Decline In Profitability Research Articles

Analisis Potensi Kebangkrutan: Perbandingan Model Altman dengan Zavgren

This study is aimed to compare two methods to determine the potential for bankruptcy of the company. The method used is the Altman (Z Score) and Zavgren (Logit Analysis) models. The Z Score model is a method to predict the financial difficulties, where the score value on the Altman Z Score classifies whether a company being bankrupt or not. Zavgren developed bankruptcy prediction model with Logit Analysis which divide bankruptcy classifications. The identification problem in this research are the decline in profits occurred from the end of 2016 until 2018, and the mismatch of the increase in profits to the increase the number of assets in the Cosmetics Company, through the use of secondary data from the Indonesia Stock Exchange of companies with code MRAT, KINO, TCID, dan MBTO. Thus, the financial state of cosmetics companies listed on the Indonesia Stock Exchange (BEI) during the 2016 to2018, according to the Altman Z Score model can be categorized into 2 criteria, they are: Gray Area; MBTO and Sound Area: MRAT, KINO and TCID. Meanwhile, based on the Zavgren model, MRAT, KINO, TCID and MBTO were declared as Sound.

Analisis Struktur Aset Dalam Mengukur Aktivitas Dan Profitabilitas Perusahaan

This study aims to determine the analysis of asset structure in measuring the activity and profitability of the household appliances sub sector listed on the IDX. This study uses descriptive quantitative method, secondary data in the form of financial statements of household appliances sub-sector 2015 to 2017. The analysis used is horizontal analysis to measure asset structure, accounts receivable turnover (RTO), inventory turnover (ITO), working capital turnover ( WCTO), fixed asset turnover (FATO), total asset turnover (TATO), asset return (ROA) and using industry standard averages. The results showed that for three periods PT. Integra Indocabinet Tbk has increased its assets and profits. Whereas PT. Chitose Internasional Tbk and PT. Kedaung Indah Can Tbk experienced a fluctuation in assets, and an increase in profit. PT. Langgeng Makmur Industri Tbk experienced a decline in assets and profits. Conclusion, the company that is said to be good is a company that exceeds the industry average. While companies with low values ​​are due to the value obtained does not always exceed the average industry standard.
 Keywords: Activity, Asset Structure, and Company Profitability

Analisis Pengaruh Profitabilitas, Leverage dan Dividend Payout Ratio Terhadap Akrual Diskresioner dan Perataan Laba dengan Kepemilikan Manajerial Sebagai Faktor Pemoderasi

The purpose of this study is to examine whether the profitability, leverage and dividend payout ratio affect the quality of corporate profits or earnings. Manufacturing companies listed in the Indonesia Stock Exchange are tested on their quality of earnings for years 2008-2012 using the proxy for discretionary accruals and income smoothing. In addition to testing the effects, this paper is also aimed in testing the existence of managerial stock ownership as a moderating factor. The results showed that through the use of debt and dividend payout ratio, the profitability of a company is significantly influenced by the quality of its earnings. The decline in profitability and the use of leverage and distribution of dividends affect the discretionary accruals of the company. However, only the dividend distribution triggers the income smoothing. The existence of managerial ownership as moderating factors can weaken the relationship between profitability, leverage and dividend payout ratio on earnings quality. It is seen from the declining significance level of leverage that is proxied by the debt-to-equity ratio, and dividend payout ratio on discretionary accruals, as well as profitability that is proxied by return on assets, and dividend payout ratio on income smoothing.

Secured data management using face detection and Video mode

Data security is protecting digital data, from the unwanted actions of unauthorized users, like cyberattack or data breach. Data is no longer said to be secure if it falls into the hands of hackers or those that would misuse it. Data is well secured and guarded within an organization. But, when its employees sell their access specifiers to their competitors, data is no longer protected. This could be avoided by advanced technology. The Identity-based approach is an approach to regulate access to a digital product or service based on the identity of an individual. This allows organizations to grant access to a variety of digital services using the same credentials, ensuring the accurate match between what users are entitled to and what they really receive, while also permitting other access constraints like company, device, location and application type(attributes) In our application, data is uploaded by an encryption format attached with the video mode and it is downloadable by the user only through the unique face detection mode. When a user tries to download the encrypted file, a notification is sent to four admins for better privacy reasons. Only upon acceptance from four of these admins, the file could be downloaded. The admins can authenticate the user using his face captured through face detection. This could be used at any level in an organization but is much efficient when no of users trying to access a file is limited. This provides high security and rejects unauthorized users. Breach of data leads to a decline in profits and incline in losses. This could be reduced if the data security could be ensured using face detection of a person who is trying to access the data.

