Assessment Of Financial Performance Research Articles

Assessment of Financial Performance of Agricultural Cooperative Unions: The Case of West Harerghe Zone, Oromia Region, Ethiopia

Financial statement analysis involves comparing cooperative union performance and evaluating trends in the unions’ financial position over time. Managers use financial statement analysis to identify situations demanding attention; potential lenders use financial analysis to determine whether the union is creditworthy; and stockholders use financial analysis to help predict future earnings, dividends, and free cash flow. This study is conducted on Assessment of Financial performance of Agricultural Cooperative unions: the Case of West Harerghe zone, Oromia region, Ethiopia. The general objective of this study was to evaluate financial performance of agricultural cooperative union. For this study, the researchers used both primary and secondary sources of data taken from purposively selected two cooperative unions (i.e. Burka Galeti and Chercher Oda bultum) since they do have audited financial statements out of five unions found in western Haraghe. The study also used FGD and interview with fiancé managers and employees of the union for further explanation. Based on the financial statement analysis the researchers found that the agricultural cooperatives are efficient and effective in asset utilization, activity and debt equity management ratios. However, the financial statement analysis showed that the current asset ratio is below the industry standard that cannot cover its short term liabilities form its current asset section of the balance sheet. Moreover, the profitability ratio of the unions revealed that the agricultural cooperative unions are efficient to make profit but the margin of profit is below 25% that cannot make the union successful to cover all the incidental costs that are borne within short and long-term periods. The OLS model revealed that quick, fixed asset turnover, total asset turnover, inventory turnover and gross profit margin ratios are significantly and positively affecting ROA. As a result, the researchers recommend that the agricultural cooperative unions are expected to improve its effective and efficient management of the day to day activities of the union. Furthermore, the unions are expected to higher managers who have the caliber to manage each and every activities of the union and who are visionary to bring success for the unions.

Financial Performance Assessment of Construction Firms by Means of RAM-Based Composite Indicators

This paper aims to provide a novel construct that is based on data envelopment analysis (DEA) range adjusted measure (RAM) of efficiency and demonstrate its practical implementation by evaluating the financial performance of a sample of three upper-class contracting license (Classes 5–7) Greek construction firms. In a two-step framework, firm efficiency (i.e., composite indicators (CIs)) is produced firstly by means of RAM using single financial ratios, which are selected by grey relational analysis (GRA), and then Tobit regression is employed to model the CIs. In light of the results, only 4% of the sampled firms are efficient, and the firm ranking is consistent with the ranking of Grey Relational Grande (GRG) values produced by GRA. Moreover, the firms with a contracting license of the highest level (Class 7) appear not to be superior in efficiency to their counterparts that belong to Classes 5–6.

Kinerja Keuangan Bank Syariah Mandiri: Sebelum dan Sesudah Penerapan Good Corporate Governance

This research aims to determine the Financial Performance Assessment Before and After Implementation of Good Corporate Governance (GCG) seen from the ratio (1) Liquidity, (2) Profitability, and (3) Capital. The research method is quantitative research with a comparative approach. The ratio used to measure the financial performance of Bank Syariah Mandiri Tbk consists of the ratio of FDR, ROA, ROE, and CAR. The data analysis technique used is the data Normality and the Mann-Whitney test. The results of this study based on the normality test show that the data are normally distributed. The Mann-Whitney test results show that (1) after implementing GCG, liquidity ratio has satisfactory performance assessment compared to before the implementation of GCG. (2) After implementing GCG, profitability ratio has satisfactory performance assessment compared to before the implementation of GCG. (3) After implementing GCG, the capital ratio has a satisfactory performance assessment compared to before the implementation of GCG

Social Economy, Environmental Proactivity, Eco-Innovation and Performance in the Spanish Wine Sector

Concerned about climate change, cooperatives in the wine sector are beginning to adapt their strategies, guided by cooperative principles that encompass high social responsibility and the pursuit of community values. In this context and focused on the analysis of the decisions that drive firms to be more environmentally sustainable, our goal is twofold. On the one hand, we wish to examine whether there exist differences between cooperative and non-cooperative firms as regards their environmental proactivity. On the other hand, we hope to demonstrate the diversity of behaviors within the category of cooperative firms, identifying the possible patterns of environmental proactivity in Spanish cooperatives in the wine sector. We first conducted a difference of means t-test for independent samples (n = 251; sampled in 2017)—cooperatives (51) vs. non cooperative firms (200)- and then a two-stage cluster analysis and a subsequent variance analysis, using SPSS 24. Our results show no significant differences between cooperative and non-cooperative firms concerning their environmental behavior and underlines the diversity within the cooperatives in the wine sector as regards their environmental proactivity, revealing the existence of proactive, preventive and activist patterns of behavior. These patterns also show differences in the motivations for their environmental behaviors and their assessment of financial performance.

