Financial Analysis Techniques Research Articles

THE IMPACT OF FINANCIAL STATEMENT ANALYSIS ON THE PROFITABILITY ASSESSMENT (APPLIED STUDY OF KIRKUK COMPANY FOR PRODUCING CONSTRUCTIONAL MATERIALS)

The present study entitled “financial statement analysis and assessing the profitability of the Kirkuk’s Company for producing constructional materials”. The main goal of the accounting department in the firms is to prepare the reliable financial statements in order to make their valid balance sheets, income statements and cash flow statement. This paper determines the confirming effects of the financial statement analysis to assess the profitability of the Kirkuk Company. The data in this study is based on the secondary data and it collected from the past and present performance of Kirkuk’s Company for producing constructional materials. To achieve the research goal, four categories of the financial ratios were utilized for testing the study’s hypothesis. This group of ratios was applied to assess the financial situation of the company in the years between “2005 to 2011” by using different techniques of financial statement analysis. The results clearly show that, there are insignificant relationships between profitability with asset regulated and assets utilization. At the same times, there is a weak relationship between profitability and liquidity.

Diamond Foods, Inc.: A Comprehensive Case in Financial Analysis and Valuation

ABSTRACTThis real-world comprehensive case provides an experiential assignment to bring alive most major topics addressed in the financial statement analysis and valuation course. By demonstrating the interconnections between different topics, the case also serves as an integrative assignment to develop a holistic understanding of the course. The case presents a platform to develop students' critical-thinking and problem-solving skills. By requiring them to apply the frameworks of strategy and industry analysis, techniques of accounting and financial analysis, and by placing them in the role of a financial analyst, the case develops an understanding of the challenges involved in financial analysis and valuation in a real-world context. The case helps students to experience the power of using financial statements and other publicly available information to derive insights into firm valuation and to appreciate the role of accruals-based and real earnings management in stock valuation.

ANALISIS PENDAPATAN DAN BIAYA RELEVAN PADA PERALIHAN BISNIS OFFLINE TOONLINE (STUDI KASUS PADA TOKO FASHION HPROJECT)

<p><em>The development of technology and the increasing use of Internet network in the society today has an impact on consumer behavior. Businesses that used to be conventional or offline are now turning to online business, which makes it easier for consumers to be able to conduct business transactions without any limitations of space and time. This study aims to determine the increase in operating income with offline switch to online with the analysis of revenue and relevant costs. This research is descriptive qualitative research. The subject of the research is the Hproject Store. The data used are primary data and secondary data. Data collection techniques with offline store observations and online stores, interviews with owners and employees and documentation of the accounting records. Based on the results of research indicated that switching offline business to online can increase operating profit based on revenue analysis and cost relevant for tactical decision making. The contribution of this research is able to indicate that one of technique in increasing profit is by utilizing technology and network in doing business. In addition, this study can provide consideration of financial analysis techniques before tactical decision making on business techniques.</em></p><p><em> </em></p><p><strong><em>Keywords</em></strong><strong><em>: offline, online, tactical decisions</em></strong></p>

Estimating economic and environmental trade-offs of managing nitrogen in Australian sugarcane systems taking agronomic risk into account

Use of chemical agricultural inputs such as nitrogen fertilisers (N) in agricultural production can cause diffuse source pollution thereby degrading the health of coastal and marine ecosystems in coastal river catchments. Previous reviewed economic assessments of N management in agricultural production seldom consider broader environmental impacts and uncertain climatic and economic conditions. This paper presents an economic risk framework for assessing economic and environmental trade-offs of N management strategies taking into account variable climatic and economic conditions. The framework is underpinned by a modelling platform that integrates Agricultural Production System sIMulation modelling (APSIM), probability theory, Monte Carlo simulation, and financial risk analysis techniques. We applied the framework to a case study in Tully, a coastal catchment in north-eastern Australia with a well-documented N pollution problem. Our results show that switching from managing N to maximise private net returns to maximising social net returns could reduce expected private net returns by $99 ha−1, but yield additional environmental benefits equal to $191 ha−1. Further, switching from managing N to maximise private returns in years with the highest profit potential (hereafter, good years) to maximising mean social net returns could reduce expected private profits in good years by $277 ha−1, but yield additional environmental benefits equal to $287 ha−1. We contend that it is essential to incorporate farmer risk behaviour and environmental impacts in analyses that inform policies aimed at enhancing adoption of management activities for mitigating deterioration of the health of coastal and marine ecosystems due to diffuse source pollution from agricultural production.

