A Quantitative Analysis of Indian Banksâ Performance and Efficiency-A Panel R...Saurabh Trivedi
Â
In this report, an attempt has been made to analyze the effects of various internal factors and the effect of ownership structure on the profitability and the efficiency of a bank. The methodology used for the analysis is that of Panel Regression which becomes relevant when there are data for a period of time for each of the units being considered and thus, becomes readily applicable to the present case because for the banks that have been considered in this paper, the data on the relevant variables are available for several years
This paper uses the theory of behavioral finance to examine the factors of individual investorsâ psychology as well as their effects on investment decisions in the Vietnam Stock Exchange (VSE). This is an empirical study which based on a survey of 422 investors. All of them have had the deep knowledge about finance investment and worked many years in VSE. The final results show that five factors of psychology which are overconfidence, optimism, herd behavior, psychology of risk and pessimistic have influence on investment decisions. To be more detailed, excessive optimism, psychology of risk and excessive pessimistic affect positively on long-term investment of investors while overconfidence and herd behavior have the negative impact. Based on the theory of behavioral finance, this study explains factors of individual investorsâ psychology. However, one of the limited of this paper is that it does not mention about negative outcomes of psychology factors on investment decisions. This is considered as a new path to do research in the future for emerging markets like Vietnam.
A Quantitative Analysis of Indian Banksâ Performance and Efficiency-A Panel R...Saurabh Trivedi
Â
In this report, an attempt has been made to analyze the effects of various internal factors and the effect of ownership structure on the profitability and the efficiency of a bank. The methodology used for the analysis is that of Panel Regression which becomes relevant when there are data for a period of time for each of the units being considered and thus, becomes readily applicable to the present case because for the banks that have been considered in this paper, the data on the relevant variables are available for several years
This paper uses the theory of behavioral finance to examine the factors of individual investorsâ psychology as well as their effects on investment decisions in the Vietnam Stock Exchange (VSE). This is an empirical study which based on a survey of 422 investors. All of them have had the deep knowledge about finance investment and worked many years in VSE. The final results show that five factors of psychology which are overconfidence, optimism, herd behavior, psychology of risk and pessimistic have influence on investment decisions. To be more detailed, excessive optimism, psychology of risk and excessive pessimistic affect positively on long-term investment of investors while overconfidence and herd behavior have the negative impact. Based on the theory of behavioral finance, this study explains factors of individual investorsâ psychology. However, one of the limited of this paper is that it does not mention about negative outcomes of psychology factors on investment decisions. This is considered as a new path to do research in the future for emerging markets like Vietnam.
Macroeconomic and Institutional Determinants of Capital Market Performance in...Fakir Tajul Islam
Â
This paper examines the institutional and macroeconomic
determinants of stock market performance using data in the last 20 years starting from 1995 to 2015. In this
paper, Gross Domestic Product (GDP), Consumer Price Index (CPI), inflation rate and Foreign Direct Investment
(FDI) inflows were used as the proxy of macroeconomic determinants, whereas market capitalization, total
issued capital and market turnover of Dhaka Stock Exchange were the proxy of institutional determinants of
capital market performance.
Macroeconomic Variables on Stock Market Interactions: The Indian ExperienceIOSR Journals
Â
To examine the effect of macroeconomic variables on the stock price movement in Indian Stock Market. Six variables of macro-economy (inflation, exchange rate, Industrial production, MoneySupply, Goldprice, interest rate) are used as independent variables. Sensex, Nifty and BSE 100are indicated as dependent variable. The monthly time series data are gathered from RBI handbook over the period of April 2008 to June 2012. Multiple regression analysis is applied in this paper to construct a quantitative model showing the relationship between macroeconomics and stock price. The result of this paper indicates that significant relationship is occurred between macroeconomics variableâs and stock price in India.
Forecasting Stocks with Multivariate Time Series Models.inventionjournals
Â
This work seeks to forecast stocks of the Nigerian banking sector using probability multivariate time series models. The study involved the stocks from six different banks that were found to be analytically interrelated. Stationarity of the six series were obtained by differencing. Model selection criteria were employed and the best fitted model was selected to be a vector autoregressive model of order 1. The model was subjected to diagnostic checks and was found to be adequate. Consequently, forecasts of stocks were generated for the next two years.