The Assessment of Financial Performance of the Lithuanian Dairy Sector’s Listed Companies

Abstract The article analyses the Lithuanian dairy sector companies’ financial performance and its determinants. Economic value added (EVA) is employed in the paper as a measure of financial performance and labour productivity, revenue from exporting, gross profit margin and cost of debt are used as independent variables to identify determinants influencing performance. The results of the analysis show that EVA (as financial performance measure) fluctuates during the periods and has an opposite trend direction in some periods for some companies. The revenue from exporting and gross margin are found to have a significant positive impact on EVA (financial performance measure).

An Experiential Examination of Financial Performance of Foremost Power Segment Organisation - APSPDCL

Financial analysis is the way toward recognizing the money related qualities and shortcomings of the firm from the accessible accounting data and financial statements. The analysis of financial statements is a significant aid to financial analysis. They give information on how the firm has acted before and what is its current financial position. The analysis is done by establishing a relationship between the different items of financial statements. Financial performance assessment is the way of discovering economic facts about an enterprise on the basis of interpretation of the available financial data. The essential goal of financial evaluation is to give a precise image of the financial condition of a concern in condensed form. The current investigation has been attempted to examine the financial performance of APSPDCL for a time of five years. The information has been gathered from different published annual reports and financial statements liquidity, Profitability. This paper is aimed at examining what ratios can determine the financial performance of APSPDCL.

Enterprises Financial Performance in a Globalized World

World globalization has a significant impact on the financial performance and financial health of enterprises. The aim of the paper is to analyse and compare the financial performance of selected enterprises under the conditions of globalization. Paper will work with six selected enterprises from the IT sector, which represents one of the fastest growing sectors in the globalized world. Each of them will be from the Slovak Republic. As input data will be used their financial statements during years 2015-2018. These data will be obtained from the Amadeus database - a database of comparable financial information for public and private companies across Europe. The methods of financial-economic analysis will be used to analyse these data. Especially, the paper will be work with selected financial ratios from analysing of liquidity, profitability, indebtedness, and activity. The theoretical part of the paper will contain a literature review and historical development of financial performance assessment and theoretical aspects of enterprise financial performance. The practical part will contain the application of selected methods of financial-economic analysis in the database of enterprises. Paper findings brings evaluation of financial performance of enterprises in IT sector under the conditions of globalized world.

ANALISIS KINERJA KEUANGAN PT BANK RAKYAT INDONESIA (PERSERO), TBK

The Bank's Financial Performance Appraisal Method continues to evolve along with developments. This study aims to compare the level of financial performance of PT Bank Rakyat Indonesia (Persero) Tbk. in the period of Quarter I 2019 -Quarter II of 2020. The Bank's Financial Performance Level is measured through several assessments. These assessments include ratio assessments (ROA, ROE, NIM, BOPO). This research is a descriptive study with a quantitative approach. The subject of this research is the financial statements of PT Bank Rakyat Indonesia Tbk. (Persero). The object used in this research is the financial statements of PT Bank Rakyat Indonesia Tbk. (Persero) Quarter I 2019 -Quarter II 2020. The data collection technique in this study is by downloading financial reports from the official website of PT Bank Rakyat Indonesia Tbk. (Persero). The analysis technique used is the ratio assessment. The results of this study note that the Financial Performance Assessment of PT Bank Rakyat Indonesia Tbk. (Persero) with this ratio approach shows a continuing downward trend.

