Net Operating Margin Research Articles

Analysis of Capital Adequacy Ratio, Operating Expenses Operating Income, Non-Performing Financing, Financing to Deposit Ratio, and Net Operating Margin Return on Assets at Sharia Commercial Banks

This study was conducted to see the effect of Capital Adequacy Ratio (CAR), Operating Costs to Operating Income (BOPO), Non-Performing Financing (NPF), Financing to Deposit Ratio (FDR), and Net Operating Margin (NOM) on Return on Assets (ROA) at Sharia Commercial Banks. The analysis method used is panel regression, the data used is secondary data from the financial statements of Islamic Commercial Banks for the 2021-2023 period. The results of the analysis stated that CAR, BOPO, NPF, FDR, and NOM have a simultaneous influence on ROA in Sharia Commercial Banks. Partially CAR, NPF, and FDR do not affect ROA. While NOM has a significant positive influence on ROA, on the contrary, BOPO has a significant negative influence on ROA. The results of this study provide important information for bank management in managing these factors to improve financial performance and bank profitability.

The Influence of Financing, Service-Based Income, and Internal Factors on Net Operating Margin in Islamic Commercial Banks

The Influence of Financing, Service-Based Income, and Internal Factors on Net Operating Margin in Islamic Commercial Banks

Enhancing Financial Vulnerability Models for Non-Profit Organizations: Integrating Financial Ratios and Macroeconomic Indicators for Comprehensive Risk Assessment

Purpose: This research advances the financial vulnerability prediction model for Non-Profit Organizations (NPOs) by incorporating a comprehensive set of financial and macroeconomic indicators, aiming to refine risk management and strategic planning within the sector. Theoretical Framework: Building upon Tuckman and Chang (1991) foundational work, this study addresses the evolving financial landscape's complexities. It expands on traditional financial ratio analyses to include broader economic conditions affecting NPOs, recognizing the limitations of previous literature. Design/Methodology/Approach: The study analyzes financial data from two NPOs (2017-2021), using three models to assess the influence of internal financial ratios (e.g., Debt Ratio, Cash Ratio, Net Operating Margin) and external macroeconomic factors (e.g., inflation, GDP growth) on NPO financial vulnerability and performance. Findings: Results highlight a significant positive relationship between the Cash Ratio and Return on Assets, underscoring liquidity management’s importance for NPO sustainability. Other factors showed minimal impact, suggesting a nuanced approach to financial vulnerability. Research Implications: The findings emphasize the necessity of integrating financial ratios with macroeconomic indicators in NPO management strategies, offering a refined model for understanding and mitigating financial risk. Originality/Value: This study enhances the financial management literature for NPOs by incorporating macroeconomic indicators into vulnerability assessment models. It provides a comprehensive framework for robust financial planning, filling a crucial gap in non-profit financial analysis and contributing to the sector’s resilience.

TEST OF DIFFERENT LEVELS OF GENERAL BANKING HEALTH LISTED ON THE INDONESIAN STOCK EXCHANGE 2018-2022 USING THE RGEC METHOD

This research aims to analyze the comparative level of health of commercial banks using the RGEC method: (Risk profile, Good Cooperative Governance, Earnings and Capital). The use of the RGEC method has been determined by BI (Bank Indonesia) and has been used since 2012 and is stipulated in PBI number 13/1/PBI/2011. The objects used in this research are Islamic commercial banks with a total of 9 banks that have the largest assets and are registered on the BEI (Financial Services Authority) and have annual reports and GCG (Good Corporate Governance) reports. Research that uses quantitative methods uses comparative analysis and uses non-parametric tests. Based on the research results, show that the risk profile variable is assessed using LDR (Loan to Deposit Ratio), the GCG variable comes from PDN Net Open Exchange Position, the Earnings variable uses ROA (Return On Assets), the Capital variable is based on risk profile factors which are measured using CAR (Capital Adequacy). Ratio), Bank health variables are measured using NOM (Net Operating Margin). Variables that have ratios because this research uses ratio values as a comparison. Significant comparison results indicate that there are significant differences in each variable.

