Net Operating Profit Research Articles

MANAJEMEN LABA PERSPEKTIF TEORITIS DAN EMPIRIS

Earnings management is managing income (cash inflow) and expenses (cash outflow) to ensure that the business generates a net operating profit. There are parties who define earnings management as a situation carried out by a manager to deceive other people, while other parties define it as a normal activity carried out by managers in preparing financial reports. The perspective approach is intended to understand that studying organizational theory is not just enough to use a single and unrecorded model of an organization's structure. Theoretical is the stage of research testing based on theory with research hypotheses so that this can always help when we try to imagine something or solve problems based on theory which must always be tested practically. Empirical is a research approach that prioritizes the use of real evidence and direct observation in generating knowledge. This research aims to identify earnings management perspectives, theoretical and empirical. In this research, the author used a qualitative descriptive approach. Qualitative descriptive research, namely a problem formulation that guides research to explore or photograph the social situation that will be researched thoroughly, broadly and in depth

Financial Performance Analysis With Economic Value Added On Telecommunication Companies Listed In BEI

This research describes the financial performance based on the Economic Value Added (EVA) method, which aims to know the condition of Net Operating Profit After Tax (NOPAT), Cost of Capital (COC) condition, and financial performance condition based on Economic Value Added (EVA) in telecommunications company which is listed on BEI. The sample using PT. Telekomunikasi Indonesia, PT. XL Axiata and PT. Indosat. on 2012-2016. This research uses a descriptive with quantitative approach. The result of the analysis shows that the condition of NOPAT PT. Telekomunikasi Indonesia and PT. XL Axiata is good and positive, while NOPAT PT. Indosat in 2013 is negative. The condition of COC for all companies is positive and fluctuating. EVA Condition for PT. Telekomunikasi Indonesia on 2012-2016 positive, which means EVA> 0. It shows that the company can add value for the company. EVA condition for PT. XL Axiata in 2012 and 2013 was positive or EVA> 0, on 2014 and 2015 EVA was negative or EVA < 0 and in 2016 EVA had a positive result. PT. Indosat is only able to make value for the company just on 2012 and 2016 with EVA positive or EVA> 0, then on 2013 to 2015 the result of EVA is negative or EVA < 0 which means the company cannot make a value-added for the company.

Applying the empirical average cost of capital: Estimating the cost of funds at the firm and industry levels

ABSTRACT This article develops a new measure of the cost of capital, the empirical average cost of capital (EACC), which is consistent with existing methods of calculating the weighted average cost of capital but uses information from the firm’s financial statements and requires fewer and less subjective inputs. Our model combines the regression-based approach of asset pricing models such as the CAPM with the Implied Cost of Capital’s reliance on accounting and market price data. The EACC model is very flexible and can identify the optimal balance between accounting- and market-based data that should be used when estimating the cost of capital for individual firms as well as for industries and larger economic sectors. We find the EACC yields forecasts of future net operating profit after taxes that compare favourably to five published measures of the weighted average cost of capital and is robust to several alternative tests. Overall, the results suggest the EACC can be an effective complementary method for corporate managers, investors, financial analysts, accountants, regulators, and academics in deriving estimates of a company’s or industry’s cost of capital.

Do Banks in Saudi Arabia Manage Earning Using Discretionary Components?

This study aimed to examine whether banks in Saudi Arabia used discretionary components for loan and investment portfolios in managing earnings as this study was conducted on all banks registered on Saudi Arabia Stock Market (TASI) for the period 2013-2022. The study also aimed to determine the impact of the discretionary component of the allocations for loan losses on both profitability metrics and market metrics. To achieve objectives of the study, two metrics were used as proxies for managing earnings. The first metric used both the discretionary components of the allocations for loan losses and the realized gains and losses of investment portfolio. The second metric used only the discretionary component of the allocations for loan losses of the credit portfolio. The study relied on the quantitative approach as the study used regression models and correlations to test the study’s hypotheses. The results of the first metric of earnings management indicated that the determinants of earnings management were financial leverage, total assets, net operating profit, GDP growth rate, while the capital adequacy ratio was not one of the determinants of earnings management. The results of the second metric of earnings management indicated that the discretionary component of the allocations for loan losses had positive impacts on return on assets, return on equity, earnings per share, share price and annual share returns. That is, investors realized that the allocations for loan losses contained a discretionary component that will be converted into future earnings and cash flows, and investors look at the discretionary component positively. According to the signal theory, Saudi banks used the allocations for loan losses to transmit positive signals about the levels of the profits in the future. The results of this study have significant implications on the decisions of investors, supervisory authorities, bank managers and external auditors.

