Financial Ratios Of Companies Research Articles

ANALISIS PENGARUH DEBT TO ASSET RATIO, RETURN ON ASSET, NET PROFIT MARGIN, TERHADAP HARGA SAHAM DI SEKTOR PERDAGANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2011-2013

ABSTRACTThis study aims to analyze Return On Assets, Debt To Asset Ratio and Net Profit Margin at the price of shares listed on the Indonesian Stock Exchange (IDX) for the period 2011-2013. Share prices are formed from the process of supply and demand that occurs in exchange. In addition, the stock price factor can be seen from the calculation of the company's financial ratios contained in the financial statements published on the Indonesia Stock Exchange (IDX). This research was conducted by purposive sampling with a sample of 104 companies. Data analysis used is multiple linear regression analysis. The results show that the net profit margin has no effect on stock prices, while the ratio of return on assets affects the stock price. From the test variables simultaneously the debt to asset ratio and net profit margin simultaneously have a significant effect on stock price prices on stock prices. The results of this study indicate that the net profit margin has no effect on stock price. And the ratio of debt to assets, return on assets and net profit margin has a significant effect on stock price prices.to explain these three variables.

IMPACT OF COMPANY FINANCIAL RATIO ON SHARE PRICE WITHIN THE PROPERTY AND REAL ESTATE INDUSTRY

Movements in share prices are caused by several factors, both internal and external. The objective of this research is to observe the impact of company financial ratio on share prices within the property and real estate industry using GARCH model. The reason why we chose this industry is because this industry can still grow even when the economic condition is unstable. The research shows that current ratio, debt equity ratio inventory turnover, price earnings ratio and return on equality are jointly significant in predicting share prices. Partially, only price earnings ratio does not significantly impact the share price.

ANALISIS ALTMAN Z-SCORE, GROVER SCORE, SPRINGATE, DAN ZMIJEWSKI SEBAGAI SIGNALING FINANCIAL DISTRESS (Studi Empiris Industri Barang-Barang Konsumsi di Indonesia)

This study purpose to determine whether there are differences among Altman model, Springate model and Zmijewski model to predict financial distress, and to find out which the Financial Distress prediction model has the most excellent implementation in Indonesia manufacture industry. Comparison of those six models were made by analyzing the accuracy of each model, by using the real condition of a company’s net income. The data used in the form of annual financial statements published by the company on the Indonesia Stock Exchange website. The sample in this study consisted of 116 financial data from 29 companies in Consumer Goods Industry. All companies are listed in Indonesia Stock Exchange Market at period 2012 - 2015. The company does not conclude yet, whether there is a prediction model that best suit the measurement. This cause by: (1) every model have its own superiority and weakness, (2) the company sample characteristic differences (company sector, company size) also influence the choice of prediction model being used, (3) the company financial ratio as independent variable used in bankruptcy prediction. Since the financial statements are reflecting the company’s financial ability of the signaling, the researchers limited the industry with the highest value of EPS and PER. This is done to avoid confounders in the proof of the accuracy of the model, Springate model, Ohlson model and Zmijewski model to predict financial distress. The data obtained from the Annual Financial Statements, IDX Fact Book and the Indonesian Capital Market Directory. In this study will be used t test, additional testing is done to see the feasibility of the model by observing the F test results and test the coefficient of determination (R2), R2 value used to examine differences among Altman, Grover, Springate and Zmijewski models in predicting financial distress. The analytical tool used is the One Way ANOVA with level of significance 5 %. The results from this research showed that any prediction model used in this study can be used to predict Financial Distress, particularly the Altman Z-Scores, which have the greater R2 analysis. Only Grover G-Score models have insignificant value t test and F-test is greater than the probability cannot be used to predict corporate Financial Distress. The results also showed that the most accurate model is the model Altman Z-Score. At the end of the study was to try predict 29 firms sample used listed on the Stock Exchange with Altman model. Predicted results showed that five companies are expected to experience Financial Distress in the future.

Macroeconomic indicators and corporate financial ratios in predicting financial distress

In 2015, the performance of the textile and garment industry declined by 4.79% due to the global economic crisis which caused the textile and garment industry to experience a continuous deficit. This is a sign that the company is experiencing financial distress. Such a condition could have been recognized early if the financial statements and macroeconomic conditions had been carefully analyzed. The purpose of this study is to determine the macroeconomic indicators and financial ratios of companies in predict-ing financial distress. Data sampling in this research was taken from textile and gar-ment industry sector companies listed on the Indonesian Stock Exchange (IDX). Ma-croeconomic indicators used are lending rate, consumer price index, IDX Composite, inflation, and IDR/USD exchange rate. The financial ratios used are debt equity ratio, total asset turnover ratio, current ratio, quick ratio, working capital ratio, net income to total assets ratio, and cash ratio. This research uses logistic regression analysis. The results indicate that current ratio and quick ratio can be used to predict financial dis-tress. The next research can use other sector companies or all sector companies listed on the Indonesia Stock Exchange (IDX).

