Total Asset Turnover Ratio Research Articles

PROFITABILITY ANALYSIS OF PUBLIC SECTOR BANKS IN INDIA

Economic development of any nation depends on its efficient financial operations of the banking networks. Indian banking sector facing severe NPA issues. In order to overcome this problem, Government of India started merging activities. Some major mergers took place in recent years which made the Indian Banking Sector effective, innovative and competitive in the global level. Public sector banks which left as an independent public sector bank after merging process conducted by government of India in the last few years are taken as a sample for the study. The purpose of this article is to determine the financial factors affecting the performance of public sector banks in India. This article analyzed the financial data of six independent public sector banks for the period of four years from 2017-18 to 2020-21. For analysis purpose, used secondary data from various financial websites and only quantitative data is considered and ratio analysis and descriptive statistics are used for analysis purpose. The present study has examined the financial performance in the public sector banks which has a significant result in terms of Net Profit Margin, Return on Net Worth, Operating Expense / Total Income and Capital Adequacy Ratios Bank of India performed better. Central Bank of India functioned well in getting significant long term returns and all selected sample banks shown negative outcome in the relation of Net Profit / Total Funds. Bank of Maharashtra revealed its inefficiency in maintaining negative loan turnover ratio, while Central Bank of India more efficient bank which has Positive Loan turnover ratio. Outperformed Punjab and Sind Bank in terms of Total Assets Turnover Ratio, Advances / Loans Funds and Earnings Per Share. All selected six sample Banks has less than one (<1) Current ratio in shown inefficient in making its dues in a time. Punjab and Sind bank and UCO Bank used its huge amount of interest earned income for making payment of Interest expenses. From the study it is clear that there is a need to improve the overall profitable performance of selected sample of public sector banks by the government which is in need for its survival. KEYWORDS: Profitable Performance, Public sector banks, ratio analysis.

Effect of Current Ratio, Debt to Equity Ratio, Total Assets Turnover Ratio, Return on Assets and Institutional Ownership of Financial Distress in the Property & Real Estate Sector Listed on the Indonesia Stock Exchange

The objective of the research is to analyze and find out, partially and simultaneously, the influence of Current Ratio, Debt Equity Ratio, Total Asset Turnover Ratio, Return on Asset, and Institutional Ownership on Financial Distress in the Manufacturing companies of Property & Real Estate Sector listed BEI (Indonesia Stock Exchange) from 2010 to 2019. The population is 64 companies and ten of them are used as the samples. The data are gathered by conducting a documentary study and analyzed by using E-views software program with chow test (common vs fixed effect, Hausman test, multiple regression analysis of panel data model, classic assumption test, T-test, F-test and determinant (R2) test. The result of the research shows that part, the Current Ratio does not affect Financial Distress, Debt Equity Ratio has some effect on Financial Distress, the Total Asset Turnover Ratio has some effect on Financial Distress, Return on Assets has the same effect on financial distress, and Institutional Ownership does not affect Financial Distress. Simultaneously, Current Ratio, Debt to Equity Ratio, Total Assets Turnover, Return on Asset dan Institutional Ownership have the same effect on financial distress in manufacturing companies’ property & Real Estate sector listed on the Indonesia Stock Exchange from 2010 to 2019 Keywords: Current Ratio. Debt To Equity Ratio. Total Assets Turnover Ratio. Return On Assets, Institutional Ownership and Financial Distress.

INFLUENCE OF FINANCIAL RATIOS TOWARD STOCK PRICE OF PHARMACEUTICAL COMPANIES IN INDONESIA

The research objectives to examine the influence of current ratio, debt to equity ratio, return on equity, total asset turnover ratio, and earnings per share on stock price with an additional price-earnings ratio as moderating variable of current ratio, debt to equity, and earning per share of pharmaceutical companies listed in Indonesia Stock Exchange. The quantitative research is applied through data from the financial reports among six samples of pharmaceutical companies from 2009-2020 with the analytical tool EViews 10, with other supporting tests such as descriptive statistical analysis, classical assumption, multiple linear regression, and hypothesis testing. The use of multiple linear regression on panel data bolsters to choice of the Fixed Effect Model technique. The results depict a value of adjusted R-square of dependent variables by 64.38%, which CR, DER, TATO, and EPS significantly influence the stock price. Meanwhile, PER does not moderate EPS impact on stock price, yet, moderates CR and DER effect on the stock price.

