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Journal : Advances in Applied Accounting Research

Financial Performance Analysis Using the Economic Value Added Method Indriakati, Andi Jenni
Advances in Applied Accounting Research Vol. 1 No. 2 (2023): February - May
Publisher : Yayasan Pendidikan Bukhari Dwi Muslim

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60079/aaar.v1i2.89

Abstract

Purpose: This research aimed to evaluate the financial performance of cosmetics companies traded on the Indonesia Stock Exchange (IDX) using Economic Value Added (EVA) analysis. Research Design and Methodology: The study employed a descriptive-analytical approach, using audited financial statements from PT Mustika Ratu Tbk, PT Martina Berto Tbk, and PT Mandom Indonesia Tbk for the years 2017–2019. Quantitative data derived from secondary sources were analyzed using the EVA method to assess economic performance. Findings and Discussion: Results showed that PT Mustika Ratu Tbk and PT Martina Berto Tbk achieved positive EVA values, indicating favorable economic performance. In contrast, PT Mandom Indonesia Tbk had negative EVA values, reflecting financial difficulties. EVA analysis effectively distinguishes between successful and struggling companies. Implications: The findings offer valuable insights for investors and management to evaluate corporate performance using Economic Value Added (EVA). Companies with negative EVA values should enhance financial management. Future research may apply EVA to other industries or extend the study period.