An Analysis of how Financial Ratios of Companies in Turkey Are Affected by National Standards, and IFRS

Adoption in 2005 of IAS/IFRS by Turkish listed companies resulted in changes in classification, valuation and disclosure of financial items. This paper makes accessible to non-Turkish speakers a detailed investigation of the results from previous ratio analysis studies identified by Balsari & Varan (Balsari & Varan, 2014), in addition to presenting a more extensive analysis than Cengiz (Cengiz, 2014). Eight financial ratios have been analysed before and after implementation of international standards. One set of results compares the periods 2002-2003 with 2005-2006; and the other 2004 with 2005. The companies investigated are substantially the same in both analyses, but different versions of national standards are compared against international standards. Significant differences in average Book Value of Equity per Share are found after implementation of international standards for both sets of comparisons; and for one set only, at a lower confidence level, significant differences are indicated in the leverage ratio. The major contribution of the paper is the analyses of the differences during the pre and post implementation of international standards.

The Impacts of Fundamental and Macroeconomic Factors on the Stock Price of Oil Palm Plantation Companies in Indonesia Stock Exchange (IDX)

The oil palm plantation companies in this study were the selected companies listed on the Indonesia Stock Exchange. This study aimed to determine the impacts of fundamental and macroeconomic factors on the stock price of the oil palm plantation companies in IDX. The determination of the research area was based on the designed method (purposive sampling) consisting of PT Astra Agro Lestari Tbk, PT PP London Sumatra Indonesia Tbk, and PT Tunas Baru Lampung Tbk. The data was collected using literature review method with secondary data sources in the form of time series data of stock prices, fundamental and macroeconomic factors in the period from January 2006 up to June 2016. The results of this study indicated that the movement of stock prices of oil palm plantations in Indonesia Stock Exchange was influenced by the fundamental and macroeconomic factors which consist of ROE (Return on Equity) with a regression coefficient of -133.35, DER (Debt to Equity Ratio) with a regression coefficient of -26.37, and EPS (Earning per Share) with a regression coefficient of 15.47. The macroeconomic factors consist of Rupiah exchange rate with a regression coefficient of -0273 and the CPO (Crude Palm Oil) price with a regression coefficient of 0.859. For the investors, they can consider the overall internal and external factors, which are based on the company's financial ratios and macroeconomic conditions.

Penerapan sistem enterprise resource planning: Dampak terhadap kinerja keuangan perusahaan

This study aims to investigate the impact of implementation of Enterprise Resource Planning (ERP) system toward  company’s financial performance. The company's financial performance is measured by the ratio of labor productivity (LP), Return on Assets (ROA), Net Profit Margin (NPM), Account Receivable Turnover (ART), and Inventory Turnover (IT). Sample used in this study are 34 public listed companies that have implemented ERP system in the period of 2002-2013. Data were analyzed by comparing the company's financial ratios for 3 years before and after ERP implementation. The results show that productivity, receivables and inventory management are improved after ERP implementation. Unfortunately, the current research fail to show that there is an increase in company’s profitability after the implementation .

PENGARUH DEBT TO EQUITY RATIO, INSIDER OWNERSHIP, SIZE, DAN INVESTMENT OPPORTUNITY SET TERHADAP KEBIJAKAN DIVIDEN (Studi pada Industri Manufaktur yang terdaftar di Bursa Efek Indonesia Periode Tahun 2005-2007)

