Journal of Applied Business, Taxation and Economics Reseach
Vol. 2 No. 2 (2022): December 2022

Comparison Analysis of EVA and ROA Methods in Assessing The Financial Performance of The Company

Ita Lestari (Universitas Sultan Ageng Tirtayasa)
Susanti Susanti (Universitas Sultan Ageng Tirtayasa)
Ewing Yuvisa Ibrani (Universitas Sultan Ageng Tirtayasa)
Mahpudin Mahpudin (Universitas Bina Bangsa)



Article Info

Publish Date
23 Nov 2022

Abstract

This study aims to determine the company's financial performance by using a comparative analysis of the Economic Value Added (EVA) and Return On Assets (ROA) methods. This study employed pre-field research techniques and on-site fieldwork to conduct descriptive qualitative research. Secondary data, data gathering methods utilizing report studies and literature analyses, and data analysis methods utilizing data collection, data reduction, data presentation, and data inference techniques are all used as the data sources. To verify the accuracy of the data, the author uses three sources and three different techniques. The results showed that EVA INDF in the 2014-2016 period produced an EVA value < 0, which could be interpreted as unfavorable, ICBP, MYOR, and ROTI in the 2014-2018 period, on average, produced an EVA value > 0 which could be construed as positive. Except for ROTI in the last three years which resulted in an EVA < 0. Meanwhile, ROA INDF, ICBP, MYOR, and ROTI in 2014-2018 produced an average ROA value above the industry standard or can be said to be good. Except for INDF in 2015, 2017, and 2018, the average ROA value is below industry standards. This study concludes that EVA analysis is better because if the average value of EVA is> 0, then the company can provide added value to investors. At the same time, the ROA analysis produces an average ROA value below the industry standard.

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Journal Info

Abbrev

jabter

Publisher

Subject

Economics, Econometrics & Finance

Description

This journal aims to take part in the advancement of knowledge in economics and business by publishing high quality research on contemporary trends in economics and business in emerging markets or countries. As the journal main horizon is to embrace contemporary trends in applied business, taxation, ...