Analysis of Financial Ratio on Profitability Level (Return on Equity) in PT. Bank Muamalat Indonesia TBK

Profitability Ratio is a ratio to measure the level of profit obtained by a company. One of the Islamic banks in Indonesia since 1992, namely Bank Muamalat Indonesia (BMI). Based on financial report data for 2014-2016, BMI experienced a decline in assets, causing a decline in profitability at the bank. Therefore, BMI issued new shares through HMTD (Pre-emptive Rights) to obtain fresh funds in order to meet the shortage of liquidity that had occurred to BMIs for the past 4 years. So this study was conducted to determine what factors affect the level of profitability in BMI since the last 4 years with indicators of assessment, among others: CAR (Capital Adequate Ratio), FDR (Financing Deposit Ratio), NPF (Non Performing Financing), and BOPO (Cost Operations on Operating Income). Based on the results of the analysis in this study, it was found that the indicators that affect the profitability of BMI are Capital Adapty Ratio and Operational Costs to Operating Income with a significance value of 0.012 smaller than 0.05, H1 is accepted and CAR to ROE has a significant effect and a significance value of 0.005 smaller than 0.05 then H4 is accepted and BOPO of ROE has a significant effect.

Limited Impact of Business Development Programs on Profitability in the Presence of Ambiguity Aversion

This paper develops a theoretical framework to explain the limited effect of business development programs (BDPs) on entrepreneurs’ profits. We argue that a mismatch between a BDP’s narrow focus on business-promoting strategies and the wider context in which microentrepreneurs operate can limit the impact of business training. In our framework, entrepreneurs are ambiguity averse and have multiple sources of income (e.g., business and wage incomes). We show that for a sufficiently ambiguity-averse entrepreneur with multiple income sources, efficient training can result in a decline in expected profit. Notably, when the wider context (multiple income sources, ambiguity aversion) is considered, the business training impact is limited and can result in a posttraining expected profit decline. This limited impact is caused by the diversifying role that the business income plays in household finances.

Government Employment Guarantee, Labor Supply, and Firms’ Reaction: Evidence from the Largest Public Workfare Program in the World

AbstractUsing establishment-level data, we examine the impact of the Indian government’s employment guarantee program on labor and firm behavior. We exploit the staggered implementation of the program for identification and find that the program led to a 10% reduction in the permanent workforce in firms. Firms responded to the adverse labor-supply shock by resorting to increased mechanization. This significantly increased the firms’ cost of production, leading to a decline in net profits and productivity. These effects manifested primarily in firms paying low wages, firms having low labor productivity and greater sales volatility, and firms located in states with pro-employer labor regulations.

Bankruptcy Prediction Analysis Using the Altman Z-Score Method at PT Aneka Tambang (Persero) Tbk

This study aims to determine the prediction of bankruptcy in Aneka Tambang (Persero) Tbk for the period 2011 to 2018. Z-score is the independent variable (X) measuring by five ratios: working capital to total assets, retained earnings to total assets, earnings before interest and tax to total assets, the market value of equity to total liabilities, and sales to total assets. The background of this research is the government's ban on the export of raw minerals, which resulted in Aneka Tambang (Persero) Tbk no longer making overseas sales of nickel ore, which made the company's profit decline. This research method uses descriptive research with a quantitative approach, the source of the data used is secondary data based on financial reports published on the Indonesia Stock Exchange and the official website www.antam.com. The population used is the financial statement data for ten years, namely from 2009 to 2018, while the sample using for eight years, namely from 2011 to 2018. The data collection technique carried out using documentation and literature study techniques. Data analysis techniques were carried out by discriminant analysis using the Altman Z-Score method and one sample t-test analysis. The Altman Z-Score uses five variables that represent liquidity ratios X1, profitability ratios X2 and X3, and activity ratios X4, and X5. The formula Z-Score Z = 0.717 X1 + 0.847 X2 + 3.107 X3 + 0.420 X4 + 0.998 X5. With criteria, Z> 2.99 categorized as a good company. Z between 1.23 to 2.99 categorized as a company in the grey area or area of ​​financial difficulty. Z <1.23 is categorized as a potentially bankrupt company.