Modelling framework of the Tandem Supply Chain Efficiency and Sustainable Financial Performance in the Automotive Industry

The research examines the causal relationship between supply chain efficiency and sustainable financial performance based on the evidence from the literature dealing with a transition from financial decision-making based on the financial outcome, including financial rationale in supply chain design, operations, and management. The case study has included 100 companies selected from the automotive production sector over ten years, from 2010 to 2019. Methodologically, the study includes statistically fixed and random effects models, considering within the model parameters as dependent variables asset and efficiency-based ratios and as independent variables financial performance ratios related to returns on assets, equity, capital expenses, and sales. The selection of the fixed or random- effects model is accomplished by performing the Hausman test. The results of panel analysis indicate a causal relationship for the proposed models, highlighting the importance of efficiency ratios such as Fixed Assets Turnover Ratio, Total Assets Turnover Ratio, and Fixed Assets Turnover. From practitioners` perspective, the models` construction and the paper’s results gain insight into strategic supply chain areas that can be prioritised for increased efficiency and corporate competitiveness, promoting sustainable financial performance through asset structure, asset efficiency, and inventory management.

Analisis Kinerja Keuangan Perusahaan BUMN Sebelum dan Sesudah Privatisasi

Privatization is one of the steps taken by State-Owned Enterprises (BUMN) in an effort to be able to compete and participate in capital market competition. The purpose of this study is to test whether there are differences in the financial performance of state-owned companies before and after privatization. The purposive sampling method was used in taking samples from BUMN that did privatization and had complete annual financial reports for a period of 3 years before and 3 years after privatization. Data analysis was carried out by analyzing descriptive statistics and inferential analysis which were tested by normality test and then hypothesis testing using STATAMP.15. The test results found that the Current Ratio (CR), Debt to Asset Ratio (DAR), Total Asset Turnover Ratio (TATO), Return on Equity (ROE) and Earning Per Share (EPS) had significant differences before and after privatization. Meanwhile Sales Growth (SG) did not find any difference before and after privatization.
 Keywords: BUMN; Privatization; Financial Performance; IPO.

Islamic Financial Bank Performance in Indonesia and Malaysia

The increasing popularity of Islamic banks with the opening of various Islamic banks, both independent and as one of the long-established subsidiaries of conventional banks, seems to show that the banking industry, which applies Sharia principles in every business step, promises profitable business expansion opportunities. The purpose of this study is to compare the financial performance of Islamic commercial banks that were established in Indonesia and Malaysia in the 2016 – 2018 period using general financial ratios, namely the ratio of CAR, ROA, FDR and Total Asset Turnover. The research sample was taken by purposive sampling. The data obtained were analyzed by descriptive statistical methods to see the overall performance of banks both within and between countries, then the independent sample t test was used to see the significance of the differences in the performance of each type of banking industry in each country, both in Indonesia and Malaysia. This study shows that the financial performance of Islamic commercial banks in Indonesia and Malaysia has significant differences.

Analisis Manajemen Modal Kerja PT. Sri Rejeki Isman Tbk Periode Tahun 2016-2018

As a company that produces textiles, PT. Sri Rejeki Isman, Tbk, has working capital that must be managed efficiently. To find out how to manage working capital, this study uses activity ratio as an indication that working capital has been managed properly or not. Based on the calculation of several types of activity ratio, the management of working capital management of PT Sri Rejeki Isman Tbk is still quite efficient. In the measurement of working capital turnover, the company’s average working capital turnover is greater than the industry standard average. For the total asset turnover ratio, the company experiences a low rating compared to the average textile industry standard in Indonesia. As for the assessment of the ratio of inventory turnover and account receivable turnover, the company is able to manage its inventory and receivables quite well.

