Assessment Of Financial Performance Research Articles

PENINGKATAN KINERJA USAHA MELALUI ANALISIS NET PROFIT MARGIN(NPM)

This study aims to determine the increase in business performance through the analysis of Net Profit Margin (NPM) in Siti Snack's business. The research method used is a research method with quantitative analysis which tries to show the measurement of financial performance through NPM ratio analysis. The data used are secondary data originating from the financial statements of Siti Snack's business as the research sample for 2019. Based on the results of research and analysis of the financial performance assessment data of the "Siti Snack" NPM business, it can be seen that the values ​​produced each year fluctuate, if the value of the performance of this profitability indicator is compared with the average performance of the industry, the performance in 2019 to 2021 is found on average. the average is only 2.03% according to the standards imposed by Bank Indonesia, the financial performance of the institution is below standard. This can be caused by the tight business competition that occurs in the Jepara region, especially the snack food sector, and the Covid-19 virus factor that has hit Jepara for the last 2 years.

Analisis Perbandingan Kinerja Keuangan Bank Syariah dengan Bank Konvensional Perspektif Maqashid Syariah

Accounting as a complement (tahsiniyat) can turn into a necessity (hajiyat) at the maqashid level. Maqashid sharia is not the most decisive factor in giving birth to sharia economic products that can play a dual role as a tool of social control and socio-economic engineering to realize human benefit, sharia maqashid can provide philosophical and rational dimensions to sharia economic law products that are born in economic ijtihad activities contemporary sharia. Islamic banking, which is growing and developing in the country, is currently increasingly in demand by investors and potential investors. However, the problem is that people do not know how far the performance of Islamic banking is, when compared to the performance of conventional banks which first operated. This study is intended to compare the performance of the two banks, this is important so that investors, potential investors know and assess the performance of the two banks. Assessment of financial performance can be seen from the financial ratios of CAR, ROA, ROE, NPL, LDR, and BOPO. The research population is 14 Islamic commercial banks. The sample using purposive sampling, using 3 Islamic banks, Bank Negara Indonesia (BNI) Syariah, Bank Rakyat Indonesia (BRI) Syariah, Bank Mandiri Syariah and 115 conventional banks. Research data from the annual financial statements of the banks under study. The data analysis technique used the Mann-Whitney U Test. The results showed that there was no significant difference in the CAR ratio between Islamic banks and conventional banks. The ratio of ROA, ROE, NPL, LDR and BOPO there are significant differences between Islamic banks and conventional banks. The financial performance of Islamic banks is better in terms of the LDR ratio, while the financial performance of conventional banks is better in terms of the ratios of CAR, ROA, ROE, NPL, BOPO.

Analisis Valuasi Saham menggunakan Free Cash Flow to Equity (FCFE), Price Earning Ratio (PER) dan Kinerja Keuangan dari sudut pandang Economic Value Added (EVA)

ABSTRACT
 In investing activities, investors have various options to choose financial instruments in the capital market such as stocks and bonds. Stocks are one of the most popular assets in the capital market. However, that investing involves high risks and challenges for investors. To reduce this risk, stock valuation is used before choosing the decision to be taken on the desired stock.
 Stock valuation is one important thing in investing. The aim is to help investors to minimize the risk of investment through intrinsic value in making investment decisions. The evaluation model for calculating intrinsic value is fundamental analysis with Free Cash Flow to Equity (FCFE) and Price Earning Ratio (PER). In addition, an assessment of financial performance using the Economic Value Added (EVA) point of view is added to determine the company's ability to empower its capital as one of the parameters in investment decisions. By using regression analysis, it is found that EVA is not able to be a predictor of FCFE, while EVA can be a predictor of PER.
 The results of the calculations, there are not companies that have the results according to the recommendations. Investors or stakeholders can choose the company according to the point of view they want or need, they tend to value stocks by looking at the company's available cash flows or more interested in assessing the company's income and stock prices. According to the calculation results, the results of undervalued stocks in the stock valuation analysis (FCFE/PER) and the lowest negative EVA results from the undervalued stocks can be an option.
 Keywords: Stock Valuation, Financial Performance, FCFE, PER, EVA
 
 
 
 
 