Integration of financing and macroeconomic shock in Islamic banking in Indonesia

Purpose – This study analyzes the relationship between Islamic banking financing and macroeconomic variables as well as its response to key economic variables.Methodology – The research design uses quantitative analysis with Islamic banking panel data for the period 2019-2022 with monthly data, and the study used the Vector Error Correction Model (VECM).Findings – Non Performing Financing (NPF) and Inflation negatively impact Islamic banking financing. Meanwhile, Third Party Funds (Dana Pihak Ketiga, DPK), Net Operating Margin (NOM), Return on Assets (ROA), Equivalent Rate of Musyarakah (ERPMUSY), and BI rates have a positive direction of significance for Islamic banking financing. In the Granger causality test, the interaction between the variables was unidirectional. While Islamic banking financing responds to shocks, many financings respond negatively to the shocks that occur.Implications – Islamic Financing responds significantly in a negative direction as a result of the shocks that occur in each variable and based on long-term estimates. Therefore, Islamic banking needs to supervise and resolve the internal influence of each bank, as well as the macro influence that can be felt in the long term on Islamic banking financing.Originality – This research integrates Islamic banking finance in Indonesia and examines how internal and macro variables can influence the financing disbursed to Islamic banking in Indonesia. This study also examines shocks between variables and tests the Granger causality between variables. Islamic banking needs to pay attention to many factors to minimize bad financing or lack of interest in applying for financing.

PENGARUH RASIO BIAYA OPERASIONAL PENDAPATAN OPERASIONAL (BOPO) DAN NON PERFORMING FINANCING (NPF) TERHADAP NET OPERATING MARGIN (NOM) PADA BANK UMUM SYARIAH YANG TERDAFTAR DI OTORITAS JASA KEUANGAN (OJK)

The Financial Services Authority is a state administration tasked with administering a system of regulation and supervision of all activities in the financial sector, such as the banking sector, capital market and non-bank financial services sector, such as insurance, pension funds, financing institutions and others. The phenomenon of a decrease in the net operating margin of Islamic banks attracted the author's interest to investigate further. This purpose of this study is to determine the effect of operating expense on operating revenue ratio (BOPO) and non performing financing (NPF) on the net operating margin (NOM) of Islamic Commercial Banks (BUS) registered on the OJK, either partially or simultaneously. This study uses quantitative methods with secondary data in the form of financial statements. The population are 12 BUS, but the sample used are only 6 BUS for 5 years with purposive sampling method. The analytical technique used is data normality test, product moment correlation test, multiple correlation test, multiple regression test, coefficient of determination test, t test and F test. The results of t test indicate that BOPO has a significant effect partially on NOM, while NPF has no significant effect partially on NOM. The results of the F test show that the BOPO and NPF have a significant effect simultaneously on NOM with a percentage coefficient of determination is 69.8%.

Comparative Analysis of the Financial Performance of Regional Development Banks before and after Conversion to Islamic Banks

In Indonesia, the government encourages converting conventional regional development banks into sharia regional development banks. Such banks should become the driving force and the stimulator of a sharia ecosystem in the region, especially to support the development of regional economic potentials and to become a prosperous and peaceful country. This study aims to analyze the financial performance of regional development banks that have become sharia regional development banks to identify their ability to continue to provide economic growth in the region. Considering the results of previous studies, the authors conduct a comparative analysis of the financial performance of regional development banks that have converted to sharia banks using the following variables: return on assets (ROA), return on equity (ROE), loan-to-deposit ratio (LDR) / financing-to-deposit ratio (FDR), net interest margin (NIM) / net operating margin (NOM) and ratio of operating expenses to operating income (BOPO). The analysis aims to determine whether there is a significant difference in the financial performance between conventional and sharia regional development banks. The population in this study is the regional development bank, with a sample of 3 banks that have converted into sharia banks (Bank Aceh Shariah, Bank NTB Shariah, and Bank Riau Kepri Shariah). The study uses secondary bank data from quarterly financial reports on the banks’ websites. The independent sample t-test is used to test the performance of conventional and sharia banks. The study results indicate no significant differences in the financial performance of regional development banks as measured using the financial ratio indicators ROA, ROE, and LDR. However, there are significant differences in measurements using the NIM and BOPO ratio indicators. Although the financial performance of sharia banks is still lower than that of conventional banks, they are showing an upward trend.

