Financial Ratio Analysis Research Articles

MICROPRUDENTIAL ASPECT BEYOND RULE OF THUMB IN RURAL BANK INDUSTRY IN INDONESIA

Objective: This research aims to examine the microprudential aspects beyond traditional rule of thumb measures in the regulation of Rural Banks in Indonesia, particularly focusing on the implications of recent regulatory changes that have prompted Rural Bank mergers. Theoretical Framework: This research utilizes a framework that incorporates financial ratios as critical indicators of bank performance and health. It considers the influence of regulatory frameworks—especially those outlined in POJK regulations—on the operational effectiveness and stability of Rural Banks. Related to the forced corporate action, reason that administrative reform may not have increased merger activity as expected is that larger, combined activities are likely to be more readily able to absorb the significant costs of complying with administrative reform than smaller Rural Bank. Method: This research methodology used is a qualitative descriptive method. In conducting this study, researchers used primary data and secondary data. Primary data obtained from the results practitioners' perspective of interviews (in-depth interviews) with experts and practitioners, who have an understanding of the issues discussed in Rural Bank Industry so that we can presumably determine the real current situation using a Qualitative Descriptive method with a Phenomenology study approach. While secondary data was complemented by data collected from literature studies, from the Financial Service Authority (OJK) official website, Several Rural Bank Performance Report and Financial Report during 2019 - 2023, scientific articles, books, information from the mass media and other relevant sources of information. Result and Discussion: This study highlights that reliance solely on the rule of thumb can be misleading in assessing bank health. It shows that a detailed analysis of various financial ratios—such as capital adequacy, asset quality, earnings, and liquidity—provides a more comprehensive understanding of a bank's performance and risks associated with mergers. The banking industry those had time to familiarize itself with the subject and to put legislation into concrete action. Other findings indicate that the enforcement of regulations aimed at increasing capital adequacy and reducing systemic risk has led to forced mergers among Rural Banks. Research Implication: The study underscores the importance of integrating microprudential regulations into the operational frameworks of Rural Banks. It suggests that regulators should prioritize comprehensive assessments based on financial ratios rather than simplistic heuristic methods, especially in the context of forced mergers driven by regulatory pressures. Effective and appropriate use of the merger strategies forced by regulator (OJK) have not facilitated Rural Banks’ efforts exactly to earn above-average returns. However, even when pursued for value-creating reason, merger strategies are not problem-free. Reason for the use of merger strategies and potential problem with such strategies are suboptimum goals congruence because of management control problem – include lack of direction, motivational problem, and personal limitation (Merchant et al, 2017). Recommendation: The research recommends that Rural Banks systematically evaluate their financial health using detailed financial ratios and adapt to the new regulatory landscape that encourages mergers. It also urges regulators to refine their guidelines to include these metrics as essential tools for ongoing performance assessment. Enhanced training for bank management on interpreting and applying these financial ratios can improve overall operational effectiveness, particularly in the context of mergers. Merger is not just about consolidating financial aspects, but also harmonizing the combination of tangible (Numbers on Balance Sheet) and intangible assets (Human capital aspect).

Financial Ratio Analysis of Tata Motors Limited

This report presents a comprehensive financial ratio analysis of Tata Motors Limited, focusing on its performance in the automobile industry. The analysis aims to evaluate the company's financial health and operational efficiency through various financial ratios. The findings are based on data collected during a summer internship at Tata Motors, providing insights into the company's strengths and weaknesses in the competitive market.

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

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

Analysis of financial ratios in measuring pt Unilever’s financial performance in 2020-2023

Analysis of financial ratios in measuring pt Unilever’s financial performance in 2020-2023

Analisis Rasio Likuiditas, Solvabilitas, dan Profitabilitas PT. Garuda Indonesia Persero Tbk Sebelum dan Setelah Penerapan PSAK 73

Leasing is an agreement between the lessor (leasing company) and the lessee (customer) in which the lessor provides goods with the right to use by the lessee in exchange for rental payments for a certain period. PSAK 73, which was established in 2020, regulates the recognition, measurement, presentation and spread of rent, especially for lessee. PSAK 73 only allows lessees to classify leases as finance leases so that assets and liabilities from lease transactions are recognized in the statement of financial position, with offers for short-term leases and leases with low-based assets. The aim of this research is to find out how the implementation of PSAK 73 regarding rent has an impact on the financial performance of PT Garuda Indonesia (Persero) Tbk. This research uses financial ratio analysis Current Ratio, Debt to Asset Ratio, Debt to Equity Ratio, and Return On Asset Ratio