METHODOLOGICAL APPROACHES TO ANALYSIS OF CORRELATION RELATIONSHIPS BASED ON E...IAEME Publication
Â
Clear economic activity management is one of the most essential aspects of any
companyâs stable financial standing under contemporary conditions. Economic
activity management at a company is impossible without an in-depth and detailed
study of all the processes related to it. Analytics is of paramount importance for
managing a companyâs settlement system.
This article is devoted to analyzing of correlations/correlation relationships
analysis methods based on economic statistics. The correlation analysis is used to
measure the strength of a relationship between variables and to evaluate the factors
that affect the result attribute the most, which distinguishes it from regression analysis
used to select the relationship form, model type, to determine rated values of the result
attribute. The regression and correlation analysis methods are used holistically. Pair
correlation aimed at studying correlations of a factor attribute and a result attribute
can be regarded as the most developed theoretically and used in practice. Such study
is called single-factor correlation and regression analysis used as the basis for
studying multi-factor stochastic relationships. The article also examines the approach
Understanding Stock Returns as a Combination of Speculative and Fundamental G...ijtsrd
Â
The Indian stock market returns are largely speculative in nature. Taking twenty stocks off of the Sensex, the Total return of the stock was split into the fundamentally arising returns and the speculative return. This revealed the speculative nature of the Indian Stock market. What this means is that, the good stocks with strong fundamentals may have a low total return as a result of low speculative returns, similarly fundamentally weak stocks may potentially have high speculative returns, resulting in high total returns. Thus, a bifurcation of this sort can help investors with different investment objectives, horizons and risk appetite, invest to achieve their goals. Sanishtha Bhatia | Anshika Lara | Danvi Shah | Shanav Jalan | Shreejit Sawant "Understanding Stock Returns as a Combination of Speculative and Fundamental Growth: An Emperical Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-5 , August 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31742.pdf Paper Url :https://www.ijtsrd.com/economics/finance/31742/understanding-stock-returns-as-a-combination-of-speculative-and-fundamental-growth-an-emperical-study/sanishtha-bhatia
Analysis of Demand and Supply Commodities Originally A Region (Case Study; Pr...QUESTJOURNAL
Â
ABSTRACT: This study aims to provide information about the structure of supply and demand which have an important role in shaping the economic structure regional.Identified strengths and weaknesses of the economic sector and gives an overview of the potential and the barriers to the development of the existing economy. .In Addition, the study can be a model of the original commodity analysis of a region. The analytical method used is to utilize the model of Table I-O to provide a descriptive overview of the structure of demand and supply. Given the complexity of the tables I-O, the description given might be in general (macro) and integrate the linkages between sectors. The analysis finds fourteen commodity that has considerable value in terms of both demand and in terms of deals namely; Rice, Cocoa, sea fish and other results, Nickel, Industrial rice, Manufacture of fertilizers and pesticides, Industrial goods other chemicals, industrial goods produced oil refineries, cement industry, Industrial machinery and equipment, land transportation equipment industry, building shelter, services trade and public governance services. Generally, the fourteenth of these commodities have a significant impact on the economy South Sulawesi.Rice,Nickel and services trade is a commodity that is essential for perekonomian.Informasi about the structure of supply and demand for the commodity could be used as a reference for development planning in the region of south Sulawesi,
Financial Performance Analysis of Bank of Bhutan Limited using Regression Ana...ijtsrd
Â
This study analyses the financial performance of the Bank of Bhutan Limited BOBL . To measure the performance of BOBL, the factors affecting the profitability of the bank have been analysed. The data for the study are collected from the published annual reports of BOBL for the period of 2009 2020. Regression analysis is used to evaluate the financial performance of the bank. Return on Investment ROI is used as a dependent variable, and Return on Assets ROA , Total Expense Ratio TER , Loans and Advances to Total Assets Ratio LTAR and Spread to Total Deposit Ratio STDR are used as independent variables. The findings of the study indicate that TER has a positive relationship with the profitability of BOBL whereas LTAR has a negative relation with BOBLâs profitability. Hence, it is concluded that among four independent variables, ROA and TER had significant impact on the profitability of BOBL. Dr. Aaditya Pradhan | Mr. Ugyen Thinlay "Financial Performance Analysis of Bank of Bhutan Limited using Regression Analysis" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd58589.pdf Paper URL: https://www.ijtsrd.com.com/management/accounting-and-finance/58589/financial-performance-analysis-of-bank-of-bhutan-limited-using-regression-analysis/dr-aaditya-pradhan