Research on the Optimization of Enterprise Resource Economic Benefits and Management Costs in Cloud Computing Environment

Abstract Based on cloud computing technology, this paper constructs a benefit-optimal enterprise resource scheduling model and an enterprise cost management prediction model to maximize the economic benefits of enterprise resources and optimize the management costs, respectively. Combining the improved greedy algorithm and the benefit function, a cloud resource scheduling algorithm based on benefit optimization is proposed, defining the benefit function about time and cost, and taking the highest user satisfaction as the optimal resource scheduling objective. A mathematical model for management cost prediction is constructed by using the fireworks algorithm to optimize the number of trees and the number of leaf nodes in the random forest, and the Informatica software is used to manage and integrate the enterprise source data. The performance of the company’s operating conditions after optimizing resource management and cost savings is explored as a case study of Company S. In 2023, the total asset turnover ratio of Company S increased to 21.45 from 0.48 in 2022, and the overall asset operating efficiency improved. Working capital rose to 262,852,200 yuan. The current ratio, quick ratio, and cash ratio improved, while the gearing ratio, equity ratio, and equity multiplier showed a downward trend. The net operating margin achieved the maximum profitability in the last three years, net total assets margin, and net equity margin, with an increase of 25.42%, 20.65%, and 31.49%, respectively.

The Effect of Capital Adequacy Ratio (CAR), Operating Expenses and Operating Income (BOPO), and Net Core Operating Margin (NCOM) on Financial Sustainability Ratio (FSR) in Islamic Banking in Indonesia for the 2017-2021 Period

This study aims to determine the effect of the Capital Adequacy Ratio (CAR), Operating Expenses and Operating Income (BOPO), and Net Core Operating Margin (NCOM) on the Financial Sustainability Ratio (FSR) partially and simultaneously. This study used a quantitative approach. The type of data used is secondary data obtained from the annual financial statements published on the official website of each Sharia Commercial Bank for the 2017-2021 period. The sample in this study amounted to 10 Sharia Commercial Banks in Indonesia selected by purposive sampling method. The data analysis techniques used are descriptive statistical analysis, classical assumption tests, hypothesis tests, and multiple linear regression tests with the help of SPSS software. The results showed that the Capital Adequacy Ratio (CAR) had a partial positive and insignificant effect on the Financial Sustainability Ratio (FSR). In part, BOPO has a negative and significant effect on the Financial Sustainability Ratio (FSR). Partially, the Net Core Operating Margin (NCOM) has a positive and significant effect on the Financial Sustainability Ratio (FSR). Simultaneously, the variables Capital Adequacy Ratio (CAR), Operating Cost and Operating Income (BOPO), and Net Core Operating Margin (NCOM) have a significant effect on the Financial Sustainability Ratio (FSR) and the value of the coefficient of determination (R²) of 0.608 or 60.8%.

Analisis Penggunaan Aset dalam Pengukuran Profitabilitas PT Adaro Minerals Indonesia Tbk

The primary objective of this study is to examine and assess the correlation between the utilisation of assets and the profitability of PT Adaro Minerals Indonesia Tbk, commonly referred to as AMI. The study employed a descriptive analytic methodology. Based on the data spanning from 2020 to 2022, it was observed that, with the exception of the working capital ratio in 2022, there was a consistent upward tendency in the account receivable turnover ratio, fixed asset turnover ratio, and total asset turnover ratio of the company. This pattern ultimately contributed to the overall stability of the company's profitability. The profitability ratios, including Gross Profit Margin (GPM), Net Profit Margin (NPM), Operating Margin, and Return on Assets (ROA) ratios, exhibit an upward trend for the period spanning from 2020 to 2022. The rise in the activity ratio can typically be attributed to a decline in firm assets, followed by an annual gain in income. The effective utilisation of assets inside a company exhibits a strong correlation with the company's profitability, which has demonstrated a consistent and upward trend over the past three years. The upward trajectory observed in the company's account receivable turnover, fixed asset turnover, total asset turnover, and cash turnover ratios has led to a corresponding enhancement in the company's profitability.