The Possibility of using Financial Analysis in Government Units under the GFS System

The study addressed the possibility of using financial analysis in governmental units in a system of government finance statistics. The problem stems from the study of privacy the Government activities and the impact on performance measurement and evaluation process, and expressing the problem study key question: can I use financial analysis tools and techniques to develop financial indicators of government financial statements so that they can be relied upon as quantitative indicators? And the embranchment that many questions. Research is important in that it covers aside his researchers rarely addressed is using financial analysis as a tool for assessing government performance. In order to achieve the objectives of the study were using inductive and deductive reasoning based curricula as. Literature was also addressed government finance statistics system. Int adopted some financial statements are available from the Ministry of finance and national economy of the Republic of Sudan for several periods, and it is a financial analysis drawing on IMF guidelines regarding financial statements presentation. Int reached many conclusions: there is the possibility to apply the methods of financial analysis in the government units that adoption governmental finance statistics system. Financial analysis contributes to devise financial indicators contribute to taking fiscal policy decisions regarding lending and borrowing. Government financial statements financial analysis provides indicators to measure the operational and financial efficiency of the unit.

USAGE OF DATA MINING FOR EVALUATION OF BORSA İSTANBUL REGISTERED COMPANIES FINANCIAL STRUCTURE

Objective- Financial analysis are mostly done for evaluation of companies’ financing and investment needs with traditional analysis methods such as vertical analysis, horizontal analysis and ratio analysis. Although these traditional methods support the analyst for single company evaluation, they are inefficient while questioning many companies. Therefore, decision makers face time-consuming problem when they evaluate hundreds of companies, which are necessary for profit maximization, cash flow maximization and risk mitigation etc. It is aimed to define a new tool for financial analysis in this study. Methodology- BIST Manufacturing Sector registered 190 companies for year 2015 and 173 companies for year 2016 are analyzed. Some liquidity ratios, fiscal ratios, operational ratios and profitability ratios are calculated and outlier companies are decided. Data Mining is the one of the most important data processing tool. It can be used for clustering the data, classification the data and defining variables that have similar behaviors. It is tried to define a new financial analysis technique with combination of ratio analysis and data mining. In this study, outlier detection and some clustering algorithms are applied on BIST Manufacturing Sector registered companies. Findings- BIST Manufacturing Sector registered 121 of 190 companies for year 2015 and 127 of 173 companies for year 2016 are decided as outlier companies. These outlier companies might be evaluated for sectorel researches or fraud detection etc. Companies are divided two clusters with and without outlier companies for year 2015. In addition, companies are divided four clusters with outlier companies and two clusters without outlier companies for year 2016. Differences between the number of clusters and cluster characteristics are related to economical conditions. Conclusion- In conclusion, Data Mining Techniques can be used as financial analysis method, especially when we need to analyze many companies’ financial situation at the same time. It is considered that sector characteristics, global and local developments would indicate meaningful correlations with outlier companies. Besides that, it is determined that universal thresholds values for financial ratios (e.g. current ratio 2) are different for our country. These values are calculated for our country and evaluated with sectorel, global and local factors.

