Decline In Profitability Research Articles

Analysis of Factors Affecting Food and Beverage Company Finances in the Period 2019-2023

Several food and beverage sub-sector companies experienced a decline in profits caused by factors such as the decline in the rupiah exchange rate, declining consumer purchasing power and increasing business spending that exceeded revenue growth. Laboratory analysis is an important indication used in the process of evaluating a company's financial performance. This study aims to analyze the financial performance of food and beverage manufacturing companies listed on the Indonesia Stock Exchange between 2019 and 2023. The research method uses quantitative research. The purposive sampling method was used to collect a total of eighty samples from a particular organization for the purpose of conducting a survey. A technique known as multiple linear regression was used in the data analysis process. Based on the results of the study, there was no significant relationship between corporate social capital and financial performance. However, leverage has an impact on the company's overall financial output. Management should consider the amount of leverage when trying to improve the financial performance of the organization. If manufacturing companies in the food and beverage sub-sector are having difficulty with the availability of laboratories, leverage can be used as a method to improve financial performance. Further research is needed to investigate other aspects that have a major impact on the company's financial performance.

A Financial Analysis and Valuation of Pfizer

Abstract: The rational valuation of the healthcare industry and the analysis and research of the financial risks faced by enterprises can not only provide a basis for rational investment and transaction pricing decisions, but also help enterprises to find out the shortcomings of the production and operation, so as to improve the management mode of the enterprise, and help enterprises to achieve the maximisation of management. Firstly, this paper analyse the risks faced by Pfizer from a financial point of view by quantitatively comparing the data of Pfizer and its two competitors, Amgen and Unitedhealth Group, and then qualitatively analysing their characteristics in terms of liquidity, solvency and profitability and the reasons for this. Next, Pfizer is valued by looking at its leverage, business risk, earnings per share, etc. to measure the financial risk of the business and the reasons for the capital structure. It then gives investors an objective investment recommendation by forecasting Pfizer's future share price. The study concludes that Pfizer Inc. is illiquid, has poor corporate solvency, is at risk of debt servicing, and has suffered a significant decline in profitability. Valuing Pfizer, the forecast suggests that Pfizer's stock is currently undervalued.

Impact of Economic Crises on Banking Sector Performance- A Comparative Analysis of Conventional and Islamic Banks Across OIC Countries

This study investigates the impact of three significant economic crises—the Eurozone Debt Crisis (2010-2012), the COVID-19 Pandemic (2020-2021), and the Post-Pandemic Economic Recovery (2021-2022)—on the performance of conventional and Islamic banks in Organization of Islamic Cooperation (OIC) countries. Using a dataset of 4,381 observations from 34 OIC countries, panel regression techniques are employed to evaluate the influence of these crises on key financial performance metrics: Return on Shareholders' Funds (ROSF), Profit Margin (PM), Return on Total Assets (ROA), Current Ratio (CR), and Solvency Ratio (SR). The analysis reveals that while the Eurozone Debt Crisis did not significantly affect bank performance, the COVID-19 pandemic led to a notable decline in profitability but an improvement in liquidity. The results highlight that during the COVID-19 pandemic, banks faced substantial challenges in maintaining profitability, as evidenced by the significant decrease in PM. However, the improvement in CR suggests that banks enhanced their liquidity management strategies to cope with the crisis. The Post-Pandemic Economic Recovery phase brought positive changes in both profitability and liquidity, demonstrating the ability of banks to adapt and thrive as economic conditions stabilized. Macroeconomic variables, such as GDP growth and inflation, played crucial roles, with GDP growth positively affecting ROSF and inflation negatively impacting PM. These findings underscore the importance of a diversified banking system, including both conventional and Islamic banks, to enhance financial stability. Policymakers and financial regulators should consider the unique strengths of Islamic banking principles in regulatory frameworks and prioritize sound macroeconomic policies to promote stability and resilience in the banking sector. Future research should further explore the long-term impacts of economic crises on bank performance across different regions and banking models, as well as the interaction between regulatory environments and bank resilience. Keywords: Economic crises, bank performance, conventional banks, Islamic banks, OIC countries, COVID-19 pandemic, Eurozone Debt Crisis, post-pandemic recovery, financial stability, macroeconomic factors.

