Net Profit Margin Research Articles

LQ45 Stock Recommendations with Fundamental Analysis Using the Simple Additive Weighting Method

Shares are a sign of ownership of a person or entity in a company or limited liability company. Shares are in the form of a piece of paper that explains that the paper's owner is the owner of the company that issued the securities. In the Indonesia Stock Exchange (IDX) there are several kinds of stock indices, one of which is LQ45. It is known that until 2020 there were 2.48 million investors in the capital market. However, it should be noted that of the large number of investors, 85% to 90% of investors experience failure or loss. This happens because investors do not have adequate skills and knowledge in investing in stocks. Therefore, a system is needed that can assist in determining the selection of LQ45 stocks, namely a decision support system (DSS). This system was built web-based using the Simple Additive Weighting (SAW) method to determine the order of the most recommended stocks in the garden. This study uses 45 stocks as alternative data and 5 selection criteria, namely Return on Assets (ROA), Price to price-to-earnings ratio (PER), Price to Book Value (PBV), Net Profit Margin (NPM), and Debt to Equity Ratio (DER). The implementation of the SAW method on the system produces a sequence of LQ45 stock recommendations, namely Adaro Energy Indonesia as the best alternative with the highest preference value of 0.925.

Pengaruh Net Profit Margin, Debt Equity Ratio dan Current Ratio Terhadap Harga Saham Perusahaan Sektor Kesehatan yang Terdaftar di Bursa Efek Indonesia Tahun 2020 – 2023

This study is based on the large public attention to investment, especially to investment instruments such as stocks. In addition, the trend of a healthy lifestyle that is currently popular and the health transformation carried out by the government make the shares of health sector companies interesting to pay attention to. This study was aims to analyze and determine the effect of Net Profit Margin (NPM), Debt to Equity Ratio (DER) and Current Ratio (CR) simultaneously or partially on stock prices. The research method used in this study is a quantitative research method. The population used in this study were companies in the health sector listed on the Indonesia Stock Exchange in 2020-2023. There are 33 companies in the health sector listed on the Indonesia Stock Exchange. The sampling technique in this study used a purposive sampling technique with the number of selected company samples being 11 companies. The data used in this study are secondary data from financial data on the Indonesia Stock Exchange contained in the company's annual report. The variables tested in this study are Net Profit Margin (NPM), Debt to Equity Ratio (DER), Current Ratio (CR) and stock price. The data collection technique used in this study uses documentation techniques from the company's annual financial report. The data analysis technique used in this study is multiple linear regression.The results of this study show that Net Profit Margin (NPM), Debt to Equity Ratio (DER), and Curretn Ratio (CR) Simultaneously have a significant effect on stock prices. Partially, Net Profit margin (NPM) and Debt to Equity Ratio (DER) partially does not have a significant effect on stock prices. Meanwhile, Current Ratio (CR) partially have a significant effect on stock prices.

Pengaruh Debt to Equity Ratio, Net Profit Margin, Price to Earning Ratio dan Current Ratio terhadap Return Saham

The capital market, which is a vital instrument in the modern economy, serves as a meeting place for the supply and demand of investments. Among the various sectors in the capital market, the property and real estate sectors play a significant role, especially in the economy of a country. The purpose of this study is to determine the influence of Debt to Equity Ratio, Net Profit Margin, Price to Earnings Ratio, and Current Ratio on Stock Returns. This research employs a quantitative method and secondary data. The population consists of 89 Property & Real Estate companies listed on the Indonesia Stock Exchange (IDX) from 2021 to 2023, with a sample size of 91 company data points obtained using purposive sampling technique with unbalanced panel data. Based on data analysis using SPSS Statistics 25, the results indicate that Net Profit Margin has a positive and significant effect on Stock Returns, while Debt to Equity Ratio, Price to Earnings Ratio, and Current Ratio do not have an effect on Stock Returns.

The Effect of Debt to Equity Ratio (DER), Return on Asset (ROA), Liquidity, and Net Profit Margin (NPM) on Company Value

The purpose of this study was to determine the effect of Debt to Equity Ratio (DER), Return On Asset (ROA), liquidity, and Net Profit Margin (NPM) on firm value in Real Estate and Property Companies listed on the Indonesia Stock Exchange in the period 2020-2022. The method used in this research is quantitative method. This study uses a sample research method totaling 34 companies selected using purposive sampling method with a total of 81 observation data free from outlier data. This study uses multiple linear regression analysis to test the effect of the independent variable on the dependent variable. The results of this study indicate that Debt to Equity Ratio (DER) has a significant positive effect on firm value, Return On Asset (ROA) has no effect on firm value, liquidity has no effect on firm value, and Net Profit Margin (NPM) has no effect on firm value.

