Asset Turnover Ratio Research Articles

Analisis Rasio Aktivitas Untuk Mengukur Kinerja Keuangan PT PLN Persero Periode 2021 – 2023

Problems related to finance are very crucial problems for an entity, so it is necessary to carry out an analysis of its financial reports. The target of this research is to analyze activity ratios in order to measure the financial performance of PT PLN (Persero) during the 2021-2023 period. The approach used is a quantitative descriptive method. The research results show that the billing turnover ratio in the 2021-2023 period has decreased but is still in the Healthy category. Analysis of the inventory turnover ratio in the 2021-2023 period has decreased, however the company is still in the Healthy category. Analysis of the total asset turnover ratio for the 2021-2023 period has increased. Even though it has increased, the company is in the Less Healthy category. We hope that the research results can provide an in-depth understanding regarding the financial stability of PT PLN (Persero) and become a consideration in making the right decisions.

Du Point Method as Tool for Financial Performance Analysis

This study undertakes a comprehensive financial performance analysis of Agricultur al Development Bank Limited (ADBL) over a specified period, employing the Du Pont method. Focusing on key financial metrics such as Net Profit Margin (NPM), Total Asset Turnover Ratio (TATR), Equity Multiplier (EM), and Return on Equity (ROE), the study aims to provide a detailed examination of ADBL’s efficiency in translating revenue into profit, asset utilization, capital structure decisions, and overall profitability. By utilizing the Du Pont method, the analysis aims to break down ROE into its constituent parts, offering valuable insights into the sources of ADBL’s financial performance and shedding light on the interplay between profitability, efficiency, and financial leverage. The study adopts a case study research design with quantitative approach with ADBL as the focal point. This approach allows for an in-depth exploration of the relationships between variables that influence the financial decisions within the bank. Findings from the analysis highlight fluctuations in NPM, stable asset utilization as indicated by TATR, an increasing reliance on debt financing depicted by EM, and significant fluctuations in ROE. Correlational analysis underscores the influential role of profitability in achieving better ROE, along with a moderate negative correlation between NPM and EM. In conclusion, these insights empower stakeholders with valuable information for assessing ADBL’s financial strength, risk profiles, and strategic decision-making within the banking industry.

Do Islamic Financial Resources Affect Profitability Of Islamic Banking?

This study aims to obtain empirical evidence of the influence of Islamic financial resources on the profitability of Islamic banking. Profitability is measured using several ratios, namely return on assets (ROA) and net profit margin (NPM), while the Islamic financial resources used in this study include temporary syirkah fund (TSF), non-performing financing (NPF), asset turnover ratio (ATR), and debt-to-equity ratio (DER). The population of this study is Islamic banking from some member countries of the Organization of Islamic Cooperation (OIC), such as Indonesia, Saudi Arabia, Kuwait, the United Arab Emirates, and Qatar. The research sample used purposive sampling, while the data analysis technique was multiple linear regression. The selected samples were 25 Islamic banks from 2013-2021, and 213 observation data were produced. The results of this study indicate that TSF, NPF, ATR, and DER simultaneously affect the profitability of Islamic banking. However, for partial testing, TSF, NPF, and DER negatively affect profitability, while ATR positively affects profitability. The implications of this study theoretically can be used to add references related to signaling theory in analyzing the phenomenon of fluctuations in Islamic banking profitability. This study has practical implications for Islamic banking management as a reference for utilizing Islamic financial resources following the characteristics of Islamic banking businesses in Indonesia, Saudi Arabia, Kuwait, Qatar, and the United Arab Emirates.

DOES FINANCIAL RATIO IMPACT FINANCIAL DISTRESS IN BANKING SECTOR ?