Impact of Capital Structure on Profitability of Commercial Banks in Tanzania

This paper aims to examine the impact of capital structure on the profitability of commercial banks in Tanzania using panel data from 2017to 2021. Specifically, the study wants to investigate the impact debt and equity in capital structure on profitability of commercial banks in Tanzania. The study employed panel data research design and used secondary data which were extracted from audited financial statements of commercial banks. Return on assets was used as the dependent variables while independent variables were debt and equity capital as well as the debt-equity ratio. Result from the analysis indicates that initially the variables were not normally distributed which necessitate normalization of variables. Correlation analysis was performed and there was no multicollinearity problem between the variables. Based on Hausman test fixed effect model was selected as the appropriate model. The results from the analysis showed that 1% increase in debt capital increases profitability of commercial bank by 16.79%. The positive debt-profitability coefficient implies opportunities for enhancing profitability of commercial bank through debt financing. Result further revealed that 1 % increase in debt-equity ratio is associated with 18.07% decline in profitability. Which implies negative relationship between debt-equity ratio and profitability. On the other hand, increase in equity finance is associated with decline in profitability holding other factors constant. However, the study recommends a comprehensive assessment and consideration of situational factors while carrying out capital structure decision inverse relationship between debt-equity ratio also implies that excessive debt may pose financial risk and make the company less attractive to potential investors.

Peran Corporate Social Responsibility Memediasi Pengaruh Penerapan Green Accounting dan Kinerja Lingkungan Terhadap Profitabilitas Perusahaan yang Terdaftar di Bei

The profitability of a company, as reflected by ratios such as Return on Assets (ROA), measures its ability to generate profit from operational activities. In the consumer non-cyclical sector, while some companies have experienced a decline in profits, financial performance tends to remain stable. This study employs purposive sampling to obtain 106 observations and panel data regression analysis to explore the impact of green accounting, environmental performance, and CSR on profitability, given the varying results from previous studies. The research findings indicate that: 1) Green accounting has a positive effect on corporate social responsibility. 2) Environmental performance does not affect corporate social responsibility. 3) Green accounting does not impact company profitability. 4) Environmental performance does not impact company profitability. 5) Corporate social responsibility affects company profitability. 6) Corporate social responsibility mediates the relationship between green accounting and company profitability. 7) Corporate social responsibility does not mediate the relationship between environmental performance and company profitability.

Trilateral game and vertical collaboration models in a two-stage green supply chain with substitutable green products

This paper explores the trilateral game and vertical collaboration model based on Stackelberg’s (manufacturer-leadership game) and Bertrand’s game-theoretical methodology for a two-stage green supply chain where the duopolistic manufacturers and the retailer are ecologically conscious. Both manufacturers produce and sell two substitutable green products through a common retailer. The selling prices and green levels (GLs) determine the demand for both green products. A game theoretical approach is implemented in the trilateral game model, and the result shows that the manufacturer with a bigger sales volume achieves superior performance in terms of earnings. In the vertical collaboration model, a manufacturer and retailer collaborate to optimize pricing issues, GLs, and profits. Two-player games among three participants are performed for this collaboration. The results of the vertical collaboration model show that the overall profit in vertical collaboration is greater than the sum of the individual profits corresponding to two participants in the trilateral game model. Whereas, the manufacturer outside the collaboration experiences a decline in profits. Further, a selection criterion of manufacturers is also developed to maximize the overall profit of the retailer. Finally, a numerical example and a sensitivity analysis are performed to demonstrate the model’s implementation and stability.

