Identify Financial Ratios to Measure The Company's Financial Performance
DOI:
https://doi.org/10.59976/jebin.v1i1.7Abstract
This study aims to determine and analyze financial ratios as a tool to measure financial performance at PT. ABC is based on SOE and Theoretical Standards. This research approach is qualitative descriptive research, where qualitative descriptive research is analyzing data for problems of independent variables such as data in the form of numbers, generally not using statistics. The type of data in this study is qualitative data, namely data in the form of financial statements, namely profit/loss statements and balance sheet statements. This data collection technique is a documentation technique on secondary data sources of financial statements. The results of this study show that in the company PT. ABC shows that the financial performance of the calculation of liquidity ratios (current ratio and cash ratio) can be said to be good, and e financial performance of the calculation of solvency ratios (Debt to Equity Ratio and Debt to Asset Ratio) can be said to be good, financial performance from the calculation of profitability ratios (Return On Equity and Net Profit Margin) can be said to be less good, and financial performance from the calculation of activity ratios (Fixed Asset Turnover and Total Asset Turnover) It can be said to be not good.
Downloads
References
Abualrob, L. A. R. (2020). The effect of financial ratios derived from operating cash flows on Jordanian commercial banks earnings per share. International Journal of Financial Research, 11(1), 394–404. https://doi.org/10.5430/IJFR.V11N1P394
Altamirano, K. A. L. (2022). Financial ratios with fuzzy logic approach. New estimation perspective. Revista Venezolana de Gerencia, 27(99), 959–972. https://doi.org/10.52080/rvgluz.27.99.7
Baranes, A. (2021). Identifying financial ratios associated with companies' performance using fuzzy logic tools. Journal of Intelligent and Fuzzy Systems, 40(1), 117–129. https://doi.org/10.3233/JIFS-190109
Barsukova, S. Y. (2020). Ratio between administrative and financial resources during election campaigns in modern Russia: Regional specifics. Monitoring Obshchestvennogo Mneniya: Ekonomicheskie i Sotsial’nye Peremeny, 4, 41–59. https://doi.org/10.14515/monitoring.2020.4.1655
Batóg, B. (2021). Propositions of Transformations of Asymmetrical Nominants into Stimulants on the Example of Chosen Financial Ratios. In Studies in Classification, Data Analysis, and Knowledge Organization (pp. 83–100). https://doi.org/10.1007/978-3-030-75190-6_6
Boďa, M. (2021). Overcoming the loan-to-deposit ratio by a financial intermediation measure — A perspective instrument of financial stability policy. Journal of Policy Modeling, 43(5), 1051–1069. https://doi.org/10.1016/j.jpolmod.2021.03.012
Campbell, J. L. (2021). Do Debt Investors Adjust Financial Statement Ratios When Financial Statements Fail to Reflect Economic Substance? Evidence from Cash Flow Hedges*†. Contemporary Accounting Research, 38(3), 2302–2350. https://doi.org/10.1111/1911-3846.12656
Cengiz, H. (2020). The relationship between stock returns and financial ratios in Borsa Istanbul analyzed by the classification tree method. International Journal of Business and Emerging Markets, 12(2), 204–216. https://doi.org/10.1504/IJBEM.2020.107725
Chen, Q. (2022). Relationship between Financial Asset Allocation, Leverage Ratio, and Risk-Taking of Small- and Medium-Sized Enterprises in China: Taking Environment-Related Industries as an Example. Journal of Environmental and Public Health, 2022. https://doi.org/10.1155/2022/2431428
Filhaq, G., Aprianto, S., & Alfianto, H. (2023). Design of Smart Locker Door Using Quality Function Deployment Based on ATMega 2560 Microcontroller. Jurnal Riset Ilmu Teknik, 1(1), 25–35.