ANALISIS PENILAIAN KINERJA KEUANGAN MENGGUNAKAN PENERAPAN ECONOMIC VALUE ADDED (EVA) dan MARKET VALUE ADDED (MVA) PADA PERUSAHAAN TELEKOMUNIKASI YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE TAHUN 2015-2018

This study aims to determine the assessment of financial performance using Economic Value Added (EVA) and Market Value Added (MVA) methods for telecommunications companies listed on IDX in the period 2015-2018. EVA is an estimate of the actual economic profit of business for particular year. MVA is the reduction between market value of equity and equity capital invested. The research method used is a quantitative descriptive method with a sampel of telecommunications companies listed on IDX, with secondary data collection techniques. The results of this study indicate that from 2015-2018 PT. TELKOM has positive EVA, In 2015-2016 BTEL has postive EVA value, while 2017-2018 EVA negative value. ISAT 2015-2016 EVA value is negative, 2017 EVA Value is positive, 2018 EVA value is negative. While In 2015 XL has EVA negative EVA value, In 2016-2017 EVA value is positive, and 2018 XL has EVA negative. For the MVA calculation form 2015-2018 PT. TELKOM and BTEL have positive MVA values, FREN has MVA negative. In 2015 ISAT MVA is negative. In 2016-2018 the value of MVA is positive. Whereas In 2015-2016 XL has negative MVA, In 2017-2018 MVA value is positive. It can be seen that although the EVA value is positive, the MVA value is not necessarily positiv

Analisis Rasio Keuangan Untuk Menilai Kinerja Hotel Ciater Spa & Resort, Subang

Financial ratio analysis of a company is one of financial performance assessment that are very useful to management in making plan for both short term and long term. The purpose of this research is to evaluate the implementation of financial statement analysis carried out by Hotel Ciater Spa & Resort in 2013 and 2014. The research method used is descriptive method. From the results of analysis show that the level of liquidity ratios, solvency, and operational is quite high, while the ratio of profitability has. fluctuated and the ratio of the activity has not been fully effective.

Financial Leverage Determinants on the Financial Performance of a Company

The focus of the researchers is to examine the relationship between different financial leverage ratios like profitability, tangibility, growth and size to know the strength of the variables to justify financial performance of the company. The study is based on the secondary source of information collected from annual reports, websites, RBI bulletins, money control and CMIE reports. It is understood that the financial ratios are the strength of the financial performance assessment of a company for particular period of time which can be done through a well defined and designed research methodology basing on the facts and figures.

Assessment of Financial Performance and Efficiency of Islamic and Traditional Banks in the Post-Crisis Period

Much of the research surrounding Islamic banking has focused on the 2008 financial crisis and the distinctions between conventional and Islamic institutional performance. Given the consensus that due to lower risk profiles and higher efficiency performance, Islamic banking outperformed its conventional counterparts during that tumultuous period, it is important to extend the academic focus beyond this narrow timeframe. The current investigation has applied a systematic methodology to review quantitative data from several emergent studies regarding post-crisis performance comparisons between Islamic and conventional banking institutions. At the risk of regional or institutional bias, these findings have demonstrated a higher degree of volatility in technical and scale efficiency amongst Islamic institutions since 2010, yet simultaneously, a higher overall efficiency rate of 0.886 when contrasted with the average total efficiency of 0.771 in conventional banks. The evidence highlights a positive correlation between the risk-adverse investments utilised by the Islamic banking system, but suggests that there is significant opportunity for growth through network consolidation and institutional expansion in order for these banks to take advantages of regionalised economies of scale.

A Dynamic Approach to a Comparative Evaluation of Financial Performance of Sections and Sectors of the Polish Economy

Financial performance of companies and their groups is of major interest to all stakeholders. As a result, they assess categories such as profitability, financial liquidity, financial independence, and risk. Separate analyses carried out for each of those elements alone do not always deliver conclusive findings, which is where synthetic methods are helpful. A ranking based on the taxonomic measure of development is one of such methods. The aim of the paper is, firstly, to present opportunities for using a dynamic version of the taxonomic measure of development in a comparative and complex assessment of financial performance in PKD divisions (Polish Classification of Activity), and, secondly, to evaluate changes in this area in the years 2014–2016. The data used for developing the ranking were sourced from the joint publication of industry indicators by the Financial Analysis Commission at the Research Council of the Accountants Association in Poland and InfoCredit, and from the Statistics Poland.