서울신용보증재단 지원 소상공인 예비창업자의 특성별 성과

In recent years, as the pandemic caused by the coronavirus infection-19(COVID-19) continues, the financial status of small business owners has drastically deteriorated. The government supports small business owners facing market failure in accordance with the policy goals in lowering financial risks and promoting management activities in order to improve profitability. Small business policy funds support new business formation and recovery to help small business owners grow and contribute to the development of the national economy by creating employment opportunities. Strategic allocation of policy funds is the key to the success of small business owners. The purpose of this study is to analyze the performance of consulting and funding support by characteristics of small business owner prospective entrepreneurs supported by the Seoul Credit Guarantee Foundation. The Seoul Credit Guarantee Foundation will disclose the results of total asset turnover ratio, sales amount, and number of employee depending on the characteristics of small business owner prospective entrepreneurs who provided start-up consulting and policy funds to small business owner prospective entrepreneurs. The Seoul Credit Guarantee Foundation supports small business owner prospective entrepreneurs with first- phase consulting, such as writing a business plan before starting a business, and supports second-phase consulting with start-up funds after starting a business. The goal of the Seoul Credit Guarantee Foundation is to reduce the number of failed start-ups through consulting and policy funds support from preliminary start-up stage to within three years after start-up. This study analyzed the first-stage consulting data including the preparation of business plans and the second-stage consulting data of 500 small business owner prospective entrepreneurs helped by the Seoul Credit Guarantee Foundation for three years from 2016 to 2018, before COVID-19. By analyzing the data before COVID-19, the government's policy objectives and their justifications for those objectives are examined for small business owners who have recently faced market failure due to COVID-19. The characteristic factors of small business owner prospective entrepreneurs such as: gender, age, start-up preparation period, industry experience, credit management capability, non-bank loan, total asset, equity capital ratio, debt ratio and target net income were used as independent variables. Also, total asset turnover ratio, sales amount and number of employee were used as dependent variables. The results of the regression analysis on the performance of each characteristic of small business owner prospective entrepreneurs are as follows. First, the variables in which support- ing policy fund through start-up consulting for small business owner prospective entrepreneurs has a significant positive(+) effect on total asset turnover ratio are gender, equity capital ratio, and target net income. And a variable that has a significant negative(-) effect on total asset turnover ratio is total assets(start-up expenses). This can be judged that the male entrepreneurs, the higher the target net income, the higher the equity capital ratio, and the smaller the start-up expenses, the higher the total asset turnover ratio, thereby effectively using the assets owned. Second, the variables in which supporting policy fund through start-up consulting for small business owner prospective entrepreneurs has a significant positive(+) effect on sales amount are gender, total assets(start-up expenses), equity capital ratio, target net income, and industry experience. This suggests that if male entrepreneurs with a lot of experience in the same industry have a high total assets, a high equity capital ratio, and a high target net income, sales amount increase when starting and operating a business.

An Analytical Study of Liquidity and Assets Management Ratio of Selected Automobile Company in India

The primary objective of this research is to assess the liquidity and asset management positions of selected vehicle manufacturers and to give recommendations for improving their liquidity and asset management positions. The current research spans five years, from 2015-2016 to 2019-2020. Three organizations were chosen for this research, and five ratios were calculated: the current ratio, the liquidity ratio, the working capital turnover ratio, the total asset turnover ratio, and the fixed asset turnover ratio. ANOVA was employed to test the hypothesis. The research's principal results reveal that there is no statistically significant variation in the different asset management and liquidity ratios of chosen vehicle businesses during the study period. According to data interpretation, the comparison of all the selected three automobile industry's ratios indicates that Maruti Suzuki Ltd. is in a better position than the other selected automobile companies, as its average of the selected ratios is 12.85, which is higher than the other selected automobile companies. Thus, Maruti Suzuki Ltd. outperforms the other automotive manufacturers.