Analisis Perbandingan Kinerja Keuangan Bank Umum Konvensional Dengan Bank Umum Syariah di Indonesia Menggunakan Metode RGEC Periode 2018-2022

This research aims to determine the differences in financial performance between Conventional Commercial Banks and Sharia Commercial Banks for the 2018-2022 period using the RGEC method which consists of Risk profile, Good corporate governance, Earnings and Capital. Risk Profile is proxied using the Non Performing Loans (NPL) ratio and Loan to Deposit Ratio (LDR) for BUK and Non Performing Financing (NPF) and Financial to Deposit Ratio (FDR) for BUS, GCG is proxied using the GCG self assessment composite value, Earnings are proxied using Return On Assets (ROA), Return On Equity (ROE), Net Interest Margin (NIM) for BUK and Net Operating Margin (NOM) for BUS and BOPO, and Capital is proxied using the Capital Adequacy Ratio (CAR). The sample used in this research consisted of 10 Conventional Commercial Banks and 7 Sharia Commercial Banks. Samples were taken using a purposive sampling method based on predetermined criteria. The data analysis techniques used in this research are descriptive statistics, normality test, and Independent Sample t-Test. The results of the research show that there are significant differences between Conventional Commercial Banks and Sharia Commercial Banks in the financial performance ratios of NPL/NPF, ROA, ROE, NIM and BOPO. Meanwhile, in terms of LDR/FDR, GCG and CAR financial performance ratios, there are no significant differences between Conventional Commercial Banks and Sharia Commercial Banks.

Comparison of Financial Ratios Before and During the COVID-19 Pandemic in Islamic Banking in Indonesia

The COVID-19 pandemic has not only changed the global economic landscape but also forced Islamic banks to reevaluate their strategies, operations and policies. In this context, a comparison of financial ratios before and during the pandemic is very important to identify significant changes that have occurred in Islamic banking performance. This pandemic has forced Islamic banks to review their business strategies. They must consider how to deal with declines in economic activity, changes in consumer behavior, and market fluctuations. This study aimed to compare financial ratios before and during the COVID-19 pandemic on Islamic Banking in Indonesia. This type of research is quantitative research with a descriptive approach. In this study, the sample size was all Islamic commercial banks at core capital adequacy Bank 1 in Indonesia, namely the ratio of operational costs - operational income (BOPO), allowance for impairment losses (CKPN), financing to deposit ratio (FDR), net operating margin (NOM), non-performing financing gross (NPF Gross), net non-performing financing (NPF Netto), return on asset (ROA) and return on equity (ROE) in the period before the COVID-19 pandemic and during the COVID-19 period. There is no difference in the financial performance of Islamic banks as measured by the BOPO, NOM, NPF, and ROE ratios before and during the COVID-19 pandemic. There are differences in the financial performance of Islamic banks as measured by the CKPN, FDR, and ROA ratios before and during the COVID-19 pandemic.

The Efffect of Financial Ratio on Profitability with NOM and GWM as Moderating Factors of Banking Financial Ratios ( Study at NTB Syariah Bank)