This study is performed to examine the effect of Debt to Equity Ratio (DER), Insider Ownership, Size and Investment Opportunity Set (IOS) toward Dividend Policy in manufacturing company which is listed in BEJ and share the dividend to shareholder. The objective this study is to scale and analyze the effect of the company financial ratios performance Debt to Equity Ratio (DER), Insider Ownership, Size and Investment Opportunity Set (IOS) toward Dividend Payout Ratio (DPR) in manufacturing company which is listed in BEJ over period 2005-2007. Sampling technique used here is purposive sampling on criterion (1) the company that trade their stocks in Bursa Efek Jakarta; (2) the company that represent their financial report per December 2005 – 2007; and (3) the company that continually share their dividend per December 2005 – 2007. The data is obtained based on Indonesia Capital Market Directory (ICMD 2008) publication. It is gained sample amount of 17 companies from 151 companies those are listed in BEJ. The analysis technique used here is multiple regressions with the least square difference and hypothesis test using t-statistic to examine partial regression coefficient and F-statistic to examine the mean of mutual effect with level of significance 0,05 or 5%. In addition, classical assumption is also performed including normality test, multicolinearity test, heteroscedasticity test and autocorrelation test. From the analysis result, it indicates that DER and Ln IOS variable partially significant toward DPR of the company on 2005-2007 period on the level of significance less than 5%, while it indicates that Ln Insider Ownership and Size variable partially not significant toward DPR. While simultaneously DER, Ln Insider, Size, Ln IOS proof significantly influent DPR in BEJ in level less than 5%. Predictable of four variables toward DPR is 43,3% as indicated by adjusted R square that is 43,3% while the rest 56,7% is affected by other factors which are not included into the study model.

Factors determining stock returns in property, real estate and construction companies in Indonesia

The main reason for investors or potential investors to invest in stocks is to derive maximum returns at minimum risk. One of the many factors determining stock returns from a company's shares consists of the company's financial ratios. The better the level of financial performance of the company, greater is the expectation of increase in its stock prices, and larger the benefit (return) from its shares to investors. The purpose of this study is to assess the impact of four factors, namely price-to-book value (PBV), the current ratio, debt-to-equity ratio (DER) and total assets turnover (TATO) on the level of stock returns in property, real estate and building construction firms listed in the Indonesian Stock Exchange for the period 2011-2014. The sample used in this study consisted of 18 companies, selected through the purposive sampling method. Regression analysis of panel data is the analytical tool used. The results have shown that TATO, DER and PBV influence the stock returns significantly.

Effectiveness of Book Closing Using Web Based Accounting Online System 2.0 to Know the Company's Financial Ratios

Financial ratios are very important in a company, because it is the most effective way to find out financial data on a company by comparing the current financial statements of the company with the previous one. To facilitate this comparison, book closure can be done. Closing the book itself is useful to determine the company's financial position before closing, by looking at the final results of the profit and loss. It is known that the process of closing the book takes a long time with extra precision. However, this has become easier by using WBAOS (Web Based Accounting Online System) 2.0, because companies are more flexible in preparing financial statements, starting from the lane balance sheet, income statement, to the periodic cash flow, where this cash flow provides relevant information regarding cash in and out of the company.
 
 Keywords: ​WBAOS, Financial Ratios and Book Closure.

Factors determining stock returns in property, real estate and construction companies in Indonesia

The main reason for investors or potential investors to invest in stocks is to derive maximum returns at minimum risk. One of the many factors determining stock returns from a company's shares consists of the company's financial ratios. The better the level of financial performance of the company, greater is the expectation of increase in its stock prices, and larger the benefit (return) from its shares to investors. The purpose of this study is to assess the impact of four factors, namely price-to-book value (PBV), the current ratio, debt-to-equity ratio (DER) and total assets turnover (TATO) on the level of stock returns in property, real estate and building construction firms listed in the Indonesian Stock Exchange for the period 2011-2014. The sample used in this study consisted of 18 companies, selected through the purposive sampling method. Regression analysis of panel data is the analytical tool used. The results have shown that TATO, DER and PBV influence the stock returns significantly.

Evaluating Financial and Operational Performance in the Retail Apparel Industry, 2016

This case is suitable for management students who have already been exposed to the basics of accounting and operations-management decision making. It builds business intuition that integrates concepts from the courses of operations, accounting, and finance. As such, it is appropriate in an operations course, or in an introductory finance/accounting course. Students examine the financial statements of four competitors in the global retail apparel industry and calculate the financial ratios that comprise the return on equity for each. Then, they critically evaluate the links between each company's financial ratios and its unique operations strategy and financial situation. As a result, students gain insight into the effects that strategic operations management and financial decisions can have on financial statements and important financial ratios, as well as the insights one can gain by examining the equivalent ratios of close competitors.This case begins with an overview of the market forces that have the greatest effect on the global retail apparel industry. A brief overview of the history of the industry and how it has developed since the 1980s is provided as a backdrop to illustrate the financial and operations-management decisions that have been made by the four companies profiled. Then, a high-level introduction is provided for each of four major competitors: The Gap, Inc.; HM Urban Outfitters, Inc.; and Industria de Diseno Textil, S.A. The short company profiles include a description of each company's portfolio of brands, overall positioning and operations strategy, outsourcing decisions, history, and financial situation. Finally, a series of exhibits provides income statement and balance sheet information for each company. Excerpt UVA-OM-1557 Rev. Jun. 15, 2017 Evaluating Financial and Operational Performance in the Retail Apparel Industry, 2016 Industry Background In 2016, 150 billion new clothing items were produced annually by companies in the global retail apparel industry. The estimated global value of the apparel industry was $ 1.8trillion. The industry was characterized by low switching costs, low barriers to entry, and a high degree of fragmentation and rivalry. The category included both department stores, which featured other goods in addition to apparel, and specialty retail stores that catered to specific customer segments. Both usually sold through multiple channels, including web-based and mobile platforms as well as brick-and-mortar stores, and sometimes also through outlet stores. The term “retail apparel” referred to clothing worn by women, men, girls, boys, toddlers, and infants; categories included activewear, career wear, formal occasion wear, and intimates. Most purchases were made by the individual consumer, who might be driven by convenience, value, quality, and/or a desire to display a certain social or economic standing. Sales were often seasonal, and varied by country. For example, in the United States, retail sales volumes often increased close to observed holidays, sporting events, and back-to-school time. . . .