Behavioral finance and games: simulations in the academic environment

ABSTRACT The contribution from this study lies in its reflection on the factors that influence market efficiency, which requires a multidisciplinary view to analyze the intervening factors that impact results of the financial system. It also contributes by reflecting on the need for new approaches for training professionals who will go on to work in financial and related areas and preparing them by using different financial analysis techniques; by reflecting on the fact that analytical practices are influenced by social, cognitive, and emotional aspects, enabling the students to be better prepared to act in the financial market; by presenting various technical possibilities and providing more comprehensive knowledge to choose the one that best suits the object of analysis and their preferences; and by reflecting on different ways of perceiving investment opportunities and risk, which can be expanded on in other studies on the segmentation of clients according to their preferences in the investor market. The aim of this study was to analyze how social and psychological aspects influenced the decisions involved in simulated trading operations. The relevance lies in its discussion of the philosophical and epistemological position in finance, which suffers from a vision that only focuses on the rationality of means and does not explain the anomalies verified in the financial market. The study originated from the application of a company game simulating the work of stock market trading desk operators, applied in the Stock Market Operations course and using fundamental, technical, and graphical techniques. The population was intentional and made up of undergraduate and graduate students from one of the four best Brazilian federal universities. The data analysis was performed by analyzing the content of the questionnaires applied and the journal entries made during participant observation.

Technical Analysis of Climate Time Series Data

The application of chart pattern, or technical, analysis to climate time series was updated and extended on the previous working paper using up-to-date data. The full time span of the global average temperature anomalies (HadCRUT4) was examined for chart patterns. An alternating sequence of rising wedges and consolidation periods was revealed. Their details were evaluated to compare with as well as to supplement financial technical analysis. Chart pattern features in the climate time series matched those reported for the same pattern (rising wedge) in US stock price time series quite well. A tentative prediction arrived at a consolidation period that may last for roughly the next four decades. The results further support the idea of technical analysis as a tool to analyse time series data of high-dimensional complex systems in general. In addition, research on chart pattern reproducing differential equations is encouraged to globally describe the climate system.

Technical Financial Analysis Tools for Stata

In this article, we provide four financial technical analysis tools: moving averages, Bollinger bands, moving-average convergence divergence, and the relative strength index. The tftools command is used with four subcommands, each referring to a technical analysis tool: bollingerbands, macd, movingaverage, and rsi. We provide examples for each tool. tftools allows researchers to backtest their own investment strategies and will be of interest to investors, researchers, and students of finance.

Republication: Financial analysis techniques in clinical practice: From “Micro” to “Macro”

Improved methods of clinical data collection, storage, and processing are changing the way critical care practitioners examine and utilize the wealth of patient-related information available in the modern Intensive Care Unit (ICU). The author of this report previously outlined general methods and principles of a proposed new biomedical parameter analysis system based on well-established financial analysis (FA) methods. The new system helps to define, confirm, and potentially predict trends, and trend reversals in a number of traditional biomedical variables (vital signs, laboratory parameters, various catheter-derived pressure measurements, oximetry, temperature, and input/output variables). To examine the behavior of FA parameters and indicators across different temporal scales (i.e., minutes, hours, days, weeks), the author analyzed trends in various biomedical parameters using different time scales and a standardized set of FA techniques, including: (1) the stochastic oscillator, (2) the relative strength index (RSI) tool, (3) moving average, (4) moving average convergence-divergence, and (5) price envelope analysis. Randomly chosen and anonymized laboratory, urinary output, hemodynamic, and intracranial pressure datasets of patients who spent at least 21 days in the ICU were retrospectively examined. Variables were entered into specialized FA software (MetaStock, Equis International, Salt Lake City, Utah, USA) and subjected to computerized processing methods. Analyses of the above clinical parameters demonstrate that laboratory, input/output, oximetry, and transduced pressure-based data can be successfully “trended” using simple FA techniques. The data were easy to examine when displayed in FA fashion. In addition, some trends that were not easily apparent on the examination of raw numeric data or basic non-FA graphs became more apparent after the application of FA methods. These findings suggest that biomedical parameters can be subjected to the same manipulations as financial market data. In addition, FA tools appear to provide the interpreting physician with means to examine biomedical parameters across different temporal scales and resolutions (from minutes to weeks per each measurement epoch). In fact, biomedical parameters tend to display similar trends regardless of whether the data are collected on the scale of minutes, hours, days, weeks, or months. The following core competencies are addressed in this article: Medical knowledge, Patient Care, Practice based learning and improvement, Systems based practice. Republished with permission from: Stawicki SP. Financial analysis techniques in clinical practice: From 'micro' to 'macro'. OPUS 12 Scientist 2008;2(3):3-9.