ANALISIS RASIO LIKUIDITAS, SOLVABILITAS, DAN RENTABILITAS DALAM LAPORAN KEUANGAN PERUSAHAAN

The purpose of this study is to analyze the company's financial performance with a case study at PT. Marina Berto Tbk. The period 2012 to 2015. The research method used is a descriptive causality method, which describes the company's financial performance in terms of liquidity ratios, solvency ratios and profitability ratios compared to the average ratios of similar industry companies. The results showed that in general the financial performance of PT. Marina berto Tbk is below the industry average, which means it's not good. Although when viewed from the current ratio, quick ratio, total assets to debt ratio is still relatively safe to finance debt and operations, but due to a decline in profits in 2014 and 2015 because the company's cash ratio is below standard. And in terms of corporate profitability ratios that year experienced difficulties in generating profits because the company's concentration on increasing the quantity of production and development in manufacturing, then the financial performance was getting worse.

Comparative advantages of regional versus national banks in alleviating SME's financial constraints

This paper provides new evidence on the impact of local banking market structure on SME's access to credit and emphasize the comparative advantages of regional versus national banks in alleviating SME's financial constraints. Matching a unique dataset on bank branch-level and firm-level information for a sample of 33,165 French manufacturing firms over the 2005–2013 period, we rely on two alternative indicators to capture different dimensions of SMEs financial constraints and find significant differences in the drivers of these constraints. While higher market share of regional banks or stronger presence of geographically-focused banks helps to alleviate SMEs' short-term credit constraint, higher market share of national banks or stronger presence of geographically-diversified banks is beneficial to reduce SMEs investment cash-flow sensitivity. Moreover, in both cases, SMEs' financial constraints are strengthened in functionally-distant markets. In addition, during crisis times, the benefits of relationship banking on short-term credit constraint remain and, in some cases, are reinforced. We also find that these benefits differ according to SMEs pre-crisis financial health. Regional banks facilitate access to short term credit for firms which were more profitable before the global financial crisis and particularly those who experienced a sharp decline in profitability in troubled times, supporting the hypothesis of continuation lending by relationship banks during economic downturns.

Data driven supply allocation to individual customers considering forecast bias

We propose a data-driven allocation planning approach, which is designed for use in advanced planning systems as they are widely used in industrial environments. The approach exploits increasingly available data on individual customers and products by allocating supply on a highly granular level at high planning frequencies. It counteracts rationing gaming by customers, which we assume to be the reason for demand forecast biases.We create an incentive for truthful forecasting by not only allocating supply based on customer profitability but also based on forecast bias. In the long term, this approach gives access to a profit potential and an on-time service level increase. In the short term, however, setting such an incentive does not only have a positive impact on service levels but also leads to a decline in profits. Our methodology quantifies this trade off providing decision support for determining the extent to which the forecast bias should affect the allocation.In a numerical study based on the semiconductor industry, we demonstrate that the approach has a large long-term profit potential while having limited effect on short-term profits for significant service level incentives. The analysis further shows that the allocation efficiency increases with the granularity level and the predictive quality of the available data.

The Influence of Intellectual Capital on the Profitability of Banking Companies

This research is motivated by a decrease in profitability in several companies over the last few years. The purpose of this study is to determine the effect of intellectual capital on the decline in profitability of banking companies over the past few years. This study has two types of variables consisting of dependent variables namely intellectual capital whose indicators are (VACA, VAHU, and STVA), while the independent variable is profitability whose indicators are represented by (ROE) in the 2013-2017 period. The results of this study indicate simultaneously VACA, VAHU, and STVA have an influence on company ROE. Partially VACA, and STVA have a significant influence on company ROE. Whereas VAHU has a negative influence on company ROE. 29.3% of all variables in this research model namely VACA, VAHU, and STVA have a contribution to affect profitability (ROE)

PENGARUH CURRENT RATIO, DEBT TO EQUITY RATIO, TOTAL ASSET TURNOVER DAN KEBIJAKAN MANAJERIAL TERHADAP PERTUMBUHAN LABA

Earnings growth is an increase in profit or decline in profit per year and can be used to assess how the development of a company's performance. The purpose of this study is to examine and analyze the effect of current ratio, debt to equity ratio, total asset turnover and managerial ownership on earnings growth. The population in this study is the banking sub-sector companies listed on the Indonesia Stock Exchange for the period of 2016-2018. The sampling technique in this study used a purposive sampling method and obtained a sample of 20 companies. The data analysis method uses the classic assumption test and multiple linear regression analysis using SPSS 20, with the results of data analysis showing that, debt to equity ratio and managerial ownership influence earnings growth. While the current ratio and total asset turnover has no effect on profit growth. Keywords : Profit Growth, Current Ratio, Debt to Equity Ratio, Total Aset Turnover, Managerial Ownership