Profitability ratio is the main ratio in measuring the achievement of banking performance.Profitability ratio is influenced by several other ratios such as CAR, FDR, BOPO and NPF. Thisstudy examines and analyzes the effect of Capital Adequacy Ratio (CAR), Financing to DepositRatio (FDR), Operating Expenses to Operating Income (BOPO) and Non Performing Financing(NPF) on the profitability of PT Bank NTB Syariah with NOM (Net Operating Margin) andMinimum Reserve Requirement (GWM) as moderating. This research is a quantitative study thatwants to reveal the effect of financial ratios on profitability. The data used is the publication reportdata of PT Bank NTB Syariah for the period 2019 to 2021. The data analysis technique in thisstudy used Partial Least Square (PLS). The results showed that CAR, BOPO, NPF had nosignificant and negative effect on ROA as indicated by the P value of 0.212, 0.505 and 0.360respectively, while FDR had a significant and positive effect on ROA as indicated by a P value of0.000. For moderator variables, namely GWM and NOM, both have no significant effect inmoderating the FDR and BOPO variables, indicated by the P value of 0.988 and 0.589,respectively.

Analisis Determinan Financing to Deposit Ratio Pada Bank Umum Syariah di Indonesia Periode 2017-2022

This study aims to determine the magnitude of the influence of the variables Third Party Funds (DPK), Capital Adequacy Ratio (CAR), Return on Assets (ROA), Net Operating Margin (NOM), and Inflation on Financing to Deposit Ratio (FDR) at at Sharia Commercial Banks in Indonesia 2017-2022 period. The population used is Sharia Commercial Banks in Indonesia. The data used is secondary data derived from the annual report for the 2017-2022 period which is available on each BUS website. The research method used is quantitative research with panel data regression analysis. The result of this study conclude that DPK has a negative no significant effect on FDR, CAR has a significant positive effect on FDR, ROA has a negative no significant effect on FDR, NOM has a positive no significant effect on FDR, and Inflation has a negative no significant effect on FDR. Car has a dominant effect on FDR.

THE EFFECT OF FINANCIAL RATIOS ON PROFITABILITY OF INDONESIAN ISLAMIC BANKING BEFORE AND DURING THE COVID-19 PANDEMIC (2018-2021)

This study aims to analyze the effect of financial ratios on profitability (NOM), and look at differences in profitability (NOM) in Islamic Banking before and during the Covid-19 pandemic (2018-2021). The sampling technique used purposive sampling. The selected sample is 10 Islamic Commercial Banks in Indonesia for the period from 2018 to 2021. Financial ratios are measured by ROE, NPF, FDR, and BOPO and profitability is measured by NOM. The data analysis method used is multiple linear regression and non-parametric test (Wilcoxon test). The results showed that ROE and BOPO had a positive effect on NOM, while NPF and FDR had a negative effect on NOM, then there is no difference in net operating margin (NOM) before and during the covid-19 pandemic.

The economic viability of the use of urea with urease inhibitor in cotton grown in the Cerrado of Central Brazil

The cotton crop has a high demand for nitrogen fertilizers. However, an adequate supply of this nutrient may be difficult in regions with a tropical climate, requiring the introduction of technologies that provide better nitrogen availability to plants, such as urease inhibitors. The study aimed to evaluate the economic viability of using urease inhibitor in the treatment of urea granules for fertilizing cotton grown in the summer in a tropical region. The experimental design was randomized blocks with four replications in a 3 × 5 factorial scheme. The treatments consisted of urea treated with 0.045% and 0.060% urease inhibitor (N-(n-butyl)thiophosphoric triamide - NBPT) and urea without urease inhibitor applied as topdressing, in doses of 0, 40, 80, 120 and 160 kg ha−1, divided into two applications, at 30 and 50 days after emergence. Fiber yield, effective operational cost, total operational cost, total cost, gross revenue, gross margin, net operational margin, net margin, profitability index, equilibrium price, and equilibrium yield were determined. In an agricultural year with rainfall close to the application of N in topdressing, the use of N at a dose of 120 kg ha−1 in the form of urea, associated with the urease inhibitor, promoted greater profitability of the cotton crop, as well as the use of urea regardless of the use of urease inhibitor. The urease inhibitor did not interfere with cotton fiber yield.