Banking has an important and strategic role in the progress of the Indonesian economy. Bank bankruptcy is also the biggest contributor to the collapse of the economy. This research aims to determine the influence of liquidity ratios (current ratio), leverage (debt ratio) and activity ratio (TATO) on the occurrence of financial distress in the banking subsector listed on the IDX in 2018-2022. The dependent variable in this research is financial distress and the independent variables in this research are Current Ratio, Debt to Asset Ratio, and Total Asset Turnover Ratio. Sample determination was carried out using the purposive sample method. The total population was 42 sample companies from which 14 companies were selected. This research uses descriptive statistical analysis methods, classical assumption testing, multiple regression analysis and hypothesis testing. The results of this research show that liquidity (Current Ratio) has a significant negative effect on financial distress. Leverage (Debt to Asset Ratio) has a significant positive effect on financial distress. Total Asset Turnover Ratio has a positive and significant effect on financial distress. For further research, it is hoped that additional proxies and years of the study population will be added so that the results are more varied.

Financial Performance Analysis of PT. Sewindo Consultans for the Years 2021-2022

This research aims to analyze the financial performance of PT. Sewindo Consultans for the years 2021-2022. The research method used is descriptive research with a quantitative approach. The data used in the research are the financial data from the income statement and balance sheet. Secondary data was used in this research. Financial ratio analysis was used as the method of data analysis. The research findings indicate that: Liquidity ratios, which measure the company's ability to meet its short-term obligations through the current ratio and quick ratio, are in a "poor" condition. Solvency ratios, which measure the extent to which the company's assets are financed by debt through the debt to assets ratio and debt to equity ratio, are in a "poor" condition. Activity ratios, which measure how effectively the company utilizes its assets through the fixed assets turnover ratio, are in a "poor" condition, while the total assets turnover ratio is in a "good" condition. Profitability ratios, which measure the company's ability to generate profit through the return on investment and return on equity indicators, are in a "poor" condition. In general, the results of the liquidity, solvency, activity, and profitability ratio analysis of PT. Sewindo Consultans' financial performance for 2021-2022, as seen from various indicators used, show that almost all of them are below industry standards, indicating that the company is in a "poor" condition.

Portfolio Optimization with Entropy-CRITIC-IDDWS- PROMETHEE Model in BIST Retail Trade Sector

This research aims to construct an ideal stock portfolio by using financial data from firms in the BIST Retail Trade Sector throughout the 2022-2023 timeframe. . Entropy, CRITIC, IDDWS and PROMETHEE methodologies were used in the study. The criterion weights were determined using the approaches of Entropy, CRITIC, and IDDWS. The alternatives were ranked using the PROMETHEE method. According to the Entropy method, the most effective evaluation criterion on performance is the return on equity ratio in 2022 and the asset turnover ratio in 2023, according to the CRITIC method, the financing ratio in 2022 and the current ratio in 2023, according to the IDDWS method, the financing ratio in 2022 and the asset turnover ratio in 2023.It was concluded that there were 6 companies with values between 0 and +1 in the entire 2022-2023 period, there were 6 companies on the efficient frontier. These firms are CASA, SOKM, VAKKO, BIMAS, SUWEN and TKNSA. The study has a very unique perspective in terms of both proposing a new and original integrated model (Entropy-CRITIC-IDDWS-PROMETHEE) to investors about optimal portfolio selection and testing the proposed model for the 1st time in this study and the breadth of the data set used.

Value Relevance and Share Price Dynamics: An Empirical Analysis of Indian Multinational Corporations

The share price is one of the major aspects of taking financial decisions by the investors. This study has investigated the impact of value relevance on the share price of Indian multinational companies. In this study, the top 10 multinational corporations (MNCs) have been taken for the analysis of data from the financial year 2018–2019 to 2022–2023. However, share price has been considered a dependent variable, whereas earnings per share (EPS), book value per share (BVPS), price to book value (PB), price to earnings (PE) and assets turnover ratio (ATR) have been considered independent variables. By employing correlation, ordinary least squares (OLS), fixed effect model (FEM), random effect model (REM), Hausman test and the Jarque–Bera test, data have been analysed and significant associations among the given variables have been found. The outcome of the study has revealed that there is a significant impact of value relevance on the share price of the MNCs in India, as the p value derived from the analysis is less than .05. This means that a statistically significant relationship exists between the variables considered in the study. JEL Codes: G10, M41, Y10