The Role of Financial Analysis Tools in Granting Loans. Field Study on Banks Operating within Aqaba Special Economic Zone)

This study aimed to demonstrate the role of financial analysis tools in making decisions of granting loans to the clients in Jordanian commercial and Islamic banks operating in Aqaba Special Economic Zone. The study concluded that the bank credit departments at these banks rely on the tools and techniques of financial analysis when receiving customer requests and sorting it for the granting of credit. However, the role of the bank credit departments at these banks is not enabled as required and is dominated by marketing nature more than credit standing, where its role is limited to promoting banking services through receiving client requests, sorting and sending them to main centers concerned with making granting loans decision. The study has recommended the necessity of activating the role of these sections as well as developing the staff skills of those sections to use financial analysis tools and giving credit departments at banks operating within Aqaba Special Economic Zone the necessary authorities to make decisions to grant customers credit through the application of financial analysis methods. Moreover it is necessary to stimulate and encourage the credit department's staff in these banks by giving them bonuses and rewarding their dedication and their honesty, which will enhance the mutual trust between departments' staff and the managers in these banks.

Republication: Application of financial analysis techniques to vital sign data – A novel method of trend interpretation in the Intensive Care Unit

Modern critical care medicine is based on flow of information. This information requires significant amount of interpretation to become clinically valuable. Despite the wealth of data in the modern Intensive Care Units (ICUs), intensivists often rely on fragmentary information. In an attempt to improve data trending utilization, application of financial analysis (FA) methods to vital sign data samples was examined. Two randomly chosen vital sign datasets of patients who spent at least 30 days in the ICU were retrospectively reviewed. Hourly vital sign data were retrieved and recorded for each patient. Variables tracked included systolic blood pressure for patient #1 and heart rate for patient #2. These variables were then entered into specialized FA software and subjected to computer-based processing. Trends in the recorded data were examined using (1) the stochastic oscillator (SO), (2) the moving average (MAV) convergence-divergence tool, (3) price envelope analysis and (4) MAV analysis. Both blood pressure and heart rate analyses demonstrated that vital sign data could be successfully trended using FA techniques. Not only was the vital sign data easy to read and interpret when formatted in financial-like fashion, but some trends that were not apparent on gross inspection of the numeric data were clearly demonstrated on FA. Much like with financial patterns, trends noted within vital sign data appeared to be more significant when more than one indicator identified them, utilizing the concept of a confirmatory variable. Vital sign data, much like financial data, were subject to trend reversals. Such reversals in vital sign data appeared to follow rules similar to those followed by financial vehicles and markets. This report demonstrates that vital sign data can be subjected to the same manipulations as financial market data. Furthermore, FA tools appear to provide the interpreter of the data with means to define, confirm, and possibly predict trends and trend reversals.The following core competencies are addressed in this article: Medical knowledge, Practice-based learning and improvement, Systems-based practice.Republished with permission from: Stawicki SP. Application of financial analysis techniques to vital sign data – A novel method of trend interpretation in the Intensive Care Unit. OPUS 12 Scientist 2007;1(1):14-16.