An Analytical Study of Liquidity and Assets Management Ratio of Selected Automobile Company in India

The primary objective of this research is to assess the liquidity and asset management positions of selected vehicle manufacturers and to give recommendations for improving their liquidity and asset management positions. The current research spans five years, from 2015-2016 to 2019-2020. Three organizations were chosen for this research, and five ratios were calculated: the current ratio, the liquidity ratio, the working capital turnover ratio, the total asset turnover ratio, and the fixed asset turnover ratio. ANOVA was employed to test the hypothesis. The research's principal results reveal that there is no statistically significant variation in the different asset management and liquidity ratios of chosen vehicle businesses during the study period. According to data interpretation, the comparison of all the selected three automobile industry's ratios indicates that Maruti Suzuki Ltd. is in a better position than the other selected automobile companies, as its average of the selected ratios is 12.85, which is higher than the other selected automobile companies. Thus, Maruti Suzuki Ltd. outperforms the other automotive manufacturers.

The Role of Cost Structure in Working Capital Management in theIndian Sugar Industry

This study examines the role of cost structure in working capital management for sugar manufacturing companies in India. The study uses fixed-effects panel regression models and the sample for the study included fifteen listed sugar manufacturing companies for the period 2008-18. The key results of the study were that employee expenditure has significant positive impact on the current ratio, the payables cycle, and the cash conversion cycle, and significant negative impact on the total assets turnover ratio and the fixed assets turnover ratio and that sales/administrative expenditure has significant positive impact on the total assets turnover ratio, the fixed assets turnover ratio, and the inventory turnover ratio, and significant negative impact on the inventory cycle and the cash conversion cycle. The results suggest that the cost structure variables of employee expenditure and selling/administrative expenditure may play a mediating role between firm-level variables and working capital variables, with direct and indirect effects; whereas the cost structure variables of raw materials expenditure and power/fuel expenditure may not play such a mediating role. These direct and indirect effects may be tested using structural equation methods in subsequent studies.

The Impact of Capital Structure on the Performance of Chinese E‐Commerce Industry Companies (2013–2019 Panel Data)

This research examined how to estimate performance in China’s e‐commerce industry, by taking 2013–2019 e‐commerce listed companies as the research samples and using an empirical research method to study the relationship between capital structure and firm performance. The empirical results show that the debt‐to‐asset ratio and the long‐term interest‐bearing debt ratio have a negative impact on firm performance, but the impact of the long‐term interest‐bearing debt ratio is not significant. Moreover, the short‐term interest‐bearing debt ratio and the total asset turnover ratio have a positive impact on firm performance, while the impacts of the current assets ratio and intangible assets ratio on firm performance are not significant. The following suggestions are drawn from the results in order of importance. (1) Enterprises should maintain a reasonable debt‐to‐assets ratio and a stable capital structure and appropriately increase the proportion of short‐term liabilities. (2) Firms should moderately invest to expand their scale and improve their profitability, so as to increase retained earnings and develop internal financing channels.

Corporate Financial Performance in the COVID-19 Pandemic

The purpose of this study was to determine the condition of the company’s financial performance during the COVID-19 pandemic measured by the ratio of liquidity, solvency, profitability, and activity. The type of data used in this research is secondary data including financial reports in consumer goods companies in the food & beverage sub-sector, pharmaceutical companies, and telecommunications companies listed on the Indonesia Stock Exchange (IDX) in 2020. The financial report data is processed using the finance ratios including liquidity ratios (current ratio, quick ratio), solvency ratio (Debt to Assets Ratio, Debt to Equity Ratio), activity ratios (Fixed Assets Turnover, Total Assets Turnover Ratio), and profitability ratios (Gross Profit Margin, Return on Equity), Return on Investment). Then draw conclusions from that ratio analysis, and make further analyses. From the research results obtained by PT. Indofood CBP Sukses Makmur based on the liquidity ratio, the solvency ratio is declared good, the activity ratio and the profitability are declared less efficient and optimal, but the GPM is declared good. Then the financial performance of PT. Telekomunikasi Indonesia based on the liquidity ratio is stated to be not good, the solvency ratio is stated to be quite good, the activity ratio seen from the FATO and TATO analysis is stated to be not good enough and less efficient, based on the profitability ratio GPM is declared good, while the ROE and ROI are stated to be less efficient and not optimal. Furthermore, the financial performance of PT. Kalbe Farma Tbk based on the liquidity ratio is declared good, solvency is declared good enough, activity is declared not good or efficient, profitability as seen from the GPM analysis is declared good but ROE and ROI are declared less efficient.