Analisis Kinerja Keuangan Untuk Mengukur Tingkat Kesehatan Perusahaan Manufaktur Sub Sektor Farmasi pada Bursa Efek Indonesia Periode Tahun 2018-2022

The aim of this research is to analyze the company’s financial performance to measure the health level of pharmaceutical sub-sector manufacturing companies listed on the IDX in terms of liquidity, solvency, profitability and activity ratios for the 2018-2022 period. The sample used was 9 pharmaceutical sub-sector companies. The data analysis method used is quantitative descriptive. The research results show that the average ratio of liquidity, solvency, profitability and activity for pharmaceutical sub-sector companies fluctuates. Based on the liquidity ratio, Kimia Farma Tbk has the highest average value of the current ratio, Sido Muncul Herbal & Pharmaceutical Industry Tbk has a quick ratio and Indofarma Tbk has a cash ratio so it is classified as a company with the highest level of health. The solvency ratio in the debt to equity ratio and debt to asset ratio of the Sido Muncul Herbal & Pharmaceutical Industry Tbk has the lowest average value ratio, while the long-term debt to equity ratio of Darya Varia Laboratoria Tbk is classified as a company with the highest level of health. Tempo Scan Pacific Tbk’s profitability ratio has the highest average ratio value for net profit margin and return on assets and Pyridam Farma Tbk for return on equity so it is classified as a company with the highest level of health. The activity ratio in the inventory turnover ratio and the fixed asset turnover ratio of Darya Varia Laboratoria Tbk and Organon Pharma Indonesia Tbk in the total asset turnover ratio each have the highest average ratio values so they are classified as companies with the highest level of health.

The Impact of Value-Added Intellectual Capital on Corporate Performance: Cross-Sector Evidence

This study explores the relationship between intellectual capital (IC) and the financial performance of 250 publicly traded companies in France, Germany, and Switzerland from 2009 to 2018, addressing the gaps in prior research regarding the differential impacts of IC components across countries and industries in Western and Central Europe. Using the Value-Added Intellectual Coefficient (VAIC™) approach, this study evaluates human capital efficiency (HCE), structural capital efficiency (SCE), and capital employed efficiency (CEE). Panel regression analyses at the country and industry levels were conducted to assess their effects on financial metrics, such as return on equity (ROE), return on assets (ROA), and asset turnover ratio (ATO). The findings reveal a significant positive association between SCE, CEE, and firm performance, with CEE showing the most substantial effect, while HCE had a relatively weaker impact. Additionally, the study uncovers a trade-off between the accumulation of patents and trademarks and short-term financial performance, raising new considerations for intellectual property management. This research contributes to the literature by providing a nuanced understanding of how IC components influence financial outcomes across different contexts and offers practical insights for firms aiming to optimize structural capital and capital-employed strategies for improved financial performance while acknowledging the limitations regarding the sample of publicly traded firms.

Measuring business impacts on the sustainability of European-listed firms

The Environmental, Social, and Governance (ESG) themes assume a central position in the foundation of business strategies and risk management for both private managers and financial institutions. Measuring the sustainability commitment of listed companies is required by regulators and Monetary Authorities and plays a pivotal role in the selection process for asset management companies. ESG ratings are used to assess the company’s commitment to sustainability. This paper explores how a firm business, measured by balance sheet data, influences the ESG rating. In particular, we focus on Europe, which countries first paved the way for the sustainable transformation of the economy through various policies and initiatives. We employ a Machine Learning approach to discern the non-linear relationships between ESG ratings and corporate data aiming to identify the prime factors influencing the ESG ratings. We can assess potential country or business sector-based discrepancies by selecting a sample containing firms listed on the major European indices (AEX, BEL, CAC, DAX, FTSE, FTSE-MIB, IBEX, OMX). We find that the firm size, measured by total assets, and the carbon intensity are the variables that most influence the ESG rating in countries where the economic sectors rely mainly on the business cycle and economic conditions. For companies operating in the technology, financials, and industrial sectors, the main ESG driver is the asset turnover ratio, which is a measure of the efficiency with which a company generates revenues, and the EBIT to revenue, which is a measure of the operating margin asset turnover and the Earnings Before Interest and Taxes (EBIT) to revenue ratio. We discover diverse factors affecting ESG ratings across various European countries, highlighting the impact of each nation’s policy on ESG commitment.