Kajian Rasio Profitabilitas dan Rasio Solvabilitas Pt Astra International Tbk

Assessment of financial performance for companies is important because it is used to see the company's performance in the future by knowing the overall picture of the financial position. The purpose of this study is to examine the company's financial performance using the profitability ratios calculated using the Gross Profit Margin, Net Profit Margin, Return On Assets, Return On Equity and the solvency ratio calculated using the Debt to asset ratio and the Debt to equity ratio. The method used in this research is descriptive study with the main object of this research is PT Astra International Tbk. The type of data used is secondary data, secondary data obtained from company financial statements that have been audited for the 2017-2020 period. The method of analysis in this study is horizontal analysis by comparing financial statements with different periods. The results in the study using the profitability ratios from the 2017-2020 period on Gross Profit Margin and Net Profit Margin fluctuated which indicated that the company's operational performance was not good, Return On Equity had decreased and Return On Assets was in a fluctuating condition. For calculations using the solvency ratio has decreased, which means the company's financial performance is getting better and more effective.

ANALYSIS OF THE EFFECT OF GOOD CORPORATE GOVERNANCE MECHANISM ON FINANCIAL PERFORMANCE ON FAMILY COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE

This studys aims to determine the analysis of the effect of good corporate governance mechanisms on the company's financial performance. The sample data obtained were 47 companies for the period 2018-2020 which were associated with 5 research variables, namely 4 independent variables: Independent Board of Commissioners, Institutional Ownership, Managerial Ownership, Audit Committee and 1 dependent variable: Company Financial Performance Measured by Return On Assets (ROA). The data analysis methods used were coefficient of determination test, F statistic test and t statistic test. The results showed that the independent board of commissioners variables, institutional ownership and managerial ownership had no effect on the financial performance assessment as measured by ROA. While the audit committee variable has a significant effect on financial performance as measured by ROA. All variables simultaneously have a significant effect on the assessment of financial performance as measured by ROA

ANALISIS KINERJA KEUANGAN UNIT PENGELOLA KEGIATAN (UPK) SIMPAN PINJAM PEREMPUAN (SPP) KECAMATAN SIULAK KABUPATEN KERINCI PERIODE 2016-2020

This study aims to assess and analyze the financial performance of the women's savings and loan management unit (SPK) Siulak District, Kerinci Regency. Financial performance assessment is seen from two aspects, namely aspects of financial management and aspects of loan management. This study uses secondary data from the financial statements of UPK SPP Siulak District, Kerinci Regency, in the form of UPK income statement and other related reports from 2016 to 2020. Data were analyzed using a financial ratio analysis approach. The results showed that the financial performance of UPK SPP Siulak Subdistrict Kerinci Regency viewed from the aspects of financial management from 2016 to 2020 ranged from intervals of 17.77% -21.15%, including the category of underperformance, while the financial performance of UPK SPP Subdistrict of Siulak District of Kerinci Regency viewed aspects of loan management from 2016 to 2020 ranged from intervals of 1.92% -2.52% including underperforming categories. The results of UPK SPP health assessment in Siulak District Kerinci Regency from 2016 to 2020 were 61.66, including the quite healthy category.

Pengaruh Struktur Modal, Pertumbuhan Perusahaan Dan Kinerja Keuangan Perusahaan Terhadap Nilai Perusahaan Sub Sektor Makanan Dan Minuman Di Bursa Efek Indonesia

The Company value is one of the most important things in a company. The value of the company is reflected by the stock price which shows the public's assessment of the company's financial performance. The value of the company is able to increase the welfare of shareholders if the share price increases because the value of the company shows the level of welfare of the shareholders. The purpose of this study is to determine the effect of capital structure, company growth and company financial performance on company value in food and beverage sub-sector companies listed on the Indonesia Stock Exchange in 2015 - 2019. This study uses a quantitative approach and statistical tools like multiple regression analysis in conducting hypothesis testing. Partially, the results of this study show that company value in food and beverage sub-sector companies listed on the Indonesia Stock Exchange in 2015 - 2019 is affected by capital structure and financial company performance, while company growth does not affect company value . Simultaneously, the results of this study show that capital structure, company growth, and company financial performance effect on the value of company in food and beverage sub-sector companies on the Indonesia Stock Exchange. The coefficient of determination (R2) in this study is 74.6%, this indicates that capital structure, company growth and financial performance company can explain company value about 74.6%, while 25.4% is explained by other variables. outside of this study.