Analisis kinerja keuangan pada sektor consumer cyclicals yang terdaftar di BEI periode 2020 - 2023

Financial performance analysis is really needed in a company in order to see the extent of the company's financial performance over a certain period of time. This financial performance analysis can help the company in making decisions in the future. Analysis of financial performance in a company can be seen using financial ratio analysis. This research aims to determine differences in the financial performance of the Consumer Cyclicals sector, especially the media and entertainment sub-sector for the 2020-2023 period. This type of research is a descriptive statistical approach. The analysis method used is trend analysis. The research results show that there is an increase or decrease in the media and entertainment sub-sector listed on the Indonesian stock exchange for the 2020-2023 period using the debt to asset ratio, net profit margin, current ratio and total asset turnover.

Analysis of the Impact of Yogyakarta International Airport (YIA) on the Financial Independence of Kulon Progo Regency

This research aims to analyze the impact of YIA's existence on the financial independence of Kulon Progo Regency during three different time periods, namely the pre-COVID period (2018-2019), the Community Activity Restrictions (PPKM) period (2020), and the period entering the new normal era (2020). 2021-2022). The approach used in this research is through regional financial ratio analysis with a focus on taxes and levies. The research results show that the existence of YIA has a significant impact on tax and retribution revenues in Kulon Progo Regency. The results of this research provide a better understanding of the impact of YIA's existence on regional finances and can be used as a basis for making better policy decisions in the future

Construction of a Model for Evaluating the Operating Efficiency and Performance of State-Owned Enterprises Using Fuzzy Comprehensive Evaluation

State-owned energy, transportation, and telecommunications enterprises power many countries' economies and societies. Considering commercial and social objectives, SOE performance evaluation is complex. Rather than innovation, sustainability, and stakeholder satisfaction, financial factors have determined SOE's success. The present study simulates an SOE Fuzzy Comprehensive Evaluation approach to overcome the constraint. The model encompasses quantitative and qualitative performance. The proposed model prioritizes the whole evaluation aim and follows it with performance criteria and sub-criteria. This paper used the analytical hierarchy process with expert survey input to fine-tune the standard weights. Fuzzy logic addresses the uncertainty in qualitative analysis. This method performs traditional financial ratio analysis, balanced scorecard, and data envelope analysis

Comparative Analysis of Financial Ratios of Selected Semiconductor Equipment Firms During 2020-2023

As a matter of fact, the semiconductor equipment industry has been developing rapidly. On this basis, this research provides a comparative analysis of the financial ratios of four selected semiconductor equipment firms, i.e., Axcelis Technologies (ACLS), ACM Research (ACMR), Onto Innovation (ONTO), and Veeco Instruments (VECO), over the period from 2020 to 2023. With this in mind, the study aims to evaluate the financial health, operational efficiency, as well as market performance of these firms in order to identify the optimal investment target for value investing. According to the analysis, a specific investing target is selected. Overall, this research is useful in comparing assets and liabilities, gross revenue, stocks, bonds, return on investment, and other specifications of each of these companies that bring out their strong and weak areas. Based on the analysis, ACLS emerges as the most promising candidate due to its robust financial performance and stable market valuation.

Analysis of the Effect Financial Ratios to Probability Default With the Risk as Moderation in Indonesian Building Construction Sub-Sector Companies

The construction and building sector are one of the important sectors for Indonesia development and economy, furthermore it is also being an indicator in assessing the economic development of a country. The development in the sector of construction and building, which is currently facing intense market competition, is encouraging many companies to improve their management fundamentals. A company's inability to anticipate changes can result the decreasing in business volume, which eventually has a negative impact on profits and caused bankruptcy. The aim of this research is to analyze the effect of GPM, NPM, CR, DER, TIE, and TATO by moderating risk on probability default (probability of bankruptcy) in the construction and building companies in Indonesia which registered on the IDX for the 2014-2023 period. The research method used in this research is a panel data model to estimate the coefficient model. The result shows that Total Assets Turnover (TATO) has a positive and significant effect on the probability of bankruptcy. Meanwhile, Gross Profit Margin (GPM), Net Profit Margin (NPM), Current Ratio (CR), Debt Equity Ratio (DER), and Times Interest Earned (TIE), does not have a significant effect on the probability default in the construction and building companies.