The Effect of Working Capital, Sales, and Operating Expenses on Net Profit on Bengkel Sejahtera Motor Source Cirebon

. This study was driven by a decline in net profit at Bengkel Sejahtera Motor Sumber Cirebon during the 2019-2023 period. The reduction in net profit suggests that working capital has not been utilized optimally, and operational expenses have risen each year. Therefore, this research seeks to explore how workshop owners can maximize the use of their working capital and minimize operational costs effectively to boost net profit at Bengkel Sejahtera Motor Sumber Cirebon. The aim of this research is to analyze the influence of working capital, sales, and operational expenses on the net profit of the workshop. This study employs a quantitative approach, with a population of 144 financial data entries, and uses random sampling as the sampling method. The data analysis techniques applied include descriptive statistics, multiple linear regression analysis, and a series of data quality tests, such as validity tests, reliability tests, and classical assumption tests (normality, multicollinearity, and heteroscedasticity tests). Hypothesis testing is conducted using the t-test (partial) and F-test (simultaneous). The findings of this research reveal that working capital has a significant negative impact on net profit, sales have a significant positive effect, and operational costs exert a significant negative influence on net profit. Furthermore, working capital, sales, and operational costs together significantly affect the net profit.

Financial Viability of Thermal Power Generation Plants in the Transition to Renewable Energy

The energy transition will occur due to the natural decline in profitability of thermal power generation assets, and their place in the energy matrix will be taken over by renewable energies. Ensuring electric supply security, a cornerstone of the energy trilemma, is a priority for both developed and developing countries. Nations heavily reliant on hydrological resources employ thermal energy as a backup, making the exploration of financial feasibility for such projects pertinent. This study introduces an economic valuation model for a dispatchable thermal power generation plant in the Colombian market. Associated uncertainty is assessed based on revenue from market sales, bilateral contracts, and firm power remuneration – elements constituting the cash flow and converging into profitability and risk analysis. These are calculated through the Monte Carlo simulation methodology. Additionally, a sensitivity analysis is conducted, accounting for variables such as the "Reliability Payment" settlement price, capacity factor, and costs linked to coal supply. The results emphasize the need for firm power remuneration as a crucial incentive for the success of such projects. Furthermore, the criticality of dispatch level in relation to profitability is verified. Finally, the impact of coal taxes and supply negotiations on financial feasibility is assessed.

Pricing and green quality decisions in two-stage green supply chain for substitutable green products: A game-theoretic approach

Growing businesses are concerned with doing well both environmentally and economically. Pointing out this view, this paper explores the game theoretical approach (Stackelberg and Bertrand) for a two-echelon green supply chain where the duopolistic manufacturers produce two substitutable green products and sell their products through a common retailer. The demands for both green products are functions of the selling prices and green levels (GLs). The effects of power structures on optimal price and green level decisions and associated equilibrium decisions are examined in three scenarios. Firstly, trilateral competition manufacturer-led Stackelberg (MS); secondly, retailer-led Stackelberg (RS); and thirdly, vertical collaboration, and compares the optimal decisions analytically. Our investigations show that, in addition to increasing the product’s greening level, vertical collaboration creates a win–win situation for collaboration members, whereas the manufacturer outside the collaboration experiences a decline in profits. Additionally, we find that the overall profit from vertical collaboration is greater than the sum of the individual profits corresponding to two participants in the trilateral competition models (MS and RS). Further, a selection criterion is developed for retailer to select the most suitable manufacturer for vertical collaboration. Finally, a numerical example and a sensitivity analysis are performed to determine the impact of parameters.

Effects of Swiss Needle Cast on the Profitability and Optimal Management of Douglas-fir Plantations in Western Oregon

Abstract This study conducts an economic analysis to evaluate the impact of Swiss needle cast (SNC) caused by Nothophaeocryptopus gaeumannii on Douglas-fir (Pseudotsuga menziesii) plantations at the stand level in western Oregon. We examine timber and nontimber benefits across varying degrees of SNC severity considering timber benefits and carbon sequestration benefits. By comparing these values with unaffected Douglas-fir stands, our aim is to quantify the economic losses associated with SNC in terms of the land expectation values. The total land expectation value for a stand affected by SNC ranges from $556 to $2,179/ac, representing an average decrease of 50% ($1,066/ac) in economic revenues compared with a Douglas-fir stand without SNC infestation. Engaging in cost-effective annual management activities, with maximum costs of $43–$56/ac, could offset the profitability decline. On average, the total losses in profits for the current plantations affected by SNC are estimated to be around $206.5–430 million. Study Implications: In this study, we examine the economic impacts of Swiss needle cast (SNC) on the profitability of western Douglas-fir in Oregon. Our results reveal that profits for landowners can be, on average, reduced by $1,066/ac when their stand is infested by SNC, representing a 50% loss in profitability. Landowners could potentially mitigate these losses by engaging in annual management activities aimed at preventing Douglas-fir infestation, incurring a cost ranging between $43–56/ac, which could offset the reduction in profitability.