Municipal fiber in the United States: A financial assessment

Despite growing interest in broadband provided by municipally owned and operated fiber-to-the-home networks, the academic literature has yet to undertake a systematic assessment of these projects' financial performance. To fill this gap, we utilize municipalities' official reports to offer an empirical evaluation of the financial performance of every municipal fiber project in the U.S. operating in 2010 through 2019. An analysis of the actual performance of the resulting fifteen-project panel dataset reveals that none of the projects generated sufficient nominal cash flow in the short run to maintain solvency without infusions of additional cash from outside sources or debt relief. Similarly, 87% have not actually generated sufficient nominal cash flow to put them on track to achieve long-run solvency. In addition, 73% generated negative nominal cash flow over the past three fiscal years, leaving them poorly positioned to make up their deficits and causing them to fall farther into debt. An assessment based on the net present value of these projects' operating cash flow indicates that 53% of projects would not be on track to breakeven even assuming the theoretical best-case performance in terms of capital expenditures and debt service. Close analysis of these projects’ performance reveals that revenue generation likely plays a more important role in generating cash flow than efficiency in construction costs or operating efficiency.

Determinants of financial performance in Albanian economic entities, case of construction industry in Albania

Financial performance mainly reflects the overall financial health of the business sector over a period of time. It shows how well an entity is using its resources to maximize shareholder’s wealth. Although a thorough assessment of a firm's financial performance takes into account many other measures, the most common performance measurement used in the area of finance are financial ratios. This paper provides a comprehensive study of the financial performance measurement literature related to the construction sector in Albania. The literature covers studies from Albania, Iran, India and Pakistan, but some international evidence has also been presented. The construction sector is chosen because of its impact on economic growth in Albania, it represents the second main sector according to its share effect on Albanian GDP. The financial ratios used to measure the financial performance of the construction sector are the debt ratio, the liquidity ratio and the profitability ratio from the period 2018-2020 for 100 construction companies in Albania. Return on Assets (ROA) is taken as the predictor variable and three financial ratios are taken as the predictive variables. This research reveals that the financial ratios have positive correlation with the dependent variable whereas the leverage ratio has negative correlation. To overcome the limitations of the forthcoming studies, the considered number of years need to be increased and other models such as Market Value Added, Capital Asset Pricing Model and Economic Value Added can be used to be tested for research to analyze other factors that may affect financial performance.

Financial Performance Measurement Using Solvency Ratio at PT. AKR Corporindo Tbk. 2015-2019 Period

This study aims to measure the financial performance of PT AKR Corporindo Tbk's 2015-2019 financial statements by using the solvency ratio. The method in this research is quantitative. The subject in this study is the financial statements of PT AKR Corporindo Tbk in 2015-2019 using the solvency ratio. The results of this study indicate that the assessment of financial performance at PT. AKR Corporindo Tbk, for the debt to asset ratio is considered not good because it exceeds the industry average standard that has been set, the debt to equity ratio is considered healthy even though it exceeds the industry average standard, because large funds are obtained from short-term debt, namely debt business, and the long term debt to equity ratio is also considered good because it is below the industry average standard. The results of this study indicate that the solvency ratio at PT AKR Corporindo Tbk has decreased and increased according to industry standards.

ANALISIS KINERJA KEUANGAN PERUSAHAAN PT.INDUSTRI JAMU DAN FARMASI SIDO MUNCUL TBK

Abstract
 It is important to assess the company's financial performance to assist management and investors in making decisions. One method to analyze the company's financial performance assessment is using the Economic Value Added (EVA) analysis method. EVA is an analytical method to determine the company's added value by subtracting economic profit from the cost of capital issued. EVA method analysis begins by calculating Net Operating Profit After Tax (NOPAT), Invest Capital (IC), Weighted Average Cost of Capital (WACC), Capital Charge (CC) and Economic Value Added (EVA). This study aims to assess the financial performance of PT. Sido Muncul's Herbal and Pharmaceutical Industry, 2017-2019 using the Economic Value Added (EVA) analysis method. This research is descriptive and uses a quantitative approach. The data in this study are financial statements, namely balance sheets and income statements. From the results of the study, the EVA value during the research year increased and was positive (EVA > 0). This shows that PT. The Herbal and Pharmaceutical Industry of Sido Muncul Tbk is able to create added economic value for management and investors (shareholders). After being compared with similar companies, the EVA value which occupies the highest position is PT. Kalbe Farma Tbk, then the next sequence is PT. Herbal and Pharmaceutical Industry Sido Muncul Tbk and the last one is PT Darya-Varia Laboratoria Tbk.
 