Analysis Of Financial Performance Of Muhammadiyah Aisyiyah Hospital In Jakarta Before And After The Covid-19 Pandemic

This study aims to analyze differences in the financial performance of the Muhammadiyah-Aisyiyah Hospital (RSMA) in Jakarta before and after the COVID-19 pandemic. Data was obtained from financial reports (2017Q1-2022Q4) which were analyzed using the ANOVA difference test. Based on the analysis and discussion, it was found that there was a significant difference in financial performance in the financial ratios of TATO and PBT, while the difference in DAR was not significant before and after the COVID-19 pandemic in the RSIJ Group. Apart from that, it was found that financial performance was better after the COVID-19 pandemic.This research provides practical insights for hospital managers and stakeholders in designing more effective policies for financial management during and after the pandemic. The increase in the Debt to Assets Ratio in several hospitals shows the need for better debt management strategies, while the decrease in the Total Assets Turnover Ratio emphasizes the importance of increasing the efficiency of assets use. The increase in Profit Before Tax in several hospitals indicates opportunities to increase profitability through appropriate management despite existing challenges. To improve the financial performance of Muhammadiyah private hospitals in DKI Jakarta, it is recommended to improve asset management to make it more effective, diversify income sources to reduce financial risks, improve revenue and operational expense management strategies, and invest in advanced health technology.

The Effect of Intellectual Capital, Debt to Equity Ratio, Total Asset Turnover and Current Ratio on Profitability in LQ45 Companies Listed on the Indonesia Stock Exchange

The purpose of this study is to obtain empirical evidence of Intellectual Capital, Debt to Equity Ratio, Total Asset Turnover, Current Ratio on Return on Asset listed on LQ45 the Indonesia Stock Exchange. The sampling technique used purposive sampling, the research samples obtained totaled 20 companies with quarterly research period from 2020-2022 so that there were 60 units of analysis. The research design was quantitative descriptive. The analysis technique in this research is multiple regression analysis method. The results showed that IC and TATO has a significant positive effect on Profitability, DER and CR have no effect on profitability. The implication of this research is that companies must pay attention to IC and TATO that can affect profitability so that company profitability can increase.

Analysis of Differences Between CR, DER, NPM, TATO on the Financial Performance of Telecommunication Companies Listed on the IDX During Covid-19

This research aims to analyze differences in CR, DER, NPM, TATO on the financial performance of telecommunications companies in Indonesia during Covid 19. The population used in the research is telecommunications sector companies listed on the Indonesia Stock Exchange. The sampling method uses purposive sampling technique. The data collection method is using secondary data originating from financial reports that have been published by the company via the official website www.idx.co.id. This research proves that Covid-19 does not cause the financial performance of telecommunications companies listed on the Indonesia Stock Exchange (BEI) to increase or decrease significantly, whether seen from the Current Ratio (CR), Debt to Equity Ratio (DER), Net Profit Margin (NPM). ), Total Asset Turnover Ratio (TATO). However PT. Telekomunikasi Indonesia Tbk. is the best company since Covid-19 because of the number of people consuming internet packages at PT. Telecommunications continues to improve. This result can be seen from the Net Profit Margin (NPM) ratio, where the net profit of PT. Telekomunikasi Indonesia Tbk. continue to increase.

Analisis Laporan Keuangan Untuk Mengatur Kinerja Keuangan Dengan Rasio Keuangan (Pada PT Unilever Indonesia Tbk Periode 2018-2021)