Facing the Unprecedented: Event Centers' Challenges and Interventions Amid COVID-19

The research investigates the complex issues and strategic interventions an event center has to deal with during the COVID-19 pandemic. Accordingly, the study identified significant challenges, such as a vast decline in profitability, transport-related problems, the loss of clientele, and acute liquidity problems. Safety and security concerns and the inability to maintain the operation cost contributed to and complicated the center's struggles. Challenges were met at the center by cutting utility and operating costs, revising marketing strategies, giving incentives to customers, and embracing technology. The lesson learned is that adaptability, innovation, and strategic planning are critical ingredients in managing crises. The management deftly rode out the unprecedented disruptions by keeping the business plan updated, carrying out market research, and creating a sense of commitment. The recommendations at the end of the study were focused on cost efficiency, marketing, the infusion of technology, and building resilient organizations for long-term growth.

Quantitative and qualitative management of water resources with the use of treated wastewater in agriculture.

The principled utilization of treated wastewater can reduce the pollution load on the environment. Because on the one hand, treated wastewater can be a suitable fertilizer substitute, and on the other hand, using treated wastewater in irrigation prevents the discharge of polluted surface water into water sources. In the south of Tehran province, polluted surface water is used for irrigation in the agricultural sector, and this has led to environmental problems. To solve this problem, it has been decided to implement a plan to build surface water treatment plants and an irrigation and drainage network to transfer treated wastewater to farms. Therefore, the present study aimed to investigate the economic and environmental effects of this project in the region. A hydro-economic model has been used to achieve this goal. According to the results, in the case of the application of environmental constraints in the optimization model, the cultivation area and the farmers' profit will be reduced by about 5% and 36%, respectively, compared with the noncompliance of environmental constraints. However, this decline in profit can be compensated by adopting solutions such as improving the irrigation system, the application of treated wastewater, or using the fertilizer potential of water sources in the agricultural sector. PRACTITIONER POINTS: In the optimal economic-environmental situation, farmers' profit is reduced compared with the optimal economic situation. In the case of implementing the treated wastewater application, the farmers' profit will increase despite environmental constraints. In the optimal economic-environmental situation, fewer lands are cultivated with diverse crops than in optimal economic conditions.

Trends in Input-Output Relation and Structural Changes in Input Cost of Major Crops in West Bengal

"The structural change of input cost refers to the change in the intensity of labour and capital (seed, fertilizers, pesticides, machineries etc.) used in agriculture. An attempt has been made to analyse the structural changes of input cost along with the trends in input-output relation of the three major crops (paddy, jute and potato) in West Bengal during 1999-00 to 2019-20 by using data of the Cost of Cultivation of Principal crops in India, Directorate of Economics & Statistics (DES), Ministry of Agriculture and Farmers Welfare, Government of India. It is found that the structural intensity of input cost shifts towards a more capital-intensive direction during 1999-00 to 2009-10, but then the situation is reversed to more labourintensive in terms of input cost during 2009-10 to 2019-20. To investigate the reasons, the study found that the higher labour cost is the main reason for this. Though the physical unit of labour per hectare decreased during the second phase (2009-10 to 2019-20), the high wage rate increased the share of labour cost and the total cost of cultivation. In the trend of the input-output relation of the state’s agricultural production, the study observed a decline in the input-output ratio (profitability from cultivation) for the crop paddy and jute, but it increased for the potato. The higher growth of input cost over output price during reference periods is the main reason for the decline in profitability of the crops in West Bengal."