Financial performance assessment using Grey relational analysis (GRA)

PurposeTraditional statistical methods to study the financial performance of any industry have many barriers and limitations in terms of the statistical distribution of the financial ratios, and, in particular, it considers only its positive values of it. The purpose of this paper is to estimate the financial performance of 24 Indian life insurance companies for the period from 2013 to 2016 using Grey relational analysis (GRA) proposed by Deng (1982) that accommodates the negative values in the analysis.Design/methodology/approachFinancial performance of 24 Indian life insurance companies for the years from 2013–2014 to 2015–2016 is examined using a total of 14 indicators from capital adequacy ratios, liquidity ratios, operating ratios and profitability ratios (PR). The methodology used is GRA to obtain the Grey grades to rank the performance indicators, where higher relational grade shows better financial performance, and a lower score depicts the scope for improving the performance.FindingsThe results rank the insurance companies according to their financial performance in which Shriram insurance stands first with higher relational grade score, followed by the companies like IDBI Insurance, Sahara Insurance and Life Insurance Corporation of India. The main finding is that PR which have negative values are playing a crucial role in determining the financial performance of Indian life insurance companies.Practical implicationsThis study has far-reaching practical implications in twofold: first, for the Indian life insurance industry, they have to concentrate more on PR for better financial health and, second, for any financial performance analysis, ignoring negative value ratios produce biased inference and GRA can be used for better inference.Originality/valueThis study is the first attempt to evaluate the financial performance of Indian life insurance using the GRA methodology. The advantage of GRA is that there is no restrictions on the statistical distribution of the data and it also accommodates the negative values, whereas all the other traditional methods insist on the statistical distribution of data, and, more importantly, they cannot handle negative values in the performance analysis.

Financial performance assessment of electricity companies: evidence from Portugal

The assessment of the efficiency performance of the electricity sector has been the focus of attention of several studies, but there is a lack of scientific literature specifically addressing the financial performance of electric utilities during the period mainly impacted by the financial turmoil in the world’s financial markets. Hence, this paper is aimed at assessing the financial performance of regulated companies operating in the Portuguese electricity market from 2010 to 2014, a period particularly marked by the financial assistance provided to the Portuguese government. With this objective in mind, we propose a modelling framework which combines the use of the generalized method of moments estimation method with data envelopment analysis. The generalized method of moments estimation method allowed us to select the intrinsic corporate variables that were then used to assess the financial performance of electricity companies through the slacks-based measure model. In this framework, the return on equity, the leverage and the cash flow to total assets were selected as outputs, while the values of depreciations and amortizations to total assets have been regarded as inputs. Our findings suggest that both in 2010 and 2014 the majority of non-efficient companies should foster the investment in new fixed assets in order to become efficient. Additionally, in both periods, the majority of inefficient electricity companies should further increase their return on equity in order to become efficient, highlighting the role of this financial indicator in the explanation of financial efficiency. Moreover, in 2014, non-efficient companies are able to efficiently generate cash flows since almost no adjustments are required regarding the cash flow to total assets values attained for these companies. Finally, the need to promote leverage in order to increase financial performance is more evident in 2010 than in 2014, signalling the need to reduce the level of debt of these companies in this period.

KINERJA KEUANGAN PADA PERUSAHAAN ASURANSI SYARIAH DI INDONESIA DAN PERUSAHAAN ASURANSI SYARIAH DI MALAYSIA PERIODE 2013-2015

The purpose of this research is to determine the differences in financial performance of Islamic insurance in Indonesia and Islamic insurance in Malaysia during the period of 2013-2015. This research method uses quantitative methods, and using sample of three Islamic insurance companies in Indonesia and eight Islamic insurance companies in Malaysia. Subsequently, do different test by using Mann-Whitney Test and Independent Sample T-Test. Assessment of financial performance is measured by the ratio of change of surplus ratio,underwriting ratio, incurred loss ratio, commission ratio, management ratio, premium growth ratio, and retention ratio. The data used is secondary data which is being collected of annual financial report from 2013-2015. The comparison shows that there’s significant difference in, underwriting ratio, andthere are no significant differences in surplus ratio, incurred loss ratio, commission ratio, management ratio, premium growth ratio, retention ratio.

PERBANDINGAN DAN TREND KINERJA KEUANGAN BPRS SELAMA LINKAGE PROGRAM DENGAN BANK SYARIAH PERIODE 2011 - 2016 (STUDI KASUS BPRS BAKTIMAKMUR INDAH, BPRS BHAKTI SUMEKAR, DAN BPRS PNM MENTARI)

The research aims to discover whether there are any differences in financial performance between Sharia Rural Bank (SRB) which take part in the linkage program and this study was to determine the trend of financial performance in period 2011-2016. The method used in this research is quantitative. The sample were SRB Baktimakmur Indah, SRB Bhakti Sumekar and SRB PNM Mentari and then carried out the analysis different test using ANOVA and Kruskal Wallis test. The variables used in financial performance assessment are ROA, ROE, BOPO, NPF, FDR, and CAR. The data used for this study are secondary data gathered from financial report. Trend analysis of this research showed that SRB Bhakti Sumekar have a good growth in ratio of ROA, ROE, BOPO, NPF and FDR, but SRB Baktimakmur have the most growth in ratio of CAR. Differences in financial performance viewed from ROE, BOPO, NPF, FDR, CAR. But, ROA do not any differences.