This study aims to analyze the this study aims to analyze the financial performance of PT Unilever Indonesia Tbk. by using financial ratio. The research method used is quantitative descriptive, the data source is secondary data. The data collection technique was carried out using a documentation technique in the form of PT Unilever Indonesia’s financial statement from 2018 to 2021, which was measured using financial ratio, consisting of: liquidity ratio, solvency ratio, profitability ratio, and activity ratio. The data analysis method in this study is a descriptive analysis method by collecting, processing, and analyzing existing data to provide an overview of the conditions under study. Based on the result of research and analysis that has been carried out, financial performance at PT Unilever Indonesia Tbk. is measured using (1) Liquidity ratio, consisting of: current ratio, quick ratio, cash ratio, cash turnover ratio, and net working capital stock ratio, it can be concluded as a whole that its financial performance is declared “Not Good”. (2) Solvency ratio, consisting of: the ratio of debt to assets and debt to equity can be concluded as a whole that its financial performance is declared “Not Good”. (3) Profitability ratio, consisting of: return on investment ratios, return on equity ratios, gross profit margins, and net profit margins, it can be concluded as a whole that the financial performance is declared “Good”. (4) Activity ratio, consisting of: total assets turnover ratio, and fixed assets turnover ratio, it can be concluded that the overall financial performance is stated to be “Good”.

The Impact of Research and Development Investment on the Performance of Portuguese Companies

This study investigates the impact of Research and Development (R&D) investment on the performance of Portuguese companies, specifically addressing the gap in understanding how R&D influences a company’s value and performance. We employ a dynamic panel data model estimated using the Generalized Method of Moments (GMM) to account for potential endogeneity issues. This approach allows us to analyze the influence of R&D investment on the Return on Operating Assets (ROA) for Portuguese companies with significant R&D investments between 2012 and 2019. The analysis reveals that while R&D investment itself may not have a statistically significant short-term impact on ROA, lagged financial performance, leverage, asset turnover ratio, and accounts payable turnover all demonstrate a statistically significant relationship with the dependent variable.

A COMPREHENSIVE FINANCIAL ANALYSIS OF ABHINANDAN MOTORS PVT. LTD.: EVALUATING LIQUIDITY PERFORMANCE AND TRENDS

This study presents a detailed financial analysis of Abhinandan Motors Pvt. Ltd. with a focus on understanding its liquidity performance, profitability, and asset management over the past five years (2019- 2023). The primary objective is to provide insights into the company's financial health by evaluating historical performance and assessing current financial positions. The research utilizes ratio analysis and common size analysis to examine liquidity trends, profitability, and asset management. Key findings indicate a steady increase in share capital and significant growth in fixed assets, with fluctuations in current assets and liabilities. The ratio analysis reveals variable liquidity levels, with significant changes in the current, quick, and cash ratios, while the current assets turnover ratio shows improved efficiency. The study aims to identify the financial strengths and weaknesses of the company and offers insights for future financial strategies.

The Nexus Between Human Capital Efficiency and Financial Performance: A Case of Malaysian Plantation Sector

This research discusses “The Impacts of Human Capital Efficiency on Financial Performance in the Malaysian Plantation Sector," which seeks to investigate the correlation between human capital efficiency and financial performance within the Malaysian plantation sector. The study employs a sample of twenty (20) Malaysian Plantation companies using STATA 14 for panel data analysis. The results demonstrate a strong correlation between human capital efficiency and financial performance. Companies that have higher human capital efficiency tend to have better financial performance, as indicated by metrics such as return on assets, asset turnover ratio, and leverage. These findings highlight the significance of efficiently overseeing and utilizing human resources to influence financial results in the plantation sector. The study focuses on the importance of investing in the development and optimization of human capital to improve financial performance. Additional research is advised to investigate other factors that may impact on this association and to evaluate the applicability of the findings to different nature of businesses and environments.

ANALYSIS OF LIQUIDITY, SOLVENCY, PROFITABILITY, ACTIVITY, INVESTMENT RATIO IN ASSESSING FINANCIAL PERFORMANCE ON TELECOMMUNICATIONS COMPANIES REGISTERED ON THE IDX YEAR 2020 – 2022

