further research.

PROFITABILITY ANALYSIS OF PT EASTPARC HOTEL TBK BEFORE AND DURING THE COVID-19 PANDEMIC

The present research aims to analyze the financial performance of PT Eastparc Hotel Tbk before and during the COVID-19 pandemic. The assessment of financial performance is done through profitability analysis using some ratios, namely net profit margin (NPM), return on investment (ROI), and return on equity (ROE). Data was obtained from the annual financial statements of PT Eastparc Hotel Tbk from 2018 to 2021, where the time range 2018–2019 shows the performance before COVID-19, while the time span 2020–2021 shows the performance during COVID-19. The results of the data analysis show that there was an increase in all ratios and the component of the ratio in the window period accepted for the year 2020 as compared to 2019. The results also reveal that the average ratio of NPM before the pandemic was 10.01% and during the pandemic was 19.67%. The average ROI before the pandemic was 2.14%, and during the pandemic it was 3.32%. The average ROE before the pandemic was 2.78%, and during the pandemic it was 3.53%. These results indicate that in 2021, the performance achievement of PT Eastparc Hotel Tbk began to improve very well beyond the achievement of the year before the pandemic. This study provides representation about financial performances, especially in the profitability sector at PT Eastparc Hotel Tbk. The stakeholders will be able to review the company’s performance in order to make decisions for the company’s future. This study can also be a reference for further research.

Analisis Rasio Profitabilitas Untuk Menilai Kinerja Keuangan Pada PT.Telkom Indonesia

The increase in net profit from 2020 to 2021 shows positive profitability growth. This indicates that PT Telkom Indonesia (PERSERO) Tbk has succeeded in increasing its operational efficiency, increasing revenue, or reducing ineffective costs. However, the decline in net profit in 2022 indicates changes in conditions or factors that influence the company's performance. It is important to pay attention to the company's net profit trends and conduct further analysis to understand the causes of changes in performance. The aim of this research is to analyze the profitability ratio of PT Telkom Indonesia (Perseroan) Tbk for the 2021-2022 period. Profitability indicators are used to evaluate a company's economic results. The data used in this research is secondary data in the form of financial reports published by PT Telkom Indonesia (company) Tbk for the 2021-2022 period which are available on the Indonesia Stock Exchange (BEI) or www.idx.co.id. The results obtained were PT. Telekomunikasi Indonesia Tbk needs to pay attention to factors that can have a significant influence on the assessment of the Company's financial performance, both in terms of GPM, NPM, ROE and ROA in the long term.

Effect of Standard Costing on Financial Performance of Manufacturing Industries in the North Rift Economic Block, Kenya

The aim of this study was to examine the effect of standard costing on financial performance. The study adopted explanatory research design and stratified sampling technique for data collection on a questionnaire with closed-ended questions. The sample size for the study was 220 consisting of 63 auditors and 157 accountants from 48 manufacturing industries. Cronbach’s alpha and factor analysis were used to test for the reliability and construct validity of the research instrument respectively while the hypothesis was tested using regression analysis. The result of the study revealed that standard costing (β = 0.216, P>0.000) with R2= 0.662 had a positive significant effect on the financial performance of manufacturing industries. The study concluded that there is a significant correlation between standard costing and financial performance and that one unit change in standard costing would cause one unit change in financial performance. Likewise, the study recommended proper costing records and the application of standard costing by manufacturing firms to help them in financial performance assessment and gain control over costs. Further research studies should consider targeting operation managers and financial managers. The scope of the study was limited to manufacturing industries hence future studies should focus on service industries to establish whether the study would yield the same results.