Republication: Application of financial analysis techniques to clinical laboratory data – A novel method of trend interpretation in the Intensive Care Unit

Modern critical care medicine depends on constant flow of massive amounts of information. This information has limited usefulness unless it is appropriately gathered, stored, displayed, and interpreted. Despite such wealth of data in the modern Intensive Care Units (ICUs), intensivists often rely on very fragmentary “snapshot” information to make important clinical decisions. In an attempt to improve the understanding of clinical data trends, application of financial analysis (FA) methods to clinical laboratory data samples were performed. Three randomly chosen, anonymized laboratory datasets of patients who spent at least 30 days in the ICU were retrospectively examined. Regularly obtained laboratory values were retrieved and recorded for each patient. Variables examined included white blood cell count, hemoglobin level, platelet count, and blood glucose levels. These variables were then entered into specialized FA software and subjected to computer-based processing. Trends in the recorded data were examined using (1) the stochastic oscillator, (2) the Relative Strength Index tool, (3) price envelope analysis, and (4) moving average analysis. All clinical laboratory parameter analyses demonstrated that laboratory data could be successfully “trended” using FA techniques. Not only were the laboratory data clearly readable and transparent when displayed in FA fashion but also some trends that were not apparent on “gross” inspection of the numeric data became very apparent after FA. Much like with financial patterns and vital sign data, trends noted within laboratory parameters appeared to be more significant when more than one indicator identified or “confirmed” them, utilizing the concept of a confirmatory variable. Laboratory data, much like financial and vital sign data, were subject to trend reversals. Such reversals in laboratory parameters appeared to follow patterns similar to those followed by financial vehicles and markets. This report demonstrates that laboratory data can be subjected to the same manipulations as financial market data. Furthermore, FA tools appear to provide the interpreter with means to define, confirm, and possibly predict trends and trend reversals. Assumptions for the use of FA methods in biologic parameter analysis are also presented.The following core competencies are addressed in this article: Medical knowledge, Practice-based learning and improvement, Systems-based practice.Republished with permission from: Stawicki SP. Application of financial analysis techniques to clinical laboratory data: A novel method of trend interpretation in the Intensive Care Unit. OPUS 12 Scientist. 2007;1:1-4.

Estimation of Default Probabilities: Application of the Discriminant Analysis and the Structural Approach for Companies Listed on the BVC

This article aims to compare the calculated results of the structural approach (Internal Ratings-Based IRB) and the discriminant analysis (Z-score of Altman, 1968), based on data from companies listed on the BVC for the period from 02 January 2014 to December 31, 2014. The structural approach is directly linked to the economic reality of the company; the default takes place as soon as the market value of these assets falls below a certain threshold. The major constraint for this approach is the determination of the probabilities of default. This situation is overcome by using the Black & Scholes (1973) model, based on Monte Carlo simulations. While the Z-score method is a financial analysis technique of business failure predictions, which is based on financial and economic ratios.