Analysis of Financial Statements to Assess the Profitability of PT Ace Hardware Indonesia Tbk for the Period 2019-2023

In an ever-evolving business landscape, the ability to assess a company's financial health is becoming increasingly crucial. The company's ability to generate profits is one of the main indicators of operational success and attractiveness for investors. PT Ace Hardware Indonesia Tbk, as one of the main players in the home and lifestyle retail industry in Indonesia, is interesting to study more deeply regarding its financial performance, especially from the aspect of profitability. Financial statement analysis is a key instrument in assessing the financial health and growth prospects of this company. This study comprehensively examines the financial statements of PT Ace Hardware Indonesia Tbk over a five-year period, from 2019 to 2023. The analysis method used is financial ratio analysis with a focus on profitability ratios such as Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM). The data used is sourced from the company's audited annual financial statements. The results of the study show that the profitability of PT Ace Hardware Indonesia Tbk fluctuated during the period. There was a significant decline in 2020 due to the pandemic. This study concludes that PT Ace Hardware Indonesia Tbk's financial performance, as measured by Net Profit Margin (NPM), Return on Asset (ROA), and Return on Equity (ROE), is still in the poor category.

UKURAN PERUSAHAAN MEMODERASI PROFITABILITAS, LIKUIDITAS, DAN LEVERAGE TERHADAP HARGA SAHAM

Changes in share prices show positive sentiment towards the global economy, improvement in the domestic economy, and continued improvement in company performance. Therefore, stock price changes should be taken into consideration. This research aimed to examine the effect of profitability ratio, liquidity, and leverage on the stock price with the firm size as a moderating variable at the Food and Beverages companies listed on the Indonesia Stock Exchange (IDX). The profitability used return on asset, return on equity, net profit margin, earning per share, quick ratio, and cash ratio. Moreover, the liquidity had a current ratio. Then, leverage used debt to asset ratio, debt to equity ratio, long term debt to equity ratio, and time interest earned. Furthermore, the research was quantitative. There were 160 data samples of Food and Beverage companies listed on the Indonesia Stock Exchange (IDX). Additionally, the data analysis technique used Partial Least Square (PLS). The result showed that profitability affected the stock price. However, both liquidity and leverage did not affect the stock price. In addition, firm size was able to moderate the effect of profitability on stock price. In contrast, firm size was not able to moderate the effect of liquidity on stock price. On the other hand, firm size was able to moderate the effect of leverage on stock price.

Dissecting Indonesian Insurance Profitability and Efficiency: Du Pont Diagnostic Tool.

This research compares the financial performance of insurance companies in Indonesia using the Du Pont method, identifies the determinants of differences in profitability and efficiency, and provides strategic recommendations. The methodology involves analyzing the 2023 audited financial statements of PT Asuransi Dayin Mitra Tbk and PT Asuransi Bintang Tbk as samples, applying the Du Pont method, financial ratios, and qualitative analysis. The results reveal a significant difference in profitability, with PT Asuransi Dayin Mitra Tbk excelling in net profit margin, asset turnover, and a conservative capital structure, while PT Asuransi Bintang Tbk outperforms in underwriting risk management, claims handling, and aggressive marketing strategies. Strategic recommendations include maintaining strengths, exploring revenue growth, enhancing cost efficiency, and adjusting capital structure. This research contributes to understanding the dynamics of financial performance in the Indonesian insurance industry.

Revealing the secrets of working capital: A comparison between sharia-compliant and conventional firms

This research compares the performance of sharia-compliant (SC) and non–shariah-compliant (non-SC) firms by examining the impact of working capital on the return on assets, the return on equity, and the net profit margin. The dataset, based on the Dow Jones Islamic Market Index (DJIMI) standards, is divided by the leverage ratio and includes PSX-500 firms listed in the Pakistan Stock Exchange from 1996 to 2020. Our findings reveal that working capital has a significant and positive effect on all firm proxies, among which non-SC firms outperform SC firms because of their access to funds for business operations. SC firms face restrictions in obtaining funds from conventional banks. Our study has many implications. As liquidity injection is crucial for growth, policy makers should focus on developing novel credit instruments that are SC to address financing needs and boost business operations.