Do companies that generate profits make economic value added?

This paper focuses on determining the differences between economic value added (EVA), net operating profit after tax (NOPAT), earnings before interest and taxes (EBITDA), and net income or loss for non-financial business entities operating in the Republic of Croatia in the period 2002–2021. The main objective of this paper is to determine whether non-financial activities create economic value added, and rank them according to selected indicators based on EVA. Research results indicate that there were only 27 out of 309 cases where EVA was positive, indicating that only the information and communication sector generated, on average, positive EVA during this twenty-year period. Positive EVA was generated in certain years in companies conducting human health and social work activities, education, mining, and quarrying, as well as in wholesale and retail trade activities, but the average EVA for this twenty-year period in these sectors was negative. At the same time, net income was achieved in 246 cases, and NOPAT in 285. Meanwhile, EBITDA was positive in all cases, demonstrating an obvious discrepancy between EVA and other financial performance measures. Correlation analysis results indicate that there is a statistically significant moderate correlation between EVA and net income/loss, although the correlation is generally stronger between EVA and EBITDA-based indicators. According to research results, the answer to the question in the title of this paper is negative, emphasizing the possibilities of intensive introduction of EVA as a financial performance indicator.

ANALISIS PERBANDINGAN RASIO PROFITABILITAS SEBELUM DAN SELAMA PANDEMI COVID - 19 PADA PERUSAHAAN UMUM DAMRI

This study was conducted to compare profitability ratios using Return On Assets (ROA), Return On Equity (ROE), Net Profit Margin (NPM), and Operating Profit Margin (OPM) methods in Perum Darmri before and during the covid-19 pandemic. The data used were secondary data obtained from the official website of Perum Damri using Perum Damri's financial reports for 2018-2021. The analysis technique used was quantitative comparison. The results showed that there was no difference in the profitability ratios of the Return On Assets (ROA), Return On Equity (ROE) and Net Profit Margin (NPM) methods at the beginning of the pandemic covid-19 and during the pandemic covid-19 only the Operating Profit Margin (OPM) there was a difference at the beginning of the pandemic covid-19 from another method. At the beginning of the pandemic covid-19, Perum Damri experienced an increase in Return On Assets (ROA), Return On Equity (ROE), and Net Profit Margin (NPM) methods but experienced a decrease in the Operating Profit Margin (OPM) method. During the pandemi covid-19 or during the pandemic covid-19, Perum Damri experienced a decrease in each ratio method used, both Return On Assets (ROA), Return On Equity (ROE) and Net Profit Margin (NPM) and Operating Profit Margin (OPM).

Day-ahead Optimal Scheduling Strategy of Biomass-based Integrated Energy System

Under the background of carbon neutrality, biomass-based integrated energy systems are gradually becoming a hot spot for research. This paper uses a multi-energy flow biomass-based integrated energy system of electricity, heat, gas, and fertilizer as the research object. Firstly, the characteristics of the main equipment of the system are analyzed, and the corresponding mathematical model is established. Secondly, with the integrated goal of maximizing net operating profit and CO2 emission reduction, a day-ahead operation optimization model of a biomass-centered integrated energy system is established. Finally, the advantages of the proposed system and the characteristics of each equipment output in the day-ahead dispatch are analyzed based on the calculation examples.

