ANALYSIS OF FINANCIAL PERFORMANCE OF FINANCIAL INSITUTIONS LISTED ON INDONESIA STOCK EXCHANGE (IDX) USING PROFITABILITY RATIO, ECONOMIC VALUE ADDED (EVA), AND MARKET VALUE ADDED (MVA) METHODS

Abstract

Financial statement is an instrument used to measure the performance of the company’s management in managing the financial and corporate activity. Analyzing the company’s performance can help the investor to make a decision to invest in a company. This research aims to measure the company's financial performance in nine financial institutions companies listed on Indonesia Stock Exchange for the period of 2012 - 2016 using profitability ratio, economic value added (EVA) and market value added (MVA), also to find out which company has a good financial performance as measured with the method of profitability ratio, EVA and MVA. Using Profitability Ratio method, it showed a fluctuating result but the company is able to produce a good profit, so the expected return of investors and shareholders are fulfilled. Using Economic Value Added method, most of the companies can generate value added for the company and shareholders. While using Market Value Added method most of the company tend to generate a negative value but there are some companies which generate positive value. From the three methods used to measure the financial performance which are Profitability Ratio, Economic Value Added (EVA), and Market Value Added (MVA) the company with a good financial performance from the nine samples of financial institutions is PT. Adira Dinamika Multi Finance Tbk.