Effect of Financial Leverage on Firm Performance: Reference to Investment Trust Companies Listed in Sri Lanka

The research investigates the effect of financial leverage on firm performance: reference to investment trust companies listed in the All Share Price Index (ASPI) on the Colombo Stock Exchange (CSE). Data for the study were collected for the period through annual reports and analyzed data using multiple linear regressions. The Profitability, Liquidity, and Asset Management efficiency performance of firms are measured respectively by Return on Asset, Current Ratio, and Total Asset Turnover Ratio. Financial Leverage is measured by Debt Ratio, Debt Equity Ratio, and Interest Coverage Ratio. Based on the analysis performed, it is noted that there’s no significant relationship between financial leverage and profitability, liquidity, and asset management while having a positive significant relationship with debt ratio and asset management performance of investment trusts listed in the All Share Price Index.

Relationship between the quality of information from ERP systems and business performance: Controlling analysis using DuPont system

The aim of this paper is to determine the relationship between the quality of information from the Enterprise Resource Planning system (ERP system) and business performance. The quality of information from the ERP system is assessed using a survey questionnaire examining the end users of the ERP system, namely middle and top management because they use information from the ERP system to make business decisions. Business performance is monitored from a controlling point of view, using selected indicators from the DuPont system. Empirical research was conducted on medium and large enterprises in Bosnia and Herzegovina. The existence of a positive correlation between information quality and business performance was examined using regression analysis and correlation analysis. Regression analysis and correlation analysis indicate that return on sale (ROS) and return on assets (ROA) have a medium significant correlation with the quality of information, and total asset turnover ratio (TR) does not correlate with the quality of information. Based on the obtained results, a positive relationship between the quality of information from the ERP system and business performance was confirmed. This can be interpreted that information is becoming an increasingly important resource in supporting organizational activities, and information quality has been identified as one of the main determinants influencing the decision-making process.

The impact of internal financial determinants on the financial performance of listed mineral firms on the Vietnam Stock Exchange

This study aims to investigate the impact of internal financial factors on the financial performance of mineral firms listed on the Vietnam Stock Exchange. The research uses quantitative and qualitative methods to process the data collected. The results reveal that determinants of internal financial factors, including solvency, have a negative correlation with return on sales (ROS); firm growth rate (RG) has a positive correlation with ROS; capital structure influences the return on equity (ROE) positively, and capital structure negatively affects ROE; capital structure and DR have a negative impact on return on assets (ROA); current assets structure have a positive correlation with the ROA; CR has a negative impact on ROA; while firm RG and age have a positive correlation with ROA; the remaining determinants do not influence financial performance. Nhung, Daphné, and Huyen (2021) concluded that two variables consisting of total assets turnover ratio (ATR) and growth in sales significantly influence financial performance (FP) when it is measured by return on equity (ROE) or return on sales (ROS). However, this impact level of internal financial determinants is different. Finally, some suggestions are shown to enhance the financial performance of listed mineral firms in Vietnam

Impact of Merger and Acquisition on Financial Performance: Evidence from Construction and Real Estate Industry of India

This article aims to examine the impact of mergers and acquisitions (M&A) on the financial performance of the construction and real estate industry, using the broad spectrum of financial ratios. The period of study is from 2011 to 2020, and paired t-test methodology has been used. It is hypothesized that there is a significant difference in the pre-M&A period and post-M&A period. The study findings conclude that profitability ratio and liquidity ratio have improved significantly, whereas leverage ratio exhibits no change in performance. In the efficiency ratio, the fixed-assets turnover ratio substantially improves, but the total asset turnover ratio and current asset turnover ratio show a slight improvement. The study concludes that the Indian construction and real estate company’s financial performance has improved overall for the acquiring firms during the post-M&A period. The study implies that the construction sector supports the synergy hypothesis, stating that M&A will improve synergy during the post-M&A period because of the consolidation of two firms’ resources.