СТРАТЕГІЧНІ ПЕРСПЕКТИВИ РОЗВИТКУ АГРОПРОДОВОЛЬЧОГО СЕКТОРУ В УМОВАХ ГЛОБАЛЬНОЇ ЦИРКУЛЯРНОЇ ЕКОНОМІКИ

The article establishes that an urgent priority direction for Ukraine is to ensure the appropriate level of agriculture competitiveness under the conditions of Industry 4.0, i.e. “Agriculture 4.0” and the global circular economy. Important strategic measures on the way to change have been highlighted. It has been found that achieving the competitiveness level of the economy’s agri-food sector under the global circular economy conditions involves solving a number of strategic tasks: 1) an innovative breakthrough that can be achieved with the help of the “green revolution” in the field of agricultural technologies; 2) modernization of the logistics infrastructure, which will be a guarantor of the rural area’s social programs implementation; 3) applying new approaches to planning and controlling the flow of agricultural products from agricultural producers to consumers, implementing logistics strategies based on the principles of adaptability and flexibility. Various approaches to the interpretation of the concept essence “logistics strategy” are presented. It has been proven that the profitability of agricultural enterprises is affected by the creation and modeling of economic added value. It was found that three key indicators are used during the calculations: net operating profit after taxes, capital invested in the enterprise and the weighted average cost of its attraction. The main tasks that stimulate production and trade in individual links of value-added chains are highlighted: first, in the production segment of the value-added chain: (1) cultivation, harvesting, processing and storage of agricultural products with a lower degree of value addition; (2) domestic norms in the field of standardization and certification of raw materials, materials and semi-finished products; secondly, in the marketing segment of the value-added chain (relevant final sales markets and the sphere of trade). Based on the guidelines for the development of Ukraine until 2030, the actual data for five years were analyzed, in particular, the indicators established at the national level. Corresponding positive strategic prospects for the development of the agri-food sector under the conditions of the global circular economy have been formed.

Examining the Impact of Working Capital Management Approaches on Financial Performance in the Textile Sector of Pakistan

Efficient management of operational funds holds immense importance for enterprises. The calculation of net working capital, achieved by subtracting current liabilities from assets, carries significant weight. Aspects such as durations for collecting and disbursing funds, the rate of inventory rotation, the transformation of cash, and the cycle of trade play a pivotal role in determining the level of profitability. This research undertook an evaluation of their influence on the profitability of Pakistan's textile industry, utilizing data from 10 publicly listed companies and subjecting them to thorough panel regression analysis. The findings brought to light that the Average Collection Period (ACP) exhibited an inconsequential and adverse impact on Net Operating Profit (NOP). Conversely, the Average Payment Period (APP) demonstrated a substantial reduction in NOP. While Inventory Turnover (ITID) displayed an insignificant amplification in NOP, Cash Conversion Cycle (CCC) exhibited a positive correlation with the firm's financial performance in distinction to Net Trading Cycle (NTC) yielded a detrimental effect.

Discussion on EVA Performance Evaluation Standard of Central Enterprise Based on WACC Valuation

Weighted average cost of capital (WACC) is a method of calculating a company's cost of capital by weighting the weight of each type of capital to the total source of capital.Economic Value Added (EVA) is the net operating profit after tax of an enterprise minus the opportunity cost of all invested capital including equity and debt. Given the "one-size-fits-all effect" of WACC in the evaluation of central enterprises' performance, this paper uses PetroChina as an example to verify whether there is an "inflated" or "overestimated" EVA in the evaluation of central enterprises' performance through the valuation of WACC. The results show that the relatively small WACC in EVA performance evaluation directly leads to the EVA overstatement of PetroChina. National industries are classified according to the competitiveness of industries in terms of economic value added creation and contribution. Replacing the current EVA evaluation criteria with EVA rate evaluation criteria or Delta EVA evaluation criteria is a more practical idea to solve the problem of "overstated" or "overestimated" national EVA.