Perbedaan Manajemen Laba Untuk Menghindari Penurunan Laba Berdasarkan Tipe Direktur Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia

Profit is one of the indicators used to assess company management performance. Management tends to carry out earnings management when there is a decline in profits compared to the previous period. This study analyzes earnings management to avoid decreasing profits based on director type (professional-director and owner-director) in companies listed on the Indonesia Stock Exchange in 2017 - 2022. This research uses secondary data, namely financial statements and annual reports of companies listed on the Indonesian Stock Exchange. The sample in this study was 541 companies. The samples were analyzed using two earnings management measurements, namely accrual management (discretionary accruals adjusted for performance) and real activities management (abnormal operating cash flow). The sample was divided into two groups based on director type to analyze earnings management to avoid decreasing profits for each group. The results show that all directors types carry out earnings management. Companies managed by owner-directors tend to manage discretionary accruals to avoid profits decline. Meanwhile, companies led by professional-directors tend to manage earnings by performing real activities management.

Revitalizing Customer Satisfaction in Indonesia's Rice Industry

CV. Central Karya Jaya, a rice distribution company, faced a 40% profit decline. This study aims to enhance company performance and customer satisfaction using the Balanced Scorecard and Importance Performance Analysis (IPA). Data from 70 respondents showed a financial ROE above 12%, but customer satisfaction had a 72.25% conformity, revealing unmet needs. Key improvements are needed in managerial friendliness, employee responsiveness, and personalized service. Recommendations include fostering better employee relations and understanding customer needs, with future research suggesting the use of Quality Function Deployment (QFD) for further service enhancement. Highlights: Financial Performance: ROE above 12% indicates solid financial health. Customer Satisfaction: 72.25% conformity shows areas needing improvement. Key Improvements: Enhance managerial friendliness and employee responsiveness Keywords: Performance Measurement, Balanced Scorecard, Customer Satisfaction, Rice Distribution, Importance Performance Analysis

Pengaruh Risiko terhadap Profitabilitas Bank yang Terdaftar di Bursa Efek Indonesia

Abstract - This study aimed to evaluate the influence of market risk, credit risk, liquidity risk, and operational risk on the profitability of banks listed on the Indonesia Stock Exchange during the period from 2020 to 2022. The chosen timeframe coincided with the emergence of the Covid-19 pandemic, which naturally resulted in a decline in banking profitability and an increase in the risks faced by these banks. The research adopts a quantitative approach, and sample selection employed the purposive sampling method. Secondary data from the Indonesia Stock Exchange were utilized for analysis. Data processing was conducted using EViews 12, involving various tests such as descriptive statistical analysis, classical assumption testing, panel data regression analysis, model testing, and hypothesis testing. The findings of the study reveal that market risk positively affects profitability, while credit risk and operational risk has a negative impact on profitability. Conversely, liquidity risk does not demonstrate a significant effect on profitability. The outcomes of this study hold significance for academic researchers exploring the relationship between risk management practices and bank profitability.Keywords: Bank, Profitability, Risk

Strategi Perusahaan Maskapai Penerbangan dalam Menghadapi Pandemi Covid-19: Pendekatan Akuntansi Manajemen

The Covid-19 pandemic has caused many companies to experience a decline in revenue and profits, including airline companies. PT Garuda Indonesia is one of the companies included in the tourism industry ecosystem which has also been affected by the Covid-19 pandemic. This research aims to investigate the strategies companies choose to face the Covid-19 pandemic. This research uses a qualitative method with a case study approach. The research results show that cost efficiency and product differentiation strategies are able to increase company revenues.