Macroeconomic and Institutional Determinants of Capital Market Performance in...Fakir Tajul Islam
Â
This paper examines the institutional and macroeconomic
determinants of stock market performance using data in the last 20 years starting from 1995 to 2015. In this
paper, Gross Domestic Product (GDP), Consumer Price Index (CPI), inflation rate and Foreign Direct Investment
(FDI) inflows were used as the proxy of macroeconomic determinants, whereas market capitalization, total
issued capital and market turnover of Dhaka Stock Exchange were the proxy of institutional determinants of
capital market performance.
Macroeconomic Variables on Stock Market Interactions: The Indian ExperienceIOSR Journals
Â
To examine the effect of macroeconomic variables on the stock price movement in Indian Stock Market. Six variables of macro-economy (inflation, exchange rate, Industrial production, MoneySupply, Goldprice, interest rate) are used as independent variables. Sensex, Nifty and BSE 100are indicated as dependent variable. The monthly time series data are gathered from RBI handbook over the period of April 2008 to June 2012. Multiple regression analysis is applied in this paper to construct a quantitative model showing the relationship between macroeconomics and stock price. The result of this paper indicates that significant relationship is occurred between macroeconomics variableâs and stock price in India.
Forecasting Stocks with Multivariate Time Series Models.inventionjournals
Â
This work seeks to forecast stocks of the Nigerian banking sector using probability multivariate time series models. The study involved the stocks from six different banks that were found to be analytically interrelated. Stationarity of the six series were obtained by differencing. Model selection criteria were employed and the best fitted model was selected to be a vector autoregressive model of order 1. The model was subjected to diagnostic checks and was found to be adequate. Consequently, forecasts of stocks were generated for the next two years.
METHODOLOGICAL APPROACHES TO ANALYSIS OF CORRELATION RELATIONSHIPS BASED ON E...IAEME Publication
Â
Clear economic activity management is one of the most essential aspects of any
companyâs stable financial standing under contemporary conditions. Economic
activity management at a company is impossible without an in-depth and detailed
study of all the processes related to it. Analytics is of paramount importance for
managing a companyâs settlement system.
This article is devoted to analyzing of correlations/correlation relationships
analysis methods based on economic statistics. The correlation analysis is used to
measure the strength of a relationship between variables and to evaluate the factors
that affect the result attribute the most, which distinguishes it from regression analysis
used to select the relationship form, model type, to determine rated values of the result
attribute. The regression and correlation analysis methods are used holistically. Pair
correlation aimed at studying correlations of a factor attribute and a result attribute
can be regarded as the most developed theoretically and used in practice. Such study
is called single-factor correlation and regression analysis used as the basis for
studying multi-factor stochastic relationships. The article also examines the approach
Understanding Stock Returns as a Combination of Speculative and Fundamental G...ijtsrd
Â
The Indian stock market returns are largely speculative in nature. Taking twenty stocks off of the Sensex, the Total return of the stock was split into the fundamentally arising returns and the speculative return. This revealed the speculative nature of the Indian Stock market. What this means is that, the good stocks with strong fundamentals may have a low total return as a result of low speculative returns, similarly fundamentally weak stocks may potentially have high speculative returns, resulting in high total returns. Thus, a bifurcation of this sort can help investors with different investment objectives, horizons and risk appetite, invest to achieve their goals. Sanishtha Bhatia | Anshika Lara | Danvi Shah | Shanav Jalan | Shreejit Sawant "Understanding Stock Returns as a Combination of Speculative and Fundamental Growth: An Emperical Study" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-5 , August 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31742.pdf Paper Url :https://www.ijtsrd.com/economics/finance/31742/understanding-stock-returns-as-a-combination-of-speculative-and-fundamental-growth-an-emperical-study/sanishtha-bhatia