Pengaruh Struktur Modal dan Likuiditas Terhadap Profitabilitas Bank Konvensional yang Terdaftar pada Bursa Efek Indonesia

This study aims to investigate the relationship between capital structure and liquidity with profitability of conventional banks in Indonesia. This analysis uses secondary data from 24 banks listed on the Indonesia Stock Exchange between 2021 and 2023. The analytical approach used includes multiple linear regression with classical assumption tests and hypothesis testing. The findings show that while capital structure has a significant positive impact on profitability, liquidity has no impact on profitability. The limitation of this study lies in the differences in the results of financial ratio analysis which may be influenced by variations in calculation methods. This study suggests that banking companies should pay attention to capital structure management to improve profitability. The contribution of this study lies in providing insights that can be used by bank managers and researchers in making strategic decisions related to capital structure and liquidity. Further research is expected to consider more comprehensive data as well as more standardized methods to improve the accuracy of the research results.

Multi-factor fuzzy sets decision system forecasting consumer insolvency risk

The objective of this study is to develop a multi-factor decision system predicting insolvency risk for natural persons with the use of fuzzy sets. Considering that the financial situation of households is affected by various endogenous and exogenous factors, the main assumption of this study is that the system for predicting financial difficulties should not be limited to the use of only a few financial variables concerning consumers, but also include variables describing the environment. The author proposes a system consisting of three different forecasting models that connect the macroeconomic and microeconomic environments. It monitors the economic situation of households by also identifying those environmental variables, which may directly, or indirectly, endanger the consumer, such as unemployment rate (job market situation), inflation and interest rates, exchange rates, or economic situation in the country (GDP growth rate, the dynamics of retail sales, etc.). Moreover, the created cause-and-effect tool is in the form of a flexible application that can be easily adapted to changing economic conditions. Another unique feature of the study is the proposed use of newly developed ratios in household finance, similar to that in financial ratio analysis, which is commonly used in corporate finance. The proposed ratios demonstrated high predictive abilities. The paper also identifies the predictive capabilities of selected macroeconomic variables from the perspective of their impact on the risk of consumer insolvency. The research relies on four samples consisting of a total of 2400 consumers from Taiwan and Poland. The author created three forecasting models separately for the South-East Asian and Central European regions, and two multi-factor systems, each consisting of 1260 decision rules. The findings clearly showed that fuzzy logic is a significantly more effective method compared to traditional models based on classical logic.

Analysis of Financial Ratios on Stock Prices with Profitability as a Moderating Variable for LQ45 Index Companies Listed on the Indonesia Stock Exchange

The objective of this study is to examine the influence of financial ratios on stock prices, with a particular focus on the role of profitability as a moderating factor among LQ45 index companies listed on the Indonesia Stock Exchange between 2020 and 2023. The independent variables employed in this study are liquidity ratio (CR), solvency ratio (DER) and market value ratio (PER), in addition to profitability (EPS) as a moderating variable. The dependent variable is stock price. This study employs a sample of 23 selected companies included in the LQ45 index. The data analysis method utilised is multiple linear regression. The findings indicate that the liquidity ratio and solvency ratio exert no significant influence on the company's stock price. Conversely, the market value ratio exerts a significant effect on stock prices. Furthermore, profitability does not serve as a moderating variable for the liquidity and solvency ratios, whereas it does for the market value ratios on stock prices.

