Profitability ratio analysis to assess the financial performance
DOI:
https://doi.org/10.35335/ijafibs.v11i4.243Keywords:
Gross Profit Margin, Net Profit Margin, Return on Asset, Return on EquityAbstract
Financial ratios become an illustration in consideration materials to explain the values in the financial statements. All aspects of the business sector are crucial in paying attention to financial management in banking, industry, manufacturing, and retail. This is because the financial sector applies financial principles in an institution to create optimal value to make decisions and appropriately manage resources owned by the company. This study uses data analysis based on financial statements by measuring, knowing, illustrating, and comparing charts in financial statements, especially the balance sheet and profit and loss. Ratio analysis uses a method of financial statement analysis that looks at a certain period of years and then compares financial statements with different years through sections of the financial statements. This study aims to develop a model for reviewing financial statements from financial performance. This research is expected to make theoretical contributions to the literature in this context, including in the context of financial and banking management.
References
Buntu, B. (2023). Analisis Rasio Likuiditas, Rasio Leverage dan Profitabilitas Pada PT Telkom Indonesia (Persero) Tbk. Jurnal Ekonomi Dan Bisnis, 15(1), 1–14. https://doi.org/10.55049/jeb.v15i1.142
Fernos, J. (2017). Analisis Rasio Profitabilitas Untuk Mengukur Kinerja (Studi Kasus Pada PT. Bank Pembangunan Daerah Provinsi Sumatera Barat). Jurnal Pundi, 1(2), 107–118. https://doi.org/10.31575/jp.v1i2.25
Gu, J., Shi, X., Wang, J., & Xu, X. (2024). Examining the impact of market power discrepancy between supply chain partners on firm financial performance. International Journal of Production Economics, 268, 109100. https://doi.org/10.1016/j.ijpe.2023.109100
Gu, X., Nagarajan, N. J., Sayrak, A., & Srinivasan, D. (2023). U.S. Airline Responses to Mandated Disclosure of Non-Financial Performance. Journal of Contemporary Accounting & Economics, 100394. https://doi.org/10.1016/j.jcae.2023.100394
Gunawan, R., Widiyanti, M., Malinda, S., & Adam, M. (2022). The Effect of Current Ratio, Total Asset Turnover, Debt To Asset Ratio, and Debt To Equity Ratio on Return on Assets in Plantation Sub-Sector Companies Listed on the Indonesia Stock Exchange. International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS), 2(1), 19–28. https://doi.org/10.54443/ijebas.v2i1.139
Hadi, E. S., & Amzul, T. A. A. (2023). Pengaruh Current Ratio Terhadap Gross Profit Margin pada PT. Mayora Tbk. Periode 2010-2022. Jurnal Ekonomi Utama, 2(2), 138–142. https://doi.org/10.55903/juria.v2i2.62
Hariyanto, D. (2022). The Effect of Return on Assets and Return on Equity on Company Value with Dividends as Intervening Variables in Manufacturing Companies in the Basic and Chemical Industry Sectors Listed on the Indonesia Stock Exchange in 2017-2020. TechHub Journal, 2(1), 27–48. Retrieved from www.techhubresearch.com
Hasan, H. (2023). Analisis Profitabilitas Dalam Menilai Kinerja Keuangan Pada Pt Pos Indonesia. Ekonomi & Bisnis, 22(1), 93–108. https://doi.org/10.32722/eb.v22i1.5770
Hawaldar, I. T., Meher, B. K., Kumari, P., & Kumar, S. (2022). “Modelling the effects of capital adequacy, credit losses, and efficiency ratio on return on assets and return on equity of banks during COVID-19 pandemic.” Banks and Bank Systems, 17(1), 115–124. https://doi.org/10.21511/bbs.17(1).2022.10
Iskandar Zulkarnain, Nanda Sulistiyowati, & Sjukun. (2022). The Effect of Return on Equity and Debt To Equity Ratio on Stock Prices in the Company Transportation Sub Sector Listed on the Indonesia Stock Exchange for the 2015-2019 Period. International Journal of Social Science, 1(6), 955–966. https://doi.org/10.53625/ijss.v1i6.1666
Jajuli, Sofi’i, I., & Haryadi, D. (2023). Moderation of non-performing financing on the effect of buying and selling financing on return on assets empirical study on Islamic banking in Indonesia in 2015-2020. International Journal of Applied Finance and Business Studies, 11(21), 231–238.