Case Based Reasoning dan Similarity untuk Memprediksi Kondisi Keuangan Perusahaan

Financial report is on of the tools to help managing the companies. Financial report can give clear picture about how good executives manage the company. Financial ratio is the measurement to know how the company daily operation and help to analyze situation within the organizations. Case based reasoning is one of problem solving methods which use past data to help solve current or future problems. Nearest Neighbor is one of the method in Case based reasoning to test similarity within past data and tested data. In this research, Case based reasoning is tested and implemented to predict future financial reports. This research use sample data from public company which is listed in Indonesia Stock Exchange. Some financial ratios are used to help future company financial condition. This study found that Case based reasoning is one of the method to predict company financial ratio. With Case based reasoning , it gives a clear description to find appropriate and suitable case as a reference. Keywords— Case based reasoning , Financial Forecasting, Financial Time Series, Bursa Efek Indonesia

Analisis Rasio Keuangan Dalam Mengukur Kinerja PT. Adira Dinamika Multi Finance tbk

Abstract: Financial condition will reflect how the performance of the company . Assess the financial performance of the company's goal is to evaluate and improve the state perusahaannya.Untuk measure the financial performance of the company can use financial ratios such as liquidity , solvency , activity and profitability .The purpose of this study is : 1 ) To determine the performance of PT . Adira Multi Finance Tbk terms of liquidity ratios , 2 ) To determine the performance of PT . Adira Multi Finance Tbk terms of solvency ratios , 3 ) To determine the performance of PT . Adira Multi Finance Tbk in terms of the activity ratios and 4 ) To determine the performance of PT. Adira Multi Finance Tbk in terms of the profitability ratio.The analytical method used is the method of comparison is to compare the company's financial ratios with industry standard ratio norm. Based on the analysis of the data obtained it was concluded that : 1 ) The company's performance in terms of the last two year Quick Ratios, has decreased but is generally still above standard industry norms. Means the company still Ilikuit. 2 ) corporate performance in terms of the solvency ratio Debt to Equity Ratio in a state insolvabel, and in terms of Debt to Total Assets Ratio also insolvabel. 3 ) company performance in terms of the ratio of the activity under standard industry norm, so it is said company 's effective yet efficient in utilizing all its assets to finance consumer and 4 ) corporate performance in terms of profitability Economical ( ROA ) in the last two years decreased, although the first 2 years is still above the industry standard norm, while in terms of their own capital profitability ( ROE ) at 2 years terakir sharp decline and fall below the standard norm industi. Means the company has not been efficient and effective in generating income through all sources of funding available.
 Keywords: performance , liquidity , solvency , activity and profitability.

Capitalization of Operating Lease and Its Impact on Firm's Financial Ratios

This study aims to examine determinants of operating lease policies (i.e. financial constraint, asset value, growth, and firm's size), and the impact of constructive capitalisation of operating lease towards company's financial ratios. The finding shows that all determinants except financial constraints influence operating lease policies but most of operating leases is explained by factors other than the economic determinants. To restrict the abuse of operating lease that mislead users of financial statements, then operating lease should be capitalized. This study also finds that operating lease capitalization significantly impacts firm's financial ratios which are useful in decision making.