ANALISIS RASIO LIKUIDITAS DALAM MEMENUHI KEWAJIBAN PADA PERUSAHAAN DAGANG YANG TERDAFTAR DI BURSA EFEK INDONESIA

The objective of this research is to analyze the liquidity ratio in measuring the company's ability to meet obligations in trading companies listed on the Indonesia Stock Exchange. The usefulness of the research results is expected to contribute to the understanding of solving issues related to the analysis of factors affecting customer loyalty and can be used as a consideration for the companies studied in taking corrective steps for the future. It can also be used as an evaluation material in determining future company strategies. Financial ratio analysis is a part of business or risk prospect analysis for decision-making purposes by evaluating the business environment, strategy, and the company's financial position and performance. The financial statement analyses commonly used by companies include liquidity analysis, solvency analysis, and profitability analysis. Liquidity analysis provides insights into a company's ability to match short-term liabilities maturing with current assets. The liquidity ratio owned by the company can be used as an evaluation material and for the effectiveness of company management. Based on these issues, the author conducted research on "Liquidity Ratio Analysis in Meeting Obligations in Trading Companies Listed on the Indonesia Stock Exchange" using annual financial reports for the period 2020-2022. The data analysis technique in this study uses descriptive analysis by collecting data, classifying data, explaining, and analyzing to provide clear information and insights into the issues being researched. The results of the study show the liquidity ratio in measuring the ability of short-term debt of trading companies listed on the Indonesia Stock Exchange (IDX) for the period 2020-2022, including PT. Bintang Oto Global Tbk, PT. Midi Utama Indonesia Tbk, PT. Wicaksana Overseas International Tbk, PT. Modern International Tbk, and PT. Perdana Bangun Pusaka Tbk. Viewed from the current ratio of 42.22% < 75%, it is categorized as unhealthy, meaning the hypothesis taken is that the company is unable to meet short-term debt obligations with the liquidity ratio. The quick ratio of 286.69% and the cash ratio of 181.31% > 150% are categorized as very healthy, thus the hypothesis taken is that the company is able to meet short-term debt obligations with the liquidity ratio.

ANALYSIS OF LIQUIDITY RATIOS AND PROFITABILITY RATIOS TO ASSESS FINANCIAL PERFORMANCE

PT. GoTo Gojek Tokopedia Tbk experienced a profit that continued to decline from 2019 to 2022. The purpose of this study is to determine how the profitability ratio is seen from gross profit margin, net profit margin, return on assets, and return on equity at PT. GoTo Gojek Tokopedia Tbk for the 2019-2022 period and to find out how the liquidity ratio is seen from the current ratio, quick ratio, and cash ratio at PT. GoTo Gojek Tokopedia Tbk for the 2019-2022 period. The method used is quantitative descriptive analysis by analyzing the company's financial performance data from 2019 to 2022 using financial ratio analysis based on data listed on the Indonesia Stock Exchange and data from the official website of PT. GoTo Gojek Tokopedia Tbk. Based on the results of Liquidity Ratio analysis at PT. GoTo Gojek Tokopedia Tbk can be said to be good. The Profitability Ratio of PT GoTo Tbk is in a poor position, because it tends to decline below the industry average. The company has sufficient ability to guarantee and pay off its debts to creditors. The results of this financial ratio analysis can also be used as an indicator for investors who are interested in investing in PT GoTo Tbk because the company's financial condition remains strong.

BLU Financial Ratio Analysis for Performance Measurement

This research aims to determine the BLU Financial Ratio Analysis for Performance Measurement at Dr. Lung Hospital. M. Goenawan Partowidigdo Cisarua Bogor Based on Director General of Treasury Regulation No.36/PB/2016 for the 2019-2023 Period. This research uses quantitative descriptive research with data collection methods, namely field research, interviews, observation, documentation and literature review. Financial ratio analysis is carried out using liquidity, solvency, activity and profitability ratios, with 7 ratio indicators - financial ratios and BLU management compliance aspects used in research on measuring hospital financial performance, including cash ratio, current ratio, receivables collection period, turnover. fixed assets, compensation for fixed assets, equity compensation and PNBP income against operational costs. The results of the research show that the analysis of financial performance at RSPG Cisarua Bogor based on analysis of liquidity, solvency, activity and profitability ratios shows good performance and based on financial performance indicators of the hospital, the financial performance of RSPG Cisarua Bogor from 2019-2023 is included in the predicate of both A and AA.