Comparative Analysis of the Economic Viability between Integrated and Conventional Production in Semi-Intensive Shrimp Farming of Litopenaeus vannamei in Brazil

We performed simulations to analyse the economic viability between conventional production (CP) and integrated production (IP) regimes of marine shrimp in ponds under semi-intensive culture in Brazil. The structural and operational characteristics of CP and the zootechnical parameters associated with shrimp production, were defined based on a systematic literature review through the application of the PRISMA method. The structural and operational characteristics, management strategies and zootechnical parameters of integrated production were estimated based on the principles and practices determined by Brazilian legislation and IP international concepts applied for shrimp farming presented in the technical and scientific literature. Comparisons between economic and financial viability of CP and IP were performed through the diagnosis (inventory) of the activities, processes, equipment and inputs that compose the operation of a hypothetical semi-intensive shrimp pond farm. In addition to the cash flows prepared for the two scenarios, the net present value (NPV), gross revenue (GR), operational profit (OP), payback (PB), benefit/cost (B/C) and internal rate of return (IRR) of the CP and IP were estimated. Implementation of specific technical standards (STS) represented the highest costs. The NPV of the CP was USD 758,147.70 and of the IP was USD 97,452.54. The GR was USD 545,2565.00 for CP and USD 364,422.24 for PI. The PF estimated for the CP was USD 217,300.56, whereas that for IP was USD 68,416.72. The PB was estimated for one year for both scenarios. The B/C ratio was 1.66 for CP and 1.23 for IP. The IRR values for CP and IP were 35% and 7%, respectively. IP presented lower economic and financial indicators than those of CP. The results obtained here may be useful as a starting point for the reduction of economic differences between conventional and integrated ventures and for the feasibility of integrated production in shrimp farming.

PENGARUH RASIO KEUANGAN TERHADAP HARGA SAHAM PERUSAHAAN SUBSEKTOR PERTAMBANGAN BATU BARA

The purpose of this study was to determine the effect of the Current Ratio, Debt to Equity Ratio, Return on Assets, Return on Equity, Net Profit Margin and Operating Profit Margin on stock prices at Coal Mining sub-sector company. The population used in this study are coal mining sub-sector companies listed on the Indonesia Stock Exchange from 2014-2020 and purposive sampling as the sampling method. The sample criteria that meet as many as 8 companies used in this study are from the financial statements of companies in the coal mining sub-sector listed on the Indonesia Stock Exchange. This study uses multiple linear regression method showing that the current ratio, debt to equity ratio, return on equity have an influence on stock prices. Current ratio, debt to equity ratio and roe have a negative effect to stock price because the higher liquidity also means the company have many idle funds. Higher DER and ROE also indicate the company less efficient in their activity.

INFLUENCE OF FORECROPS AND SUPPLEMENTARY FERTILIZATION OF WINTER WHEAT AT DIFFERENT PERIODS OF ITS VEGETATION ON YIELD FORMATION AND GRAIN QUALITY

Research on the study of effectiveness of nitrogen fertilization on productivity and quality of winter wheat grain was conducted in the conditions of the Volga region in 2017-2021. A two-factor experiment was set on leached heavy loamy black soil (humus - 6.5% by Tyurin; pH of the salt extract - 6.3-6.5; P2O5 - 185-216; K2O - 80-85 mg per 1 kg of soil) according to the following scheme: I - forecrop (factor A): complete and sown fallow; II. fertilization with ammonium nitrate (factor B): 1. control (N0); 2. autumn (N34); 3 with a seeder (N34); 4. early spring (N34); 5 early spring (N34) + at the shooting stage (N34); 6 early spring (N34) + at the shooting stage (N34) + N15at the heading phase. Lack of moisture at the start of the experiments did not allow to obtain friendly seedlings (complete fallow - 75.9-78.3%, sown - 71.7-75.2%). Frequent temperature fluctuations at the beginning of the vegetation season and lack of precipitation during the period of grain filling had a negative impact on survivability of plants by the harvesting time (complete fallow - 44.9-50.3%, sown - 29.2-34.2%). The highest grain yield (4.48 t/ha) was formed when winter wheat was sown on complete fallow in combination with fertilizer application (N34+N34+N15), which exceeded the control by 1.11 t/ha (34.9%). High content of protein (13.7%) and gluten (31.8%) provided the variant with early spring fertilization in a scattered way at a dose of N34. An increase offertilization frequency led to a decrease of protein (13.3%) and gluten (30.4%). Cultivation of winter wheat on sown fallow reduced yield by 1.19 t/ha (36.2%) and quality parametres (protein 12.2%, gluten 26.9%) of the grain. The highest net operating profit (25,883 rubles/ha) and high profitability (136.8%) of the grain were obtained when sown on complete fallow in combination with fractional fertilization at different stages of plant development. The cost of 1 ton of grain was 4220 rubles.