Application of Dynamic Structural Model to Identify Factors That Influence Capital Adjustments in The National Manufacturing Industry

This research aims to determine the costs of capital adjustments and company dynamics. Company panels comprise the database. The main advantage of analyzing the nature of adjustment costs at the plant level is that the data contain information for purchases and sales of capital goods. Panel data, including information from many plants and long periods, allows for a more comprehensive analysis of firms' investment behavior in the face of capital adjustment costs. The estimation results allow for the recovery of companies' frictions in adjusting their capital stock. The estimation results for capital adjustment costs are consistent with other studies using similar methodologies. Estimates show that there are significant, unchangeable fixed costs, as well as moderate quadratic costs. Researchers then use the estimated parameters in a counterfactual simulation to analyze the impact of a decline in average firm profitability on the labor market. The results show a significant labor market response to the shock, with the transition to the new stable state being slow and taking several years to complete the adjustment. The simulations highlight the importance of not only modeling capital mobility but also considering and estimating its frictions to evaluate the impact of policies or shocks on the economy. The mobility and capital adjustment costs influence the speed of the economy's adjustment to shocks and their effects on factor allocation and remuneration in the short and long term.

Transformation scenarios towards multifunctional landscapes: A multi-criteria land-use allocation model applied to Jambi Province, Indonesia

In tropical regions, shifting from forests and traditional agroforestry to intensive plantations generates conflicts between human welfare (farmers’ demands and societal needs) and environmental protection. Achieving sustainability in this transformation will inevitably involve trade-offs between multiple ecological and socioeconomic functions. To address these trade-offs, our study used a new methodological approach allowing the identification of transformation scenarios, including theoretical landscape compositions that satisfy multiple ecological functions (i.e., structural complexity, microclimatic conditions, organic carbon in plant biomass, soil organic carbon and nutrient leaching losses), and farmers needs (i.e., labor and input requirements, total income to land, and return to land and labor) while accounting for the uncertain provision of these functions and having an actual potential for adoption by farmers. We combined a robust, multi-objective optimization approach with an iterative search algorithm allowing the identification of ecological and socioeconomic functions that best explain current land-use decisions. The model then optimized the theoretical land-use composition that satisfied multiple ecological and socioeconomic functions. Between these ends, we simulated transformation scenarios reflecting the transition from current land-use composition towards a normative multifunctional optimum. These transformation scenarios involve increasing the number of optimized socioeconomic or ecological functions, leading to higher functional richness (i.e., number of functions). We applied this method to smallholder farms in the Jambi Province, Indonesia, where traditional rubber agroforestry, rubber plantations, and oil palm plantations are the main land-use systems. Given the currently practiced land-use systems, our study revealed short-term returns to land as the principal factor in explaining current land-use decisions. Fostering an alternative composition that satisfies additional socioeconomic functions would require minor changes (“low-hanging fruits”). However, satisfying even a single ecological indicator (e.g., reduction of nutrient leaching losses) would demand substantial changes in the current land-use composition (“moonshot”). This would inevitably lead to a profit decline, underscoring the need for incentives if the societal goal is to establish multifunctional agricultural landscapes. With many oil palm plantations nearing the end of their production cycles in the Jambi province, there is a unique window of opportunity to transform agricultural landscapes.

The Impact of QRIS Policy on the Development of Micro Businesses in Medan City, Indonesia

This study analyzes the impact of the QRIS policy in the early stages of implementation on financial performance and expansion of the market share of micro-businesses in Medan City. Financial performance is observed through changes in turnover and net profit; meanwhile, market share is determined based on changes in the number of new customers before and after the implementation of the QRIS policy. This study employs the Difference in Differences (DiD) method. The type of data used is primary data. Purposive and random sampling was utilized with 50 samples of micro businesses for the treatment group and 50 for the control group. The time difference was found between before and after the implementation of the QRIS policy. The results of this study show that the QRIS policy has a positive and significant effect on the increase in new consumers. On the other hand, the QRIS policy has no significant impact on the net profit and turnover of micro businesses. The COVID-19 pandemic has significantly and negatively impacted micro-enterprises, sharply declining revenue and net profit. However, based on the magnitude of the decline, the control group experienced a relatively greater turnover and net profit decline than the treatment group. The implication of this study is the need for efforts to increase micro-entrepreneurs understanding of the importance of faster adaptation to advances in digital technology, one of which is adjustments to a more flexible payment system so that consumers can get a wider choice of payment schemes. In addition, payment system authorities should address various obstacles in using the system and provide more massive socialization of the products offered.