Faktor-Faktor Profitabilitas yang Mempengaruhi Tax Avoidance

This study aims to determine the profitability factors of tax avoidance. The research method used in this study used secondary data taken from the official website of the Indonesia Stock Exchange and the website of each company. The population in this study is consumer non-cyclicals companies listed on the Indonesia Stock Exchange for the period 2016-2022. The sampling method in this study is purposive sampling. Companies that meet the criteria are 13 companies from a total population of 118 companies, so that the total number of samples in this study is 91 company data that meet the criteria. The variables used in this study are gross profit margin (X1), net profit margin (X2), return on investment (X3), return on equity (X4) and earning per share (X5) as independent variables and tax avoidance (Y) as the dependent variable. The data analysis technique used is regression analysis of panel data using statistical eviews software. The results of this study state that: Net profit margin affects tax avoidance. Gross profit margin, return on investment, return on equity and earnings per share have no effect on tax avoidance. Gross profit margin, net profit margin, return on investment, return on equity and earning per share simultaneously affect tax avoidance.

DO STOCK INVESTMENT STRATEGY AFFECT STOCK PRICES? A CASE STUDY OF SHARIAH-COMPLIANT COMPANIES IN MALAYSIA

This study aims to analyze how the stock market investment strategy using fundamental analysis affects stock prices. Fundamental analysis is an approach used to assess the intrinsic value of a stock based on the company's fundamental factors, including financial statements. This study utilizes historical stock data from 170 Shariah-compliant publicly listedcompanies on Bursa Malaysia and applies various financial ratios and stock valuation methods, such as net profit margin (NPM), price earnings ratio (PER), current ratio (CR), dividend payout ratio (DPR), earnings per share (EPS) and firm size (FS). The sample consists of 170 Shariah-compliant firms from all sectors except for the financial sector of Bursa Malaysia and 20 years maintained listed as status of Shariah-compliant Firms. This research employs panel data estimation techniques for regression analysis with robust panel data estimation technique for statistical inferences. The results indicate that PER, CR, EPS and FS have a positive effect on the stock price. This result confirms that higher in price earnings ratio, liquidity, earnings per share and firm size can increase stock price. The results also found that that NPM and DPR are negatively significant effect to the stock price of Shariah-compliant companies in Malaysia. This research contributes to the understanding of how fundamental analysis methods can be effectively applied in stock market strategies to influence stock prices. It aims to broaden investors' horizons by helping them identify the best strategies using fundamental analysis to generate profits from stock market investments and contribute to economic growth by strengthening economic conditions. This research is among the few studies examining the impact of stock investment decisions using a fundamental analysis approach on the stock prices of Shariah-compliant listed companies in Malaysia.

The Influence of Corporate Social Responsibility (CSR) and Environmental Social Governance (ESG) Disclosure on Profitability in Companies in the IDX ESG & IDX HIDIV20 Sector from 2020 to 2023

This research aims to analyze and evaluate the effect of Corporate Social Responsibility (CSR) and Environmental Social Governance (ESG) disclosures on corporate profitability. The focus of this study is to identify how CSR and ESG practices disclosed by companies affect key profitability indicators such as Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The object of research is companies listed on the Indonesia Stock Exchange, including IDX ESG Leaders Index (IDX ESG LID) and IDX High Dividend 20 (IDX HIDIV20) in 2020-2023; the sample is 25 companies. In this study, the analysis technique used was Structural Equation Modeling (SEM) PLS conducted using the WARP PLS (Weighted Autoregressive Distributed Lag PLS) method. The results showed that CSR disclosure has a positive and significant influence on corporate profitability, while ESG disclosure has a negative and significant influence. The study's implications suggest that CSR implementation can enhance financial performance, whereas ESG disclosure, despite offering long-term benefits, often requires significant initial investment, which can reduce short-term profitability.

Effects of Nursing Home Closures on Occupancy and Finances of Nearby Nursing Homes.

This study estimates the effect of nursing home closure on occupancy, net profit margin, and operating margin of nearby nursing homes. We use national nursing home data from 2009 to 2019 from Medicare cost reports, Medicare Provider of Services (POS), and LTCfocus.org data. Using the Callaway and Sant'Anna difference-in-differences model, we compare the changes in occupancy, net profit margin, and operating margin between incumbent nursing homes in markets with any closure and nursing homes in markets without a closure, overall, and across rurality. Our findings suggest that nursing home closure improves the occupancy rates of remaining nursing homes in the same market in rural areas but there is little evidence of effects in metropolitan and micropolitan areas. Nursing home regulators and local officials should consider the long-term care market heterogeneity when considering interventions targeted at nursing home closure.