Rasio Keuangan Terhadap Profitabilitas dengan Nom dan Gwm Sebagai Pemoderasi Rasio Keuangan Perbankan

The Profitability Ratio is the primary ratio in measuring the achievement of banking performance. Several other ratios, such as CAR, FDR, BOPO, and NPF, influence the profitability ratio. This study examines and analyzes the effect of the Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Operating Expenses to Operating Income (BOPO), and Non-Performing Financing (NPF) on the profitability of PT. Bank NTB Syariah with NOM (Net Operating Margin) and Reserve Requirement (Minimum Statutory Reserve) as moderating. This quantitative research wants to reveal the effect of financial ratios on profitability. The data is from the PT Bank NTB Syariah publication report from 2019 to 2021. The data analysis technique in this study used Partial Least Square (PLS). The results showed that CAR, BOPO, and NPF did not have a significant and negative effect on ROA, shown by P-Value Values of 0.212, 0.505, and 0.360, respectively. In contrast, FDR had a significant and positive effect on ROA, indicated by P-Value Values of 0.000. For moderator variables, GWM and NOM have no significant effect in moderating FDR and BOPO variables, indicated by P-Value Values of 0.988 and 0.589, respectively.

Contributions of Internal and External Variables in Non-Performing Financing Bank Muamalat for the Period of 2005-2021

The purpose of this study is to describe the condition of internal and external variables for non-performing financing in the 2005-2021 period by using internal variables that are proxied by Operating Expenses (OE), Financing Deposit Ratio (FDR), Net Operating Margin (NOM), and Return On Equity (ROE), while external variables are proxied by Gross Domestic Product (GDP) and inflation. The method used in this research is descriptive quantitative by analyzing secondary data which is processed using Eviews 10 with the VECM method and using quarterly time series data from 2005-2021. The results of data processing using VECM show several findings, namely: the ROE, GDP, and inflation variables have a positive effect, then the FDR and NOM variables have a negative effect, while OE has no effect on non-performing financing in the long term, while in the short term all variables do not affect non-performing financing. performing financing. Meanwhile, based on testing using FEDV, the contribution to non-performing financing is OE (1.08%), FDR (0.89%), NOM (4.11%), ROE (0.95%), GDP (2.29%), and inflation (2.68%).

Islamic bank efficiency: an efficiency method with SFA

Judging from the financial ratios, the performance of Islamic banking in Indonesia was remarkably stable both before and during the Covid-19 pandemic. However, another thing is whether this condition could make Islamic banks continue to work effectively. This study aimed to measure the cost efficiency of Islamic commercial banks in Indonesia quarter I of 2019 – quarter IV of 2020 and analyze the influencing factors in cost efficiency. The study used a saturated sampling technique with a total sample of 14 Islamic commercial banks, while the efficiency level was determined using the Stochastic Frontier Analysis (SFA) method. It turns out that PT. Bank Muamalat Indonesia Tbk. has the highest efficiency value of 0.9284. Several banks with an efficiency value of more than 0.5 are PT. Bank Aceh Syariah, PT. Bank BNI Syariah, and PT. Bank Mega Syariah. In this study, only inflation variables affect efficiency. In contrast, bank size, Return on Assets (ROA), Net Operating Margin (NOM), Non-Performing Financing (NPF), Financing to Deposit Ratio (FDR) variables, Capital Adequacy Ratio (CAR), Gross Domestic Product (GDP), and the rupiah exchange rate don’t affect the efficiency. Overall, all the company's internal variables and environmental variables affect efficiency.

The effect of banking channels and efficiency indicators on bank profitability

This article proposes two models to analyze profitability banking. Using panel data methodology it’s analized the relationship between operational efficiency indicators and banking access channels alternative to the branch with ROA and ROE. The main findings are that Net Operating Margin (MNO) has a direct relationship. Net noninterest Margin (MNNI) and Asset Utilization (RA) have a negative impact on ROA. Regarding access channels, Automatic Teller Machines (ATMs) have a positive, albeit weak, impact. Point of Sale Terminals (POS) are significant but in reverse. As for ROE, MNO and MNNI are related in the same sense as ROA. The Capital Multiplier (MC) presents a negative relationship. Mobile Banking (NBM) and POS show a significant inverse relationship, while ATM is direct.