The impact of corporate social responsibility on financial performance – Infosys way

The current study sought to examine the effect of Corporate Social Responsibility (CSR) on the financial performance of Infosys Ltd over five years spanning 2016-17 to 2020-21. To assess financial performance, we employ various profitability and liquidity ratios. The findings show that CSR has a high positive impact on Return on Capital Employed and a high negative impact on Return on Net Worth, Operating Profit, Net Profit, Current Ratio, and Liquid Ratio. In conclusion, CSR had no significant impact on Infosys Ltd.'s financial performance during the study period.

CULTIVATION EFFICIENCY OF "HELIOS" COMMON BARLEY VARIETY ON DIFFERENT BACKGROUNDS OF MINERAL NUTRITION AND SEEDING AMOUNT

Recently, agricultural producers of Mordovia began to cultivate common more often. In order to form its maximum productivity, it is important to identify its responsiveness to fertilizers and seeding amount in the conditions of the region, which is important in scientific and practical agronomy. Our studies were carried out to reveal potential productivity, grain quality, economic and energy parametres of common barley of "Helios" variety depending on technology elements (fertilizers and seeding amount). Experimental work was carried out on leached black soil in State Unitary Enterprise "Lukhovskoye" of the urban district of Saransk, the Republic of Mordovia, in 2016-2018. "Helios" common barley variety was under study using field and laboratory methods, a two-factor field experiment was set according to the following scheme: factor A (mineral nutrition level) 1.1 – without fertilizers (control); 1.2 - N30P30K30, 1.3 - N60P60K60, 1.4 - N60P60K60, 1.5 - N90P90K90; factor B (seeding amount, mln pcs/ha) 2.1 – 2.5; 2.2 - 3.0; 2.3 - 3.0; 2.4 - 3.5; 2.5 - 4.5 Agrochemical soil composition was typical for this type. It was revealed that the maximum grain yield was in case of application of N60P60K60, N90P90K90 and the sowing of 4.0 and 4.5 million/ha of seeds (2.74 - 3.05 t/ha), which was formed due to density increase of productive stems; maximum value of gross output was noted in case of application of N90P90K90 and sowing of 4.5 million/ha of seeds (51850 rubles/ha); the highest net operating profit (26,980 rubles/ha) and energy balance (31.4 GJ/ha) was achieved in case of application of N30P30K30 and sowing of 4.5 million/ha of seeds.

Financial Performance and Working Capital Management Practices in the Retail Sector: Empirical Evidence from South Africa

This study examines the relationship between the financial performance and working capital management practices of South African retail firms listed on the Johannesburg Stock Exchange. The study sample comprised a panel of 16 South African retail firms for the period 2010–2019. A fixed-effects estimator was employed in the analysis. The working capital management was proxied by average age of inventory (AAI), average collection period (ACP), average payment period (APP), and cash conversion cycle (CCC), while the financial performance was proxied by net operating profit margin (NOPM), return on assets (ROA), and return on equity (ROE). The key findings of the study documented the following: (1) There is a negative relationship between average collection period and financial performance. (2) A negative relationship between average age of inventory and financial performance measures (NOPM and ROA) was found. (3) The average payment period was found to be negatively related to return on equity. (4) The cash conversion cycle and net operating profit margin variables were found to be negatively related. The study concludes that working capital management practices influenced the financial performance of the South African retail firms. It is recommended that South African retail firms observe prudent optimal working capital management practices, as these influence their financial performance.