 Keywords: Financial statement analysis, NOPAT, IC, WACC, CC and EVA

The contribution of intellectual capital to banks' competitive and financial performance: The evidence from Poland

PURPOSE: The paper aims to investigate the contribution of intellectual capital to banks' competitive and financial performance. METHODOLOGY: The paper uses data retrieved from a research survey. The questionnaire on IC contribution to banks' competitive performance was applied to executive managers of retail banks operating in the Polish banking market. The data collected for the assessment of financial performance were retrieved from banks' annual reports and referred to each year from 2012 to 2019. The data were analyzed by Principal Axis Factor Analysis (PAF) and Partial Least Squares Structural Equation Modelling (PLS-SEM). FINDINGS: The results revealed that banks' competitive and financial performance depends on both the intellectual capital and environmental factors. The relation between financial performance and intellectual capital is positively mediated by competitive performance, and environmental factors can affect the strength of this relationship. The findings show that applying the resource-based theory might not be sufficient to gain a competitive advantage and sustainable market position in the case of banks. IMPLICATIONS: The results develop IC knowledge and prove the necessity to conduct systematic research on their importance for creating value for customers and gaining competitive advantage. They also provide direction for banks' decision-makers concerning factors that should be taken into account to create competitive advantage, market performance, and efficiency. The Polish banking market has transformed from undeveloped and non-competitive into a developed and competitive one during the last few decades. Thus, the results also have implications for other companies operating in transition markets as their competitiveness depends on understanding which factors should be the foundation for their market strategy and their competitiveness and efficiency to become a developed one. ORIGINALITY AND VALUE: The majority of the IC research concentrate on developed countries, and very little is known about developing and transition countries that were successful on their journey. Most of the research has focused on identifying and measuring IC components and the relationship between them. Usually, the research presents the state of the art and it is based on financial reports. However, the extent to which IC impacts competitive and financial performance in banking markets has been relatively rare. To the authors' best knowledge, this is the first study to examine empirically the relationship between intellectual capital, environment, competitive performance, and efficiency in a transformed banking market in Europe, which analyses the IC contribution over a few years' perspectives.

Share price behavior of Nepalese insurance companies

This research explores the influencing factors of market share price behavior in the Nepalese insurance business. The study focuses on four insurance firms and utilizes a purposive sample approach, yielding a dataset of 40 observations. The research investigates the correlations between significant factors such as dividend payout ratio (DPR), Earnings per share (EPS), price–earnings ratio (PER), dividend per share (DPS), and market price per share (MPS). The data show strong relationships between these characteristics and the MPS. The DPR and MPS have a negative connection, indicating that increased dividend distributions may lead to lower market prices. Positive correlations, on the other hand, are discovered among EPS, PER, DPR, and MPS, indicating that investors appreciate firms with greater profitability, growth prospects, and dividend payments. The research adds to the knowledge of share price behavior in Nepalese insurance firms. However, it is crucial to note that the findings are based on small sample size and may not apply to other sectors or countries. To fully understand the factors determining market pricing, future research should investigate increasing the sample size and including longitudinal approaches. These results have practical ramifications for investors, insurers, and politicians. Understanding share price behavior allows stakeholders to make educated choices about investment strategies, financial performance assessment, and policy creation to improve economic performance and shareholder value in Nepal's insurance business.