Hamal, S. (2022). A novel integrated AHP and MULTIMOORA method with interval-valued spherical fuzzy sets and single-valued spherical fuzzy sets to prioritize financial ratios for financial accounting fraud detection. Journal of Intelligent and Fuzzy Systems, 42(1), 337–364. https://doi.org/10.3233/JIFS-219195
Haque, M. I. (2020). Continued discussion on conventional versus Islamic banks: Combining financial ratios and efficiency. Banks and Bank Systems, 15(1), 132–142. https://doi.org/10.21511/bbs.15(1).2020.13
Imhanzenobe, J. O. (2020). Managers' financial practices and financial sustainability of Nigerian manufacturing companies: Which ratios matter most? Cogent Economics and Finance, 8(1). https://doi.org/10.1080/23322039.2020.1724241
Kartikasary, M. (2021). The effect of working capital management, fixed financial asset ratio, financial debt ratio on profitability in Indonesian consumer goods sector. Accounting, 7(3), 661–666. https://doi.org/10.5267/j.ac.2020.12.011
Malakhova, A. A. (2020). Reward-to-Variability Ratio as a Key Performance Indicator in Financial Manager Efficiency Assessment. In Advances in Intelligent Systems and Computing (Vol. 1225, pp. 598–613). https://doi.org/10.1007/978-3-030-51971-1_49
Musa, H. (2022). The Deterioration of Financial Ratios During the Covid-19 Pandemic: Does Corporate Governance Matter? Folia Oeconomica Stetinensia, 22(1), 219–242. https://doi.org/10.2478/foli-2022-0011
Permadi, I. N., & Nisa, D. B. (2023). A Model Experiment Design Using the Taguchi Method: A Case Study Of Making Concrete Roof. Jurnal Riset Ilmu Teknik, 1(1), 36–44.
Pohan, F., Saputra, I., & Tua, R. (2023). Scheduling Preventive Maintenance to Determine Maintenance Actions on Screw Press Machine. Jurnal Riset Ilmu Teknik, 1(1), 1–12.
Sang, N. M. (2021). Capital adequacy ratio and a bank's financial stability in Vietnam. Banks and Bank Systems, 16(4), 61–71. https://doi.org/10.21511/bbs.16(4).2021.06
Sari, T. M., & Dini, W. (2023). Risk Assessment and Mitigation Strategy in The Halal Broiler Supply Chain. Jurnal Riset Ilmu Teknik, 1(1), 13–24.
Sriram, M. (2020). Do firm specific characteristics and industry classification corroborate voluntary disclosure of financial ratios: an empirical investigation of S&P CNX 500 companies. Journal of Management and Governance, 24(2), 431–448. https://doi.org/10.1007/s10997-018-9414-z
Tsiouni, M. (2022). Improve the financial management practices in goat farms with the study of financial ratios. The case of Greece. International Journal of Managerial and Financial Accounting, 14(2), 184–196. https://doi.org/10.1504/IJMFA.2022.122226
Ulbert, J. (2022). Golden ratio-based capital structure as a tool for boosting firm's financial performance and market acceptance. Heliyon, 8(6). https://doi.org/10.1016/j.heliyon.2022.e09671
Widagdo, B. (2020). Financial Ratio, Macro Economy, and Investment Risk on Sharia Stock Return. Journal of Asian Finance, Economics and Business, 7(12), 919–926. https://doi.org/10.13106/JAFEB.2020.VOL7.NO12.919
Yousaf, M. (2022). Best proxy to determine firm performance using financial ratios: A CHAID approach. Review of Economic Perspectives, 22(3), 219–239. https://doi.org/10.2478/revecp-2022-0010
Zarei, H. (2020). Predicting auditors' opinions using financial ratios and non-financial metrics: evidence from Iran. Journal of Accounting in Emerging Economies, 10(3), 425–446. https://doi.org/10.1108/JAEE-03-2018-0027
Zhang, D. (2021). Influence of Tourism Seasonality and Financial Ratios on Hotels' Exit Risk. Journal of Hospitality and Tourism Research. https://doi.org/10.1177/10963480211016038
Zhang, D. (2022). Influence of Price Variability and Financial Ratios on Business Failure in the Atlantic Salmon Industry. Marine Resource Economics, 37(2), 183–200. https://doi.org/10.1086/718380
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Syahnisa Sari Lubis
This work is licensed under a Creative Commons Attribution 4.0 International License.