Trend and determinants of non-performing assets in India

Indian banking sector has played a seminal role in supporting economic growth in India. Recently, Indian banks are experiencing consistent increase in non-performing assets (NPA). The financial strength of any bank depends upon the performance of its own assets. The degradation in the assets quality results in accretion of non-performing assets. The public sector banks in India have started to show decline in profits and even losses in their financial results because of piling up of bad assets and the performance of any bank’s loans depends upon the progress of the operating economy. The private banks work for profit with high priority. The foreign banks do limited business like credit card facilities. Bank specific parameters are unique for each bank, whereas the macro parameters are common for all the banks. Keywords: Non-performing assets, Bad assets, Macro parameters, Trend.

The Accuracy of The Springate and Zmijewski in Predicting Financial Distress in Cosmetic and Household Subsector Companies

Bankruptcy begins with a condition of financial distress. The purpose of this study was to test and analyze the accuracy of financial distress predictions in Cosmetic and Household Subsector Companies listing on the Indonesia Stock Exchange use two models: the Springate (S-Score) model and Zmijweski model. The population in this study are companies in the Cosmetic and Household Subsector Companies listing on the Indonesia Stock Exchange which publishes audited financial statements for fiscal year 2010-2017, which amounted to 5 companies: Martina, MRAT, TCID, UNLV, and ADES. Data analysis technique used is descriptive qualitative analysis using Springate score and Zmijewski score. Model Springate with valuation criteria S> 0.862 classified as healthy company, while Zmijewski sets the criteria, if the firm's score is less than 0 (X <0), then the company goes into nonfinancial distress (healthy). From the analysis of financial distress used the S-Score Springate model on Cosmetic and Household Subsector Companies in 2010-2017, companies experiencing distress condition of 21.57%. From the second model used a Zmijweski model, the entire enterprise in good condition. Thus, the accurate prediction method for Cosmetic and Household Subsector Companies registered in Indonesia is the Zmijweski models. The issue of effectiveness in carrying out the company's operational activities must be payed attention both from sales activities, purchases and other activities, so that reduce the decline in corporate profits. However, based on the overall average value the five companies showed healthy conditions.

Економічні аспекти виробництва і споживання гречки в Україні

Економічні аспекти виробництва і споживання гречки в Україні

Farmland marginalization and its drivers in mountainous areas of China

The marginalization phenomenon characterized by devaluation and abandonment of farmland began to appear in mountainous areas. The purpose of this study was to reveal the extent of farmland marginalization and its drivers, and a two-stage tracking survey involving 7045 plots from 1012 households from the southwest mountainous areas of China in 2011 and 2018 by employing a variety of metrics and binary Logit model. The results showed that the average profit and rent of cultivated land per mu (1 mu = 666.67 m2) presented a significant downward trend in study areas. With the continuous decline of farmland profit, the utilization of land has undergone a significant transformation, such as the transformation of crops from labour-intensive to machine-intensive. The ratio of plots transferred out with free rent increased from 3/5 to 4/5 and the rate of abandonment increased from 21.6% to 27.2% during the study period. Farmland marginalization characterized by land devaluation and abandonment is intensifying in mountainous areas of China in recent years. Plot levels such as distance from the residence, damaged by wild boar, low plot quality and labour famine are the key factors of farmland marginalization such as abandonment, while the rising cost of farming is the root cause. The driver of marginalization was that urbanization increased labour cost, farming profits declined until they became losses, and the farmland was finally abandoned. Nowadays, farmland marginalization is not an unique phenomenon in mountain areas of China and it is more common all over the world. The government should stop large-scale farmland reclamation projects in mountainous areas of China and we can compensate for the loss of farmland by improving the quality and utilization efficiency of the remaining farmland.