STATE AND REGIONAL OWNED ENTERPRISES : HEAD TO HEAD FINANCIAL PERFORMANCE COMPARISON AT THE YEARS OF 2017-2021

The performance of State-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD) is currently the main hope regarding state revenues and one source of regional income, because BUMN and BUMD are national assets and regional assets which are very important as a source of funds for economic recovery. nationally, especially the Covid-19 pandemic that has just passed. The aim of this research is to determine the performance of BUMN compared to the performance of BUMD. Logically, the very large resources of BUMN compared to BUMD should make BUMN's performance better than BUMD and the results are expected to be very different. The data used is BUMN and BUMD financial performance data for five years, namely the 2017-2021 period. In this research, financial performance assessment uses financial ratio indicators, Current Ratio (CR), Debt To Equity Ratio (DER), Debt To Total Asset Ratio (DTA), Net Profit (NPM), Return On Assets (ROA) and Return On Equity (ROE) Test the hypothesis using the Kolomogorov-Sminov for normality-test and t-sample independent-test. The results of this research show that the financial performance of BUMN determined by the Current Ratio (CR), Debt To Equity Ratio (DER), Debt To Total Asset Ratio (DTA), Return On Assets (ROA) and Return On Equity (ROE) is not significantly different from the financial performance of BUMD for the 2017-2021 period.The performance of State-Owned Enterprises (BUMN) and Regional-Owned Enterprises (BUMD) is currently the main hope regarding state revenues and one source of regional income, because BUMN and BUMD are national assets and regional assets which are very important as a source of funds for economic recovery. nationally, especially the Covid-19 pandemic that has just passed. The aim of this research is to determine the performance of BUMN compared to the performance of BUMD. Logically, the very large resources of BUMN compared to BUMD should make BUMN's performance better than BUMD and the results are expected to be very different. The data used is BUMN and BUMD financial performance data for five years, namely the 2017-2021 period. In this research, financial performance assessment uses financial ratio indicators, Current Ratio (CR), Debt To Equity Ratio (DER), Debt To Total Asset Ratio (DTA), Net Profit (NPM), Return On Assets (ROA) and Return On Equity (ROE) Test the hypothesis using the Kolomogorov-Sminov for normality-test and t-sample independent-test. The results of this research show that the financial performance of BUMN determined by the Current Ratio (CR), Debt To Equity Ratio (DER), Debt To Total Asset Ratio (DTA), Return On Assets (ROA) and Return On Equity (ROE) is not significantly different from the financial performance of BUMD for the 2017-2021 period.

ANALISIS PERBANDINGAN KINERJA KEUANGAN PERUSAHAAN SEBELUM DAN SESUDAH INITIAL PUBLIC OFFERING (IPO)

Initial Public Offering (IPO) can make changes for public companies and get additional capital. Investors can assess the company's financial performance by using financial ratios before and after the initial public offering consisting of Current Ratio, Debt Equity Ratio, Debt Asset Ratio, Total Asset Turn Over, Net Profit Margin, Return On Assets, Return On Equity. Assessment of company financial performance using financial reports using the purposive sampling method for energy sector issuers conducting initial public offerings in 2018-2019, data analysis techniques use descriptive test, Shapiro Wilk normality test, paired sample t-test and wilcoxon signed rank test. The results show that there are differences in financial performance after the IPO on the Debt Asset Ratio, Total Asset Turn Over, and Return On Equity. The result show there was no significant difference in financial performance after the IPO on the Current Ratio, Debt Equity Ratio, Net Profit Margin, and Return On Asset.

Analysis Of Financial Performance And Service With Hospital Independence In Rumah Sakit Daerah K.R.M.T Wongsonegoro Kota Semarang

The objective of this study is to examine the financial and service performance of the K.R.M.T Wongsonegoro Regional Hospital in Semarang City, which has been utilizing the Regional Public Service Agency Financial Management Pattern (PKK-BLUD) since 2007. By transitioning into a full (BLUD), the Semarang City RSWN has gained the ability to handle its finances independently, hence enhancing its performance and service quality. The present study incorporates quantitative research employing a time series methodology. The data utilized in this study consists of secondary data obtained from financial records and hospital management reports. The assessment of financial performance is conducted through the utilization of financial measures, encompassing liquidity ratios, solvency ratios, and profitability ratios. In the context of service evaluation, the measurement of service performance encompasses six distinct indicators. These indicators include the Bed Occupancy Rate (BOR), Turn Over Interval (TOI), Bed Turn Over (BTO), Average Length of Stay (ALOS), Gross Date Rate (GDR), and Net Date Rate (NDR). The research hypothesis was examined by the application of Pearson correlation. The findings of the study indicate a significant correlation between financial performance, as assessed by the solvency ratio, and both the cost recovery rate and level of independence. The level of independence exhibits a significant link with service performance, as assessed by BTO.