Bankruptcy prediction of listed companies on the Tehran Stock Exchange

Purpose Bankruptcy is the last phase of economic life of companies and has some impacts on all of the entity’s stakeholders. Thus, the prediction of bankruptcy is very important. The inherent aim of preparing and developing financial accounting information is to provide a basis for economic decision-making, and any decision requires information acquisition, processing and data analysis as well as logical and correct interpretation of information. Developing models for predicting financial crisis and comparing the capabilities of existing models can help to alert management about ongoing activities and investors about economic decision for purchase shares or granting loan facilities to companies. So, the purpose of this study is the predict bankruptcy of listed companies on the Tehran Stock Exchange. Design/methodology/approach From the statistical methods’ perspective, the present research is classified as modeling and with respect to research methodology, it is a correlative-descriptive study in which the relationship between variables is analyzed based on the research objective. Predictive variables are the best ratios of cost of goods sold, non-operating revenues, net sales, predicted earnings per share (EPS) and real EPS. Findings Prediction of corporate bankruptcy crisis is one of the vital research areas. Predictive models are means for estimating the company’s future situation. Investors and creditors are highly willing to predict the bankruptcy crisis because the high costs associated with bankruptcy crisis will spoil the economy as a whole. On the other hand, this raises concerns among owners, and they are always seeking to find ways to preserve their capital through prediction of stocks continuing operations in the future. Having knowledge about bankruptcy or non-bankruptcy of automotive parts companies makes it possible to recognize weaknesses and strengths in the companies’ current performance and to make investment decisions. Practical implications Development of financial markets and, subsequently, creation of fierce competition has resulted in bankruptcy of many companies. Investors are always looking for predicting possible bankruptcy of a firm to prevent their investments risks because bankruptcy costs are high for investors, creditors, lenders and government agencies. Hence, they are seeking ways to estimate corporate bankruptcy. For this reason, over the past four decades, bankruptcy prediction has been enumerated as a key issue in companies and consequently because of its importance, many studies have been conducted to achieve the best model to predict bankruptcy. Originality/value Bankruptcy forecast is an economically important issue in every organization and company. Financial and accounting researchers are trying to offer financial models using various combinations of financial ratios with better measuring ability for performance and dividends payments as well as company continued activities. Bankruptcy prediction models are among financial analysis techniques in which the purpose of financial analysis and bankruptcy forecasting is recognition of efficiency and management executive performances. Moreover, the analysis of stock value by shareholder is another application of such research results. Basically, shareholders are interested in knowing the future status of the companies that are going to buy. In this way, shareholders use this method of analysis to estimate future activity or inactivity of firms.

Overcoming Borders: a Financial Analysis of Tourism Sector in Italy

Overcoming Borders: a Financial Analysis of Tourism Sector in Italy Lorenzo Gai, Federica Ielasi, ElisabettaVentisette Abstract Tourism is one of the economic sectors most involved in the movement of people and capital between countries. The analysis is focused on firms that offer accommodation services and, in particular, hotel companies and groups. In the last decade, these realities have hardly suffered from the effects of the economic crisis, aggravated by the overcapacity of national and international supply, and the power of online portals. This research aims to analyze and interpret the financial and economic conditions of this industry, in order to identify the potential entrepreneurial responses able to encourage the return to prosperity. The current results recorded by the sector is affected both by unfavorable conditions of specific competitive factors linked to demand and supply of accommodation services, and by constraints imposed by financial institutions and credit markets. For these reasons, the research aims to deepen the analysis of the relationship between hotels and banks, verifying the correlated impact on firms’ performance. The study is based on the use of advanced financial statement analysis techniques, for measuring the main economic ratios and financial flows, and the application of logistic regression models for determining the relationships between variables. The data for the empirical analysis are taken from the Bureau Van Dijk’s Aida database and refer to the years 2013-2015. The sample is made up of over 12,000 Italian companies. In this country, tourism is one of the economic sectors with the greatest strategic importance (it contributes to over 10% of national GDP). The sector is characterized by a high degree of fragmentation and the widespread presence of family businesses: about half of the sample has a turnover of less than 500,000 EUR. Alongside these realities, large international groups are active in the hospitality market, especially in the big cities, destinations of both art and business tourism. The competition with the large cross-border hotels’ chains emphasizes the importance of access to credit conditions for small to medium businesses. In fact, for SMEs, the actual opportunities to access bank loans at sustainable prices are critical issues for an effective competition with foreign investments. Therefore, starting from the financial and income statements of the hotels included in the sample, the purpose of the research is primarily to provide a critical analysis of the latest developments of this industry in Italy, through the measurement of the key performance indicators. After the application of financial statement analysis techniques, the study aims to verify the relationships between the hotels performances with the borrowing costs (average interest rate applied by banks over time) and the levels of banks’ debts. The analysis is based on regression models, which aim to understand the correlations between the bank-firm relationship and the level of economic and financial results achieved. The final objective is to check the nature and the weight of the financial variables in conditioning business performances. The contribution that the work is intended to provide to literature and operating procedures is related to a better and updated knowledge of the hotel industry, as well as the identification of potential evolution in the financial structures of hotel companies. Finance has to be no longer a constraint to business development, but a support for the creation of value, even for small family firms. Full Text: PDF DOI: 10.15640/jeds.v5n4a2