Investigating the relationship between bank performance and accounting standards: evidence from M&As in European banking

PurposeThe study aims to identify whether international financial reporting standards (IFRS) or local generally accepted accounting principles (GAAP) reporting provides investors and senior management of acquirer banks with superior information on target banks under post-merger bank performance.Design/methodology/approachThe authors examine the claim that IFRS improves corporate transparency and increases financial reporting quality in European Bank merger and acquisitions (M&As). The authors compare the financial performance of merged banks where the target and acquirer banks employed the same reporting system (up to 305 merged banks) to the performance of a control group of banks not engaged in M&A activity (up to 1,690 European banks).FindingsLocal GAAP reporting allows a more transparent assessment of financial performance using traditional indicators, making it a superior tool for assessing potential acquisition targets.Practical implicationsOverall, the empirical findings are consistent with prior studies and indicate a significant relationship between local GAAP and post-merger performance, while IFRS does not contribute to post-merger bank performance.Originality/valueThe study is one of the very few studies to investigate the relationship between bank performance, M&A activity and accounting standards in EU-28 countries. The primary contribution the finding of poor performance of IFRS reporting merged banks compared to local GAAP banks in EU-28 countries in line with prior results of Huian (2012). In addition, several deal- and bank-specific characteristics that affect accounting standards influence M&A transactions in European banks.

THE IMPACT OF CORPORATE GOVERNANCE PRACTICES ON POST-MERGER PERFORMANCE

The relation between the post-merger performance and corporate governance mechanism is examined using Linear regression model for a sample of US, Canada, EU-28 and Western European countries listed firms for the period from 2003 to 2012. We also examine as to whether the use of International Financial Reporting Standards (IFRS) improves corporate transparency, therefore, increasing financial reporting quality. Using a sample of banks from international countries, we present the following key findings: post-merger performance is significantly better common law in countries than code law in countries with better IFRS group banks during the post-merger performance. We also find that local GAAP reporting allows a more transparent assessment of financial performance on the basis of traditional indicators making it a superior tool for assessing potential acquisition targets. This study analysis changes in a country legal regulation as a measure of corporate governance and shows that these regulations play an important role in merger activity. Legal origins and owner-protection mechanisms are important in explaining the relationship between the quality of accounting standards and corporate governance practices following IFRS adoption. Overall, our empirical findings result consistent with Ciobanu (2015) find that merger and acquisition is influenced both the legal origin and accounting regulations.

Financial Performance Assessment of Non-Life Insurance Companies by Using Grey Relational Analysis: The Case of TRNC

Financial Performance Assessment of Non-Life Insurance Companies by Using Grey Relational Analysis: The Case of TRNC

Factors Affecting Capital Structure of Small-Medium Enterprises Listed in Indonesia Stock Exchange

This study aims to analyze the factors that influence the capital structure of SMEs, by examining the effect of the independent variables of profitability, growth of opportunity, collateral, corporate tax, tax shield, non-debt tax shield, liquidity, earnings volatility, and cash flow volatility; to the capital structure of SMEs as the dependent variable. As for anticipation of bias, the study uses size, company age, GDP, interest rates, inflation, and market capitalization as control variables. The data used in this study is a combination of cross-sectional and time-series, which is called panel data. The number of samples in this study was 53 SMEs listed on the Indonesia Stock Exchange during 2016-2020. The result of this study shows that profitability has a significant negative effect on DAR, but has no effect on DER. Growth of total assets has no effect on DAR and DER, growth of tangible assets has no effect on DAR and DER, and growth of market value has a significant positive effect on DAR, but has no effect on DER. Collateral harms DAR and DER. Corporate tax does not affect DAR but has a significant negative effect on DER. Tax shield has a significant negative effect on DAR and DER. Non-debt tax shield does not affect DAR but has a significant negative effect on DER. Liquidity has a significant negative effect on DAR and DER. Earnings volatility has a significant positive effect on DAR and DER. Cash flow volatility does not affect DAR and DER. Company size has a significant positive effect on DAR and DER. Company age has a significant positive effect on DAR but has a significant negative effect on DER, gross domestic product (GDP) has a significant positive effect on DAR and DER, loan interest rates do not affect DAR, but harm DER. Inflation has no effect on DAR but harms DER, and market capitalization has a significant negative effect on DAR and DER. This study implies that for investors, it is necessary to conduct a thorough assessment of financial performance and the factors that influence the capital structure before deciding to invest. A high capital structure can reduce potential profits and increase the risk of default. Thus, investors need to pay attention to the factors that have a negative and significant effect with a large level of influence on the capital structure, because if these factors increase, the capital structure will decrease. This will create efficient and effective use of capital and avoid the high cost of equity or cost of debt so that it can be utilized optimally to provide maximum benefits for SMEs and investors