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 effectiveness of the use of Energia-M growth regulator in the protection system of winter wheat

In the formation of the winter wheat yield, the protection of the crop from pests, stress, pesticides and adverse abiotic factors is one of the important elements of the technology. To increase yield and reduce the impact of adverse factors in winter wheat protection systems, plant growth regulators are used. In the conditions of the Ryazan region in 2019-2020, the effectiveness of the use of tank mixtures of pesticides with the growth regulator Energia-M (0.01 kg/ha) in the protection systems of winter wheat of the Danaya variety was studied. In the variant with the use of a tank mixture of pesticides with a growth regulator, a statistically significant excess of yield was noted in comparison with the control (without treatment) by 1.4 t/ha (31 %) and with the variant with treatment using a tank mixture without the use of a growth regulator - by 0.9 t/ha (18 %). Under the influence of the plant growth regulator, a decrease in the negative impact of pesticides on growth processes, an increase in crop yield by 18 % due to the formation of an additional number of productive stems (80 pcs / m2 ) were noted and a higher net operating profit was obtained compared to the protection system without a plant growth regulator.

Assessing the economic impact of diseases in Mediterranean grow-out farms culturing European sea bass

The aim of this work is to propose a novel and formal approach to evaluate the direct costs of diseases caused by different pathogens as well as their economic impact on typical Mediterranean grow-out farms culturing European sea bass under different scenarios of production related to the biomass produced (farm size) and the size of the fish produced (production strategy). We employ a deterministic static model to simulate the annual income statement of those facilities to evaluate the direct costs caused by different diseases as well as, through a partial budget and sensitivity analyses, the economic impact of them. An important conclusion of this work is that the profitability and economic viability of sea bass grow-out farms suffering recurrent outbreaks of diseases caused by different pathogens depend on the farm typology (farm size) as well as the decisions taken by owners/investors about the size of the fish produced and sold in the market. Our estimations show that as the larger is the farm and the size of the fish produced, the larger are the direct cost of a disease outbreak. However, the economic impact on the net operating profit is significantly worse as smaller is the farm and smaller the fish produced. The conclusions of this research stress the need for small producers to pay attention and devote resources to prevent and treat disease outbreaks.

ПЕРСПЕКТИВЫ ИСПОЛЬЗОВАНИЯ МАСЛИЧНЫХ КУЛЬТУР В СЕВООБОРОТАХ ЛЕСОСТЕПНОЙ ЗОНЫ ПОВОЛЖЬЯ

An increase of biological diversity of field crops is relevant for modern agriculture. The aim of our study was comparative assessment of productivity of oilseeds (oil flax, white mustard and spring rape) and substantiation of primary soil tillage technology and plant protection during crop cultivation in the foreststeppe zone of the Volga region. The research results showed that the growing season of white mustard was 87-99 days, oil flax - 97-106 days and spring rape - 97-103 days. The period from harvesting to winter wheat sowing was 12-20 days for oil flax, white mustard - 20-30 days, for spring rape - 14-20 days, which makes it possible to use these crops as forecrops for winter grain crops. When cultivating oil flax, white mustard and spring rape, combined system of soil tillage in crop rotation is more effective, where, in comparison with the minimum tillage of the soil, the seed yield increased (by 8.4-23.7%), as well as vegetable fat (by 16.9- 30.5%). The adaptive integrated plant protection system (a combination of agrotechnical, biological and chemical plant protection methods) was more effective in comparison with herbicide usage. Evaluation of economic efficiency showed that cultivation of spring rape provides a higher level of income in comparison with other crops. Combined tillage and the protection level of standard agricultural technologies (only herbicide usage) ensured an increase of net operating profit per hectare, therefore, the substantiation of plant protection system should be carried out with egad to economic limits of harmfulness.