ANALISIS RASIO KEUANGAN DALAM MEMPREDIKSI PERTUMBUHAN LABA PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

This research aims to test the hypothesis of Financial Ratio Analysis in Predicting Profit Growth in Banking Companies Listed on the Indonesia Stock Exchange (BEI). This research uses quantitative methods. The population in this study was 47 banking companies listed on the Indonesia Stock Exchange (BEI). The sample in this research consisted of 12 companies with data on 60 banking companies. The sampling technique uses purposive sampling with the criteria of all banking companies listed on the Indonesia Stock Exchange (BEI). The data analysis technique in the research uses the classic assumption test, which consists of the normality test, multicollinearity test, heteroscedasticity test, autocorrelation test, multiole linear analysis, hypothesis testing consisting of the t test (partial) and f test (simultaneous), and the coefficient test determination (R2). The results of the t test hypothesis test concluded that partially Return On Asset (ROA) had no effect on profit, Net Profit Margin (NPM) has no effect on profit growth, Return On Equity (ROE) has a positive effect on profit growth. Meanwhile, simultaneously. Return On Asset (ROA) had no effect on the profit growth, Net Profit Margin (NPM) had no effect on profit growth, and Return On Equity (ROE) has a positive effect on profit growth. It can be concluded that there is a significant influence of the variables Return On Asset (ROA), Net Profit Margin (NPM), and Return On Equity (ROE) together on the variable profit growth. Keywords : Return On Asset (ROA); Net Profit Margin (NPM); Return On Equity (ROE); Profit Growth

Analisis Rasio Profitabilitas Sebagai Alat untuk Mengukur Kinerja Keuangan pada PT Fast Food Indonesia Tbk yang Terdaftar di Bursa Efek Indonesia

This aims to determine the profitability ratio to measure financial performance at PT Fast Food Indonesia. This research uses quantitative methods and focuses on finding out how Profitability ratios measure financial performance at PT Fast Food Indonesia Tbk from 2019 to 2023. Based on the results of research that has been carried out using profitability ratio calculations, namely Net Profit Margin, Return On Assets, and Return On It is known that Equity at PT Fast Food Indonesia Tbk experiences fluctuations every year except 2023. So it is concluded that the company's financial performance after being calculated using these three indicators is still below the industry average standard except in 2023 capable of being above industry standards.

Financial Statement Analysis of BYD Company Limited

This paper takes BYD as an example to analyze its financial indicators and conduct a comprehensive DuPont analysis for the period from 2019 to 2023. The analysis reveals that the company achieved significant financial growth during this period. Both operating revenue and net profit showed an upward trend, with particularly strong growth momentum in 2022 and 2023, as net profit increased substantially. The gross profit margin and net profit margin also improved, indicating enhanced operational efficiency and effective cost control. At the same time, BYD's continuous increase in R&D investment has driven technological innovation and product upgrades. The total assets have continued to grow, reflecting the company's business expansion and strengthened capabilities. The cash flow position remains healthy, with net operating cash flow steadily increasing, providing stable financial support for the company. However, BYD faces challenges such as intensified market competition and fluctuations in raw material prices, which necessitate ongoing optimization of business strategies and operational models to maintain its leading position and competitiveness. Overall, BYD has performed outstandingly in the new energy vehicle sector, with promising prospects for future development.

Determinants of Net Profit Margins in Foreign Islamic Banks: Evidence from Malaysia

Determinants of Net Profit Margins in Foreign Islamic Banks: Evidence from Malaysia

The Impact of Cash Liquidity and Financial Leverage on The Performance of Iraqi Banks: A Comparative Study Between Islamic and Conventional Banks