Menakar Kinerja Keuangan dengan Menggunakan Rasio Solvabilitas

This study aims to measure the financial performance of PT AKR Corporindo Tbk’s 2015-2019 financial statements using the solvency ratio. The method in this research is quantitative. The subjects in this study were the financial statements of PT AKR Corporindo Tbk for the years 2015-2019 using the solvency ratio. The results of this study indicate that the assessment of financial performance at PT AKR Corporindo Tbk, for debt to asset ratio is considered not good because it exceeds the industry average standard set, for debt to equity ratio is considered healthy even though it exceeds the industry average standard, because large funds are obtained from short-term debt, namely debt business, and the long term debt to equity ratio is also considered good because it is below the industry average standard. The results of this study indicate that the solvency ratio at PT AKR Corporindo Tbk has decreased and increased based on industry standards.

MSMEs Financial Management during the Pandemic

The Covid-19 pandemic has disrupted supply chain businesses, forcing many companies, especially small and medium enterprises (MSMEs), and individuals to face enormous pressures in terms of lack of capital (Guo et al., 2020). MSMEs need to be considered in the midst of the Covid-19 pandemic like this so that they can survive in declining financial conditions. Assessment of financial performance for MSMEs is very important to do, this is used to measure and evaluate so that an overview of MSMEs financial conditions is obtained as a whole. (Sasmita, Ikhwan, Suyanto, & Chongsuvivatwong, 2020). Kampoeng Rajoet Binong Jati is a MSMEs in Bandung City that is located in Binong Village, Batununggal District. The focus production are knitting. The problems faced by the craftsmen in Kampoeng Rajoet Binong Jati are that the craftsmen still have difficulty using social media in introducing and marketing their knitted products, the preparation of financial reports for their businesses is still traditional and mixed with family finances and financial management during the Covid-19 pandemic. For businessmen, especially small and medium enterprises, financial strategy is an important factor that must be considered in an effort to maintain stability and develop business in a better direction. For this reason, businessmen must strictly implement a good financial strategy in accordance with the right systems to keep the business running in the midst of this Covid-19 Pandemic. © RIGEO 11(6), SPRING, 2021

Financial performance assessment of branded and non-branded hotel companies. Analysis of the Portuguese case

PurposePortugal has been experiencing a continuous growth in tourism activity, with hospitality industry as one of the main tourism sectors. Therefore, the assessment of hotel companies’ performance is very important to assist decision processes. The purpose of this paper is to assess the financial performance (FP) of 570 hotel companies operating hotel units in Portugal in 2017. To explore the question of brand affiliation, a comparison was made between hotel companies with similar stars rating and market orientation. In addition, this paper intends to fill a gap in literature studying the Portuguese reality on the subject of brand affiliation.Design/methodology/approachThe present study uses a methodology based on data envelopment analysis (DEA) to assess the overall performance for each company, which further decomposed into the within-group performance and the technological gap. The performance of the hotel company is assessed through the aggregation of multiple financial indicators using the composite indicator (CI) derived from the DEA model. A bivariate analysis based on the Tobit regression to test the robustness of brand effect on FP of hotel companies (HC) was also included.FindingsThe empirical results show that branded companies, on average, have significantly better overall FP than non-branded companies. On the one hand, the brand effect tends to improve the within-group FP of HCs and the brand presents a statistically significant positive effect on the FP. On the other hand, the best practices are observed in both branded and non-branded companies.Practical implicationsThe results of this study illustrate that, globally, the better FP of the branded companies is because of their individual relative companies’ performance and a better model of operation given by the brand effect. Brand affiliation will generally allow for a better FP and essentially a better profitability for invested equity, a higher return on sales and a higher value added per employee.Originality/valueThe study provides important theoretical and practical contributions that can assist the strategic decision of the HCs in choosing to operate independently or to adopt brand affiliation. Also, it is innovative because the FP of branded and non-branded HCs is measured not using a set of individual financial ratios but through a single CI that aggregates those financial ratios, using a DEA model.