Kusz, D., Bąk, I., Szczecińska, B., Wicki, L., & Kusz, B. (2023). Determinants of Return-on-Equity (ROE) of Biogas Plants Operating in Poland. Energies, 16(1). https://doi.org/10.3390/en16010031
Lasabuda, N. L. M. P., Pelleng, F. A. O., & Tampi, D. L. (2019). Analisis Rasio Kinerja Keuangan pada PT Telekomunikasi Indonesia (Persero), Tbk. Productivity, 1(2), 154–162.
Mujari. (2019). Analisis Laporan Keuangan Untuk Mengukur Kinerja Keuangan Perusahaan Telekomunikasi Yang Terdaftar Di Bursa Efek Indonesia. Proceedings of the Institution of Mechanical Engineers, Part J: Journal of Engineering Tribology, 224(11), 122–130.
Mus, I. M. (2021). Analisis Kinerja Keuangan Pada PT. Unilever Indonesia Tbk di Bursa Efek Indonesia Tahun 2018-2020. Jurnal Manajemen Keuangan, 1, 1–21.
Nguyen, P. N.-D., Mai, K. N., & Le, T.-H. (2023). Strategic perspectives, creativity, and financial performance in Vietnamese SMEs. Heliyon, 9(9), e20354. https://doi.org/10.1016/j.heliyon.2023.e20354
Noordiatmoko, D. (2020). Analisis Rasio Profitabilitas Sebagai Alat Ukur Untuk Menilai Kinerja Keuangan Pada Pt Mayora Indah Tbk, Periode 2014-2018. Jurnal Parameter, 5(4), 38–51.
Nur, L. Z., Riyadi, W., & Hernita, N. (2023). Effect of Gross Profit Margin and Dividend Policy on Stock Price (Case Study of Food and Beverage Companies Listed on the IDX for the 2016-2021 Period). Journal of International Conference Proceedings, 6(2), 222–231. https://doi.org/10.32535/jicp.v6i2.2443
Saputra, F. (2022). The effect of return on equity, earning per share and price earning ratio to the stock prices of manufacturing companies listed in the Indonesia stock exchange. Dinasti International Journal of Economics, Finance and Accounting (DIJEFA), 3(1), 82–94. Retrieved from http://repository.uph.edu/41805/%0Ahttp://repository.uph.edu/41805/4/Chapter1.pdf
Supsermpol, P., Huynh, V. N., Thajchayapong, S., & Chiadamrong, N. (2023). Predicting financial performance for listed companies in Thailand during the transition period: A class-based approach using logistic regression and random forest algorithm. Journal of Open Innovation: Technology, Market, and Complexity, 9(3), 100130. https://doi.org/10.1016/j.joitmc.2023.100130
Wenda, A., & Ditilebit, N. (2021). Analisis Likuiditas Dan Profitabilitas Untuk Menilai Kinerja Keuangan Pada Pt. Telekomunikasi Indonesia, Tbk. Jurnal Ekonomi Dan Bisnis, 11(2), 33–42. https://doi.org/10.55049/jeb.v11i2.79
Winarno, S. H. (2017). Penilaian Kinerja Keuangan Perusahaan Melalui Analisis Profitabilitas. Jurnal Moneter, IV(2), 106–112.
Zhafira, A., & Lubis, A. (2023). Analisis Pengaruh Gross Profit Margin Dan Return on Equity Terhadap Harga Saham Pada Perusahaan Sektor Infrastruktur Yang Terdaftar Di Bursa Efek Indonesia Periode 2020-2022. COMSERVA : Jurnal Penelitian Dan Pengabdian Masyarakat, 3(4), 1459–1467. https://doi.org/10.59141/comserva.v3i4.943
Zhang, W., Chen, F., Liu, E., Zhang, Y., & Li, F. (2023). How does digital inclusive finance promote the financial performance of Chinese cultural enterprises? Pacific-Basin Finance Journal, 82, 102146. https://doi.org/10.1016/j.pacfin.2023.102146
Zhang, X., Q., Dai, Z., & Zhang, X. (2023). The impact of carbon markets on the financial performance of power producers: Evidence based on China. Energy Economics, 127, 107119. https://doi.org/10.1016/j.eneco.2023.107119
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 International Journal of Applied Finance and Business Studies
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