Analysis Of Financial Ratios and Company Size As Determining Factors For Islamic Social Reporting Disclosure In Sharia Banks In Indonesia (Period 2015-2020)

This study investigates the determinants of Islamic Social Reporting (ISR) disclosure among Islamic banks in Indonesia from 2015 to 2020. Using financial ratios (ROA, CR, DER) and firm size as factors, the research explores their impact on the extent of ISR disclosures. The study employs quantitative analysis based on data from annual reports of Indonesian Islamic banks, applying regression models to test hypotheses derived from stakeholder theory, legitimacy theory, and resource dependency theory. The findings reveal that profitability and liquidity positively influence ISR disclosures, indicating that more profitable and liquid banks are more likely to engage in and report on social responsibility activities. In contrast, leverage shows a negative relationship with ISR disclosures, suggesting that highly leveraged banks disclose less about their social initiatives. Additionally, firm size positively correlates with ISR disclosures, highlighting that larger banks tend to provide more comprehensive reports on their social responsibilities. Theoretical implications suggest that Islamic banks strategically manage their financial and organizational resources to enhance legitimacy and stakeholder trust through transparent ISR disclosures. Practical implications underscore the importance of integrating CSR practices into business strategies to promote sustainability and accountability. The study contributes to the literature by providing empirical insights into ISR practices in Islamic banking and informs stakeholders about the factors influencing social responsibility disclosures.

ANALSIS KOMPARASI KINERJA KEUANGAN BANK MEGA SYARIAH MENGGUNAKAN METODE RGEC PADA MASA SEBELUM DAN SELAMA PANDEMI COVID-19

The COVID-19 pandemic has had an impact on all industrial sectors in Indonesia, one of which is the sharia banking sector. During the pandemic, banking performance experienced fluctuations in terms of deposits and debt financing; Bank Mega Syariah also experienced fluctuations in financial ratios and deposits, which could have an impact on the bank's financial performance. The purpose of this study is to evaluate Bank Mega Syariah's financial results utilizing the RGEC approach both before and after the COVID-19 epidemic. This study used quantitative research using a descriptive methodology. Data was acquired through the use of documentation methods. Financial ratio analysis utilizing the RGEC method is the data analysis method employed. The findings demonstrate that Bank Mega Syariah's financial performance, as measured by the RGEC technique, was superior to its pre-COVID-19 pandemic financial performance during the pandemic-affected period. This is shown by Bank Mega Syariah's ability to continue turning in a profit despite the COVID-19 pandemic's negative impact on the business environment. This accomplishment is demonstrated by the growth in several key business metrics, which were maintained, including bank profitability, finance distribution, and Third Party Funds.Keywords: Financial Performance; Bank Health Level; RGEC Method

Financial Performance Evaluation Using Profitability and Liquidity Ratio Analysis

A company's financial performance is an important indicator used to assess the financial health and operational efficiency of a business entity. In the context of PT Rig Tenders Indonesia Tbk, the consolidated financial statements as of March 31, 2024 showed an increase in current assets to IDR 330.44 billion from IDR 263.97 billion in the previous period. Although the company has recorded an increase in current assets and net profit, unstable global economic conditions can cause uncertainty in revenue and operating costs. This study uses a quantitative research design with a descriptive approach to evaluate the financial performance of PT Rig Tenders Indonesia Tbk through profitability and liquidity ratio analysis. The results of the study show that PT Rig Tenders Indonesia Tbk has good financial performance with high liquidity, significant profitability, and effective asset management. The company shows a strong ability to meet short-term obligations and generate profits from its assets and equity. A holistic and sustainable evaluation of financial performance is essential to maintain the stability and growth of the company in the future. The findings of this study provide important contributions both theoretically and practically in the field of financial management. Theoretically, this study enriches the literature on financial ratio analysis with a focus on the maritime industry. In practice, these findings offer solutions for companies in managing risk and improving operational efficiency through better asset management strategies and investment diversification. The limitation of this study lies in the use of financial data in one period that may not reflect long-term dynamics. For future research, it is recommended to examine financial data in a longer period and consider other external factors such as regulatory changes and global market conditions.

Working Capital Management of TATA Steel Limited

The current study focuses on Tata Steel Limited's working capital management. The primary goal is to execute a liquidity analysis on the company. Working capital management ensures that a business functions smoothly by keeping an eye on and making the most use of its current assets and liabilities. The liquidity analysis assists firm stakeholders in evaluating the company's liquidity status. The study is based on secondary data taken from the company's annual report. We analyzed the data using financial ratio analysis tools. The optimal amount of liquidity may reduce costs while contributing more to the success of a company.