Innovative default prediction approach

This paper introduces a new scoring method for company default prediction. The method is based on a modified magic square (a spider diagram with four perpendicular axes) which is used to evaluate economic performance of a country. The evaluation is quantified by the area of a polygon, whose vertices are points lying on the axes. The axes represent economic indicators having significant importance for an economic performance evaluation. The proposed method deals with magic square limitations; e.g. an axis zero point not placed in the axes origins, and extends its usage for an arbitrary (higher than 3) number of variables. This approach is applied on corporations to evaluate their economic performance and identify the companies suspected to default. In general, a company score reflects their economic performance; it is calculated as a polygon area. The proposed method is based on the identification of the parameters (axes order, parameters weights and angles between axes) needed to achieve maximum possible model performance. The developed method uses company financial ratios from its financial statements (debt ratio, return on costs etc.) and the information about a company default or bankruptcy as primary input data. The method is based on obtaining a maximum value of the Gini (or Kolmogorov–Smirnov) index that reflects the quality of the ordering of companies according to their score values. Defaulted companies should have a lower score than non-defaulted companies. The number of parameter groups (axes order, parameters weights and angles between axes) can be reduced without a negative impact on the model performance. Historical data is used to set up model parameters for the prediction of possible future companies default. In addition, the methodology allows calculating the threshold value of the score to separate the companies that are suspicious to the default from other companies. A threshold value is also necessary for a model true positive rate and true negative rate calculations. Training and validation processes for the developed model were performed on two independent and disjunct datasets. The performance of the proposed method is comparable to other methods such as logistic regression and neural networks. One of the major advantages of the proposed method is a graphical interpretation of a company score in the form of a diagram enabling a simple illustration of individual factor contribution to the total score value.

PERFORMANCE RANKING OF TURKISH INSURANCE COMPANIES: THE ANP APPLICATION

Decision making concept can be defined as selection process choosing one of the options, if the outcomes are not certain. In practice it is not sufficient to evaluate the options according to the simplest form of decision making only based on a criterion. In such cases, we must consider all the variety of different information to decide to best option. It arise the requirement of multi-criteria decision making methods.AHP (Analytical Hierarch Process) is a technique that models the relations which are different stage. On the other hand that technique is insufficient to evaluate interdependency relations. The ANP (Analytic Network Process) has the ability to add all the criteria related with the issue. The method of the ANP can be described as follows. The Srst phase of the ANP is to compare the criteria in whole system to form the supermatrix. This is done through pairwise comparisons by asking experts. The Srst step of the ANP is to compare the importance between each criterion. The next step is to calculate the influence of the elements (criteria) in each component (matrix) using the eigenvalue method.In this research, financial performans ranking of Turkish Insurance companies, which large-scaled business in non-life branches, are obtained for the period 2006-2010 using financial ratios of companies and applying the ANP model which was developed with the superdecision software

Perbandingan Kinerja Keuangan Sebelum dan Sesudah Emisi Obligasi

This study aims to provide empirical evidence whether there are differences in the manufacturing company's financial performance before and after bond issuance as measured by the method of financial ratios. The hypothesis in this study is whether or not there is a difference in the company's financial performance before and after the bond issuance. The hypothesis was tested with different test Pired Sample Test through software SPSS.versi 17 with a confidence level of 9.5%. The sample used in this study is a manufacturing company that has gone public on the Indonesian Stock Exchange until December 31, 2013 and conduct bond emissions between the years 2001-2012. Observation period is three years before and three years after emission. Based on predetermined criteria then we obtain the final sample of 13 companies that do bond issuance. The results of testing the company's financial ratios for a period of three years before and three years after bond issuance showed significant value so it can be concluded there is no difference between the manufacturing company's financial performance before and after the bond issuance

Modelling the longitudinal properties of financial ratios

Previous studies provide conflicting evidence on the time series properties of company financial ratios, claiming either that the components of ratios exhibit nonstationarity which is not eliminated by the ratio transformation, or that a unit root in the components may be rejected which implies strong persistence in their ratio. In this article, a generalized model is derived that incorporates stochastic and deterministic trends and allows also for restricted and unrestricted proportionate growth in the ratio numerator and denominator. When the individual firm series are included in a panel analysis for large N and small T, this study is unable to reject convincingly a joint hypothesis of nonstationarity. However, the ratio variables are shown to be cointegrated, which can lead to stationarity in the ratio itself. Furthermore, evidence of cotrending provides support for a parsimonious model, where the financial ratio varies lognormally around its expected value.

Default Risk of the UK Real Estate Companies: Is There a Macro-economy Effect?

This paper empirically identifies the factors which are important in explaining default risk of the UK real estate companies over the past 20 years. We estimate a pooled probit model where the probability of failure is expressed as a function of both macroeconomic variables and company financial ratios. We find that the most important determinants of bankruptcy of the UK real estate companies are company liquidity, profitability and debt coverage as well as financial market volatility, interest rates, current account and the economic cycle. The latter provides evidence that the macro-economy crucially affects the probability of default of these companies.