The Tendency of Revenue and Levies Contributions to the PAD Jayapura before and after the Law No. 28 of 2009

This study aims to determine the tendency of growth of tax revenu elevies, the contribution PAD Jayapura city before and after the Law 28 Year 2009. The research method is done through quantitative analysis using financial ratio analysis techniques Jayapura city government. The resultis an average contribution of taxes to PAD both before and after the implementation of Law No.28 of 2009 showed an increase but the contribution levy decreased. However, the contribution of PAD to Total Revenue Region (TPD) showed an increase(rising).

Solvency, Indebtedness, Rates of Return and Investment Impact on Economic and Technical Analysis Indicators (Case Study)

Abstract The purpose of the performed and presented financial analyzes, in the case of the two units, does not allow major discrepancies between the estimated and achieved situation. The authors have based the research on the technical-economic and financial analysis of investments, which sets economic efficiency and investments viability and assumes forecast of revenue, expenses, profit and loss account, balance sheet and cash flow: a) static analysis of indicators; b) dynamic analysis of indicators, c) cost-benefit analysis. Analysis of economic efficiency and sustainability of investments aimes at both static indicators of investment analysis and dynamic analysis of economic efficiency. The goal of research was to improve analyzes and economic indicators for assessing the effectiveness and sustainability of investments and the objectives targeted technical and economic analysis, solvency and viability of investments and the impact of the investment on key indicators of economic and financial technical analysis. Case studies, carried out at S.C. NORD INTERMED CONSULTING GROUP S.R.L. Dorneşti, Suceava county and S.C. ANDIMIR TOP S.R.L. Mihălăşeni, Botoşani county, led to a series of measures to improve the financial analysis of economic efficiency and sustainability of investments.

Çeltik Üreticileri Birliklerinin Mevcut Durumu ve Finansal Performans Analizi

The aim of this study is to determine the current situation and to analyze financial performance of rice farmers associations. The data obtained with the questionnaire method from a single rice farmers association selected as purposeful constitute material of the research. First, a general assessment of the association was conducted, and then, the financial performance of the association was analyzed using Financial Statement Analysis, Percentage Method, Trend Analysis and Ratio Analysis techniques with the aid of financial statement and income chart for the period of 2011-2013. As a result, it is determined association was founded in 2006, have a total of 220 active members and 10 women members in district and 18 villages and two university graduate staff. In addition, management and audit committee members are men, middle-aged, and primary or secondary graduated. The participation rate of members in general assembly is high. The important problems of the association are lack of solidarity among members and irregular payment of membership’s fee. In the period under investigation, decreased use of external resource, strengthening equity and increased profitability in the association were determined. It is possible to develop association as financial statue with positive relationships between association and members and activation of association in terms of marketing.

ANALISIS RASIO LIKUIDITAS, SOLVABILITAS, DAN PROFITABILITAS DALAM MENDUKUNG PEMBIAYAAN PADA PT BANK DANAMON INDONESIA, TBK.

The performance assessment of the financial aspects of the company more frequently using financial ratio analysis techniques. This analysis requires the financial statements at least the last two years. With the financial ratio analysis will be able to determine the level of liquidity, solvency, and profitability. A research technique that used is quantitative analysis (nonstatistik). From the research result showed that the ratio of liquidity, solvency, and profitability tends to increase and financing of PT Bank Danamon Indonesia, Tbk was in a healthy state, based on the results of tests performed that financing in PT Bank Danamon Indonesia, Tbk in 2011 increased by 777 962. This is due to an increase in the level of solvency. Increased financing occurs due to the condition of PT Bank Danamon Indonesia, Tbk. in a liquid state when viewed from the level of liquidity.Keywords: Liquidity Ratios, Solvency Ratios, Profitability Ratios, and Financing