Assessment of financial performance and the effect on dividend policy of the banking companies listed on the Indonesia Stock Exchange

This study aims to determine the assessment of financial performance and the effect on dividend policy of banking companies listed on the Indonesia Stock Exchange in the period of 2014–2017. The assessment of the company’s financial performance is important. Results of the assessment will be consideration of financial performance for investors, one of them to predict the dividend policy. The prediction results will influence investors in making investment decisions. This study employs a quantitative approach. The assessment of financial performance is measured using variables of leverage, profitability and profit growth. They were analyzed using the multiple linear regression method. At the 0.05 significance level, the results of this study showed that the leverage has a negative and significant effect on dividend policy. Meanwhile, profitability and profit growth have no effect on dividend policy. In order to explain the influence between variables, the research is based on the theories underlying the dividend policy, namely the theory of residual dividends and smoothing theory. The results of this study support the residual dividend theory, that one of the dividend policies is determined by the company by considering the target capital structure and then distributing dividends with only the remaining profit.

Measuring the Financial Performance of Village Owned Enterprises (VOEs)

In order to accommodate village potentials and fulfillment of villagers’ needs, through Law No. 32 of 2004 concerning Local Government, the government provides great support so that the village has a business entity which is able to develop and drive the local economy. Law No. 32 0f 2004 states that the village can establish a village-owned enterprises (VOEs), village businesses formed / established by the village government whose capital ownership and management are carried out by the village government and the community, in accordance with the needs and potential of the village. In its development, VOEs were encouraged as economic institutions at the village level supported by the government in order to handle economic activities at the village level because their shares were dominated by the village government. In the framework of this achievement, the financial performance assessment is needed to give feedback for VOEs manager in making the right decision for VOEs development. This study aims to search a proper measurement that appropriate to measure the financial performance of Village Owned Enterprises (VOEs). The result of the study found that several financial ratios can be utilized to measure the financial performance of Village Owned Enterprises (VOEs). Those financial ratios can be classified into capital, asset, management, earning and liquidity assessment, which is known as CAMEL model:1) Ratio of Asset Development is used to measure the Capital Adequacy; 2) Ratio of Productive Asset Quality is used to measure the Asset Quality; 3)BoPo Ratio (Operational Cost of Operating Income) is used to measure the Management Efficiency; 4) Ratio on Asset (ROA) is used to measure the Earnings Quality; and 5)Loan to Deposit Ratio to measure the Liquidity.

STUDI EMPIRIS KINERJA KEUANGAN SEBELUM DAN SESUDAH AKUISISI PADA PT. BTPN SYARIAH TBK DI INDONESIA

Abstract: The empirical study analyzed and tested the significant differences in the financial performance of PT BTPN Syariah Tbk in Indonesia, two years before (2012-2013) and five years (2014-2018) after the acquisition. Financial performance assessment uses the RGEC method (Risk Profile, Good Corporate Governance, Earning, and Capital) by collecting company financial statement data related to research variables and ranking each NPF Gross analysis, NPF Net, FDR, GCG, ROA, ROE, NOM , BOPO and KPMM by assessing the soundness of the bank and conducting a Paired Sample T test. The results show a test of statistical differences in financial ratios of Bank PT. BTPN Syariah Tbk before and after the acquisition of the NPF Gross variable; NPF Net; FDR; ROA; BOPO there are significant differences and ROE variables; NOM; There is no significant difference in KPMM while the manual analysis of the research variables, before and after the acquisition shows the better position of NPF Net; ROA, ROE, NOM, KPMM, CGS remains good and FDR, NPF Gross, BOPO gets worse. The research implications are used to determine the effectiveness of acquisition policies, strategic planning information to prepare for acquisitions in order to form a better BUS than the previous banks which were first BUS and evaluation of decisions related to the obligation to change UUS to BUS in 2023. Keywords: Acquisition, Financial Performance