THEORETICAL AND METHODOLOGICAL RECOMMENDATIONS TO THE ORGANIZATION AND MANAGEMENT OF ENTERPRISE FINANCIAL SECURITY SYSTEM

Вступ. Зростання зацікавленості науковців до дослідження питань фінансової безпеки суб’єктів господарювання спричинено багатьма факторами, серед яких зростання кількості збанкрутілих підприємств, зниження рівня прибутковості та рентабельності фірм, їх подальша ліквідація. Ураховуючи вищесказане, варто зазначити, що вітчизняні підприємства досить рідко впроваджують у свій управлінський механізм цей інструмент, оскільки тематика фінансової безпеки є досить складною, а практичного досвіду з імплементації її системи зовсім мало. Мета. Саме тому метою нашого дослідження є доведення необхідності впровадження та використання системи фінансової безпеки для забезпечення зростання фінансової стабільності суб’єкта господарювання, його ефективності та прибутковості. У цьому контексті актуальною видається розробка теоретико-методологічних рекомендацій щодо організації та управління системою фінансової безпеки. Результати. До результатів нашого наукового дослідження варто віднести вдосконалення поняття «система фінансової безпеки» на основі аналізу доробку вітчизняних та закордонних фахівців. Також у роботі опрацьовано підходи різних науковців до особливостей організації та управління системою фінансовою безпекою економічного агента. На основі її аналізу запропоновано підхід, що ґрунтується на побудові комплексної організаційної моделі впровадження системи фінансової безпеки в господарський механізм суб’єкта господарювання. Вона ґрунтується на використанні знань проектного менеджменту та основ проектного фінансування та полягає в структуризації робіт та відповідальних осіб за їх виконання. З цією метою будується ієрархічна структура за функціональним видом робіт, організаційна структура робіт за суб’єктами, які здійснюють виконання, та матриця відповідальності з поєднанням результатів перших двох схематичних зображень. Далі створюється мережевий графік із зазначенням часових проміжків дії та необхідного строку виконання певних задач і робіт. Відтак, пропонується об’єднати отримані результати структурних об’єктів для побудови процесно-організаційної моделі процесу імплементації системи фінансової безпеки в господарський механізм підприємства.

ANALISIS RASIO KEUANGAN DAN COMMON SIZE UNTUK MENILAI KINERJA KEUANGAN PERUSAHAAN KOSMETIK DAN PERALATAN RUMAH TANGGA YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2013-2015

ABSTRACTFrom the Common Size report on the financial position of PT. Akasha Wira Internasional, Tbk. PT. Mandom Indonesia, Tbk. PT. Martina Berto, Tbk. PT. Mustika Ratu, Tbk. And PT. Unilever Indonesia, Tbk can be seen that the average total current assets owned by PT. Martina Berto Tbk of 72.5% is the highest compared to the others. But in the highest average fixed assets owned by PT. Unilever Indonesia Tb 56.5% compared to other cosmetics companies. Then for the highest average current debt owned by the company PT. Unilever Indonesia Tbk by 63.2% compared to other cosmetics companies, on the contrary the highest average long-term debt owned by the company PT. Akhasa Wira International Tbk is 15.0% compared to other cosmetics companies. From the Common Size profit and loss table of PT. Akasha Wira Internasional, Tbk. PT. Mandom Indonesia, Tbk. PT. Martina Berto, Tbk. PT. Mustika Ratu, Tbk. And PT. Unilever Indonesia, Tbk can be seen that the average cost of goods sold by the company PT. Mandom Indonesia Tbk is the highest average compared to other cosmetics companies which is 62%, which means PT. Mandom Indonesia Tbk has an unfavorable profit rate because if the cost of goods sold is higher it will have an impact on profit decline, conversely if the cost of goods sold is low it will increase the company's profit. Similarly, the average gross profit owned by PT. Mustika Ratu Tbk has the highest average compared to other cosmetics companies, which is 57%. And for the highest average net profit owned by PT. Unilever Indonesia Tbk is compared to other cosmetics companies, which is 17%, which means the company is able to perform well so as to produce an increase in profits.Keywords: Financial Ratios, Common Size and Financial Performance

Valuing Private Equity Strip by Strip

We propose a new valuation method for private equity investments. It first constructs a cash-flow replicating portfolio using cash-flows on various listed equity and fixed income instruments (strips). It then values the listed strips using a flexible asset pricing model that accurately captures the systematic risk in bonds of different maturities and a broad cross-section of equity factors. The method delivers a risk-adjusted profit on each PE investment and a time series for the expected return on each PE fund category. It avoids using realized discount rates and has good small-sample properties. We apply the method to the universe of PE funds. Under our more comprehensive risk model, we find negative risk-adjusted profits for the average fund in most PE categories. Substantial cross-sectional variation and persistence in performance suggests some funds outperform. Expected returns and risk-adjusted profit decline in the later part of the sample.