The aim of this research is to analyze Liquidity, Solvency, Profitability, Activity, Investment Ratios in Assessing Financial Performance in Telecommunication Companies Listed on the IDX in 2020 - 2022. The method used in this research is a quantitative descriptive method, the data in this research uses data secondary. Based on the research results, it shows that the Liquidity Ratio of PT. Inti Bangun Sejahtera, Tbk in 2021 was measured based on the Current Ratio of 280.86% which was declared very good in assessing Financial Performance. PT Solvency Ratio. Inti Bangun Sejahtera, Tbk in 2021 was measured based on the Debt to Asset Ratio of 31.03% which was declared very good in assessing Financial Performance. Profitability Ratio PT. Solusi Tunas Pratama Tbk in 2022 based on a Net Profit Margin of 49.59% is declared very good in assessing Financial Performance. The Activity Ratio which is measured based on the Total Asset Turnover Ratio is stated to be not good in assessing Financial Performance. Investment Ratio PT. Bali Towerindo Sentra Tbk in 2022, which was measured based on a Dividend Yield of 18.43%, was declared very good in assessing the Financial Performance of telecommunications companies listed on the IDX in 2020 - 2022.

Comparative Financial Performance Analysis of Neo Banks and Conventional Banks in India (2019-2023): An Empirical Study

Aim: This study will compare India's Neo Banking and Conventional Banking systems, focusing on their financial performance indicators from 2019 to 2023. The objective is to understand the differences in economic performance between these two banking systems and identify factors contributing to their net income. Methodology: The study adopts a quantitative research approach with a descriptive research design. It utilises secondary data from the Prowess Database and audited financial reports of Neo and Conventional banks registered with the Reserve Bank of India (RBI). Panel regression analysis is employed to analyse the data, considering both Fixed Effects (FE) and Random Effects (RE) models to assess the impact of various financial indicators on net income. Results: The study reveals significant differences in financial performance, using Fixed Effects (FE) and Random Effects (RE) models for panel regression analysis. Return on Assets (ROA) positively impacts net income, highlighting efficient asset utilization's importance, while Net Profit Margin (NPM) negatively impacts net income, indicating potential inefficiencies. The Asset Turnover Ratio positively affects net income, emphasizing operational efficiency. Gross Profit Margin (GPM) and Gross Profit show varying impacts, with the FE model preferred for reliability. The results suggest Neo Banks, despite operational efficiency and innovation, struggle with profitability, whereas Conventional Banks, though more stable, need operational improvements and digital adoption. This study highlights the dynamic Indian banking sector and the need for both banking models to adapt to a balanced financial ecosystem. Further research is recommended to explore specific operational dynamics and market influences. Conclusion: The analysis reveals that while Neo Banks offer operational efficiency and innovative services, they face challenges in maintaining profitability. Conversely, Conventional Banks, while demonstrating stability, need to enhance operational efficiency and embrace digital innovation to remain competitive. The study underscores the evolving banking sector in India and the necessity for both Neo and Conventional Banks to adapt to technological advancements and changing consumer preferences. Emphasizing the importance of efficient asset utilization and operational performance, the findings suggest that a balanced approach integrating innovation and stability is crucial for a sustainable financial ecosystem. Further research should delve into specific operational aspects and market dynamics to deepen the understanding of these trends.

Combining nursery closed-system and pond grow-out common carp (Cyprinus carpio) production is a profitable business in Hungary

Extensive, large-scale long-term pond fish production has several challenges and high economic risks, such as continuous bird predation. Moreover, common carp (Cyprinus carpio) production costs are relatively high using this production strategy. To reduce risks and improve production safety and efficiency, European common carp farmers are challenged to shorten the classic 3-year production cycle. This study aimed to comprehensively analyze the main farm parameters, production efficiency, cost and revenue of a production strategy based on combining hatchery/nursery closed-system, a second phase of the nursery in ponds and a final phase of pond grow-out of common carp. A deterministic economic model was used. Combined production has a lower fish loss by bird predation, a shorter production cycle, a better feed conversion ratio than conventional pond fish production, and a similar yield at a cost of approximately 2.02 USD/kg. This value are higher than those assumed in the conventional extensive 3-year common carp, completely pond-based production strategy. However, the current assets turnover ratio is much lower in the latter case. The yearly average net revenue can increase by implementing a more intensive combined production strategy. The combined strategy can improve security and predictability of production while reducing the pond area used for grow-out of extensive common carp farm.