Financial and Growth Analysis: A Comparative Study of Economic Sectors of Pakistan

performance across the sectors. Taking economic group of an economy the unit of analysis, this research presents a comparative financial ratios analysis of economic groups composed of listed companies at Pakistan Stock Exchange (PSE). The analysis is based on the profitability, liquidity, efficiency, leverage, growth and trends over a period of time using 5 years data of non-financial listed companies. The results show that profitability ratios for Food, Chemicals, Cement, Motor vehicle, Fuel & energy sector and Coke sectors are performing above the overall average R.O.A and NPM while the Textile, Sugar, Manufacturing, Minerals, Information and Communication, Electric machinery and Other Services economic groups are performing below the overall averages. Sales growth of Manufacturing, Mineral product, Cement and Other services activities economic groups are performing above 50%. While Textile, Sugar, Food, Chemicals products, Motor vehicle, Fuel & energy, Info. & transport services, Coke and refined pet., Paper products and Electric machinery economic groups are performing below 50%. Sugar economic group has liquidity and total asset turnover ratio above overall average but the profitability of this economic group is below overall average. It means that the economic group is not properly utilizing its liquidity for generation of profits. Similarly, Textile sector has profitability, efficiency and liquidity below the overall average of economic groups.

Financial analysis by return on equity (ROE) and return on asset (ROA)-A comparative study of HUL and ITC

The financial performance of the top two companies of the FMCG sector HUL and ITC are analyzed in this research paper by using the two most popular financial tools of analysis i.e., ROE and ROA. Similar to the DuPont method, components of Return on Equity (ROE) and Return on Asset (ROA) are segregated to do the analysis of financial performance and to accomplish the objective. To calculate ROE and ROA, ratios such as net profit ratio (NPR), total asset turnover ratio (TATR), and equity multiplier (EQM) will be used. It is observed that the use of financial leverage was mainly responsible for the whole decrease in return on equity (ROE). In terms of return on equity, we found that the Asset Turnover Ratio increases somewhat, while in the case of ITC, the ratio either remains the same or slightly decreases in value. As a result, HUL's total asset turnover ratio (TATR) is greater than that of ITC, suggesting that HUL is more efficient in its asset use. We were able to demonstrate statistically, via the use of the One-way Anova test, that there is a significant meaningful association among the ratios.

Comparative Analysis of Financial Performance Before The Pandemic and During

In 2020, the corona virus that hit China has spread throughout the country, causing a worldwide pandemic. Global pandemic conditions will certainly affect financial performance in every industrial sector and an example is the pharmaceutical industry. The pharmaceutical industry has different financial performance conditions in response to the impact of the pandemic, including the pharmaceutical industry in Indonesia. Thus the purpose of this study was to compare the financial performance of the period before the pandemic and during the pandemic used in this study were pharmaceutical companies registered in Indonesia. The research method used is comparative quantitative. This study uses secondary data by utilizing financial reports. The number of samples is 10 go public firms of pharmaceutical companies on the Indonesian Stock Exchange (IDX). The documentation method is used to collect data. The analytical tool used in this study is to use liquidity ratios, solvency ratios, activity ratios and profitability ratios which are tested differently with the pair sample t-test. Based on the results of different tests with the pair sample t-test, it was found that differences in financial performance before and during the pandemic indicated by the ratio of total asset turnover had significant differences in financial performance, while the debt to equity ratio, current ratio, and net profit margin did not show any differences in financial performance significant.