Analysis of Demand and Supply Commodities Originally A Region (Case Study; Pr...QUESTJOURNAL
Â
ABSTRACT: This study aims to provide information about the structure of supply and demand which have an important role in shaping the economic structure regional.Identified strengths and weaknesses of the economic sector and gives an overview of the potential and the barriers to the development of the existing economy. .In Addition, the study can be a model of the original commodity analysis of a region. The analytical method used is to utilize the model of Table I-O to provide a descriptive overview of the structure of demand and supply. Given the complexity of the tables I-O, the description given might be in general (macro) and integrate the linkages between sectors. The analysis finds fourteen commodity that has considerable value in terms of both demand and in terms of deals namely; Rice, Cocoa, sea fish and other results, Nickel, Industrial rice, Manufacture of fertilizers and pesticides, Industrial goods other chemicals, industrial goods produced oil refineries, cement industry, Industrial machinery and equipment, land transportation equipment industry, building shelter, services trade and public governance services. Generally, the fourteenth of these commodities have a significant impact on the economy South Sulawesi.Rice,Nickel and services trade is a commodity that is essential for perekonomian.Informasi about the structure of supply and demand for the commodity could be used as a reference for development planning in the region of south Sulawesi,
Financial Performance Analysis of Bank of Bhutan Limited using Regression Ana...ijtsrd
Â
This study analyses the financial performance of the Bank of Bhutan Limited BOBL . To measure the performance of BOBL, the factors affecting the profitability of the bank have been analysed. The data for the study are collected from the published annual reports of BOBL for the period of 2009 2020. Regression analysis is used to evaluate the financial performance of the bank. Return on Investment ROI is used as a dependent variable, and Return on Assets ROA , Total Expense Ratio TER , Loans and Advances to Total Assets Ratio LTAR and Spread to Total Deposit Ratio STDR are used as independent variables. The findings of the study indicate that TER has a positive relationship with the profitability of BOBL whereas LTAR has a negative relation with BOBLâs profitability. Hence, it is concluded that among four independent variables, ROA and TER had significant impact on the profitability of BOBL. Dr. Aaditya Pradhan | Mr. Ugyen Thinlay "Financial Performance Analysis of Bank of Bhutan Limited using Regression Analysis" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd58589.pdf Paper URL: https://www.ijtsrd.com.com/management/accounting-and-finance/58589/financial-performance-analysis-of-bank-of-bhutan-limited-using-regression-analysis/dr-aaditya-pradhan
Discuss financial statements- financial statement analysis and ratio a.docxrtodd615
Â
Discuss financial statements, financial statement analysis and ratio analysis
Discuss financial statements, financial statement analysis and ratio analysis
Solution
The financial statements include income statement, balance sheet, cash flow statement and statement of changes in stockholder\'s equity . The purpose of preparing these financial statements is to ensure that the stakeholders of the company are provided with the correct and reliable information on the operations and financial aspects of the company. These statements are frequently used by various parties for investment purposes and understand growth prospects of the company (by investors), to grant loans (by banks and financial institutions) and for tax related issues (by government and state-tax authorities). Important information as to the ownership of the company, assets and liabilities can also be obtained from the balance sheet of the company. Current cash flow position can also be evaluated with the use of cash flow statement.
Financial statement analysis is performed to evaluate the current financial position of the company. Analysts use techniques such as horizontal, vertical and ratio analysis to determine the financial performance of the company over a particular period. Information for 2 or more periods is compared with the use of these tools to analyze the growth/decline in the company\'s overall financial performance/soundness. It is on the basis of information derived from financial statement analysis, that various decisions relating to investment (