Degree of financial leverage refers to the percentage of bank assets financed through debt, which banks must employ to achieve returns and cover costs, as well as the availability of cash at maturity. Therefore, the problem of the study arises in how the indicators of leverage and cash liquidity affect the indicators of financial performance in the Iraqi banking sector. That is why the study aims to use econometrics to demonstrate the impact of leverage and cash liquidity on the financial performance indicators represented by return on assets (ROA) and net profit margin (NPM) for a sample of 38 conventional and Islamic banks for the period 2010-2022. The Dynamic Panel Data methodology was used to determine the relationship between variables, which combines time series and cross-sectional, precisely the generalized moment method (GMM). Results show that financial leverage negatively and significantly impacts ROA and NPM indicators in the total sample and Islamic and conventional banks, except for the positive relationship with ROA in conventional banks. The results also showed the positive impact of cash liquidity on ROA and NPM indicators in the total sample and Islamic and conventional banks, except for its negative impact on ROA indicators in conventional banks. The results also showed the negative impact of the cash credit (cash credit to total assets ratio) on ROA and NPM indicators in the total sample and Islamic and conventional banks. Paper type: Research paper

PENGARUH RASIO PROFITABILITAS DAN RASIO AKTIVITAS TERHADAP PERTUMBUHAN LABA PADA PT GUDANG GARAM TBK PERIODE TAHUN 2013-2022

This research aims to determine the effect of the Profitability Ratio proxied by Net Profit Margin and the Activity Ratio proxied by Total Asset Turnover on PT Gudang Garam Tbk's Profit Growth, both partially and simultaneously. The population chosen was the financial report of PT Gudang Garam Tbk, with the sample used being the financial position report and profit and loss report for the 2013-2022 period. This research uses a quantitative approach and documentation data collection techniques. The analytical methods used are Multiple Linear Regression Analysis. Based on partial research results using the t test, it was concluded that Net Profit Margin had a significant effect on Profit Growth with a significance value of 0.001 < 0.05. Meanwhile, Total Asset Turnover has no significant effect on Profit Growth with a significance value of 0.413 > 0.05. Simultaneous test results (F test) show that Net Profit Margin and Total Asset Turnover together have a significant effect on Profit Growth with a significance value of 0.001 < 0.05 with an F_count value of 21.160 > F_table 4.74.

ASSERING THE IMPACT OF MACROECONOMIC INDICATORS ON CORPORATE FINANCIAL PERFORMANCE: AN EMPIRICAL ANALYSIS IN ASIA

This study investigates the impact of macroeconomic indicators, specifically GDP growth and inflation, on corporate financial performance in selected ASEAN countries (Indonesia, Malaysia, the Philippines, Singapore, and Vietnam) from 2010 to 2022. Using data sourced from the OSIRIS database and the World Bank's World Development Indicators, the analysis focuses on three key financial metrics: Return on Assets (ROA), Net Profit Margin (NPM), and Market Capitalization (MC). Employing the Generalized Least Squares (GLS) method, the study addresses heteroskedasticity and autocorrelation in panel data, incorporating control variables such as Total Assets, Current Ratio, and Interest Coverage. Results indicate that GDP growth positively correlates with ROA and NPM, underscoring the importance of economic expansion for corporate efficiency and profitability. However, GDP growth does not significantly impact Market Capitalization, highlighting potential differences in market valuation dynamics. Inflation positively affects ROA and NPM, suggesting firms effectively manage inflationary pressures but does not significantly affect Market Capitalization. The findings provide actionable insights for financial managers, investors, and policymakers. Companies should integrate macroeconomic forecasts into business planning and adopt strategies to mitigate inflationary impacts. Future research directions include sector-specific analyses, longitudinal studies, and the incorporation of additional macroeconomic variables to deepen the understanding of these relationships.

Long-Term Impact of Mergers and Acquisitions on Firm Performance: A Panel Data Study

Purpose - This study aims to examine the long-term impact of mergers and acquisitions (M&As) on firm performance, particularly within the pharmaceutical industry. Using a panel data regression model, the study assesses how key financial ratios such as Net Profit Margin, Return on Capital Employed (ROCE), Debt to Equity Ratio, and Enterprise Value influence postmerger firm performance over time. Design/methodology/approach - A panel data approach has been conducted using data from 10 pharmaceutical companies from their post-merger period, focusing on the effects of M&As on firm performance as measured by Net Profit Margin. Financial ratios related to profitability, liquidity, and valuation were used as independent variables. Findings - The study finds that M&As have a positive long-term impact on firm performance, particularly in companies with strong Earnings per Share (EPS), efficient capital management, and good liquidity. ROCE, Debt to Equity Ratio, and Current Ratio were significant predictors of improved Net Profit Margin, highlighting the importance of financial efficiency and debt management in the post-merger phase. Research limitations/implications - The focus on the pharmaceutical industry limits the generalizability of the findings to other sectors. Future studies should examine a broader range of industries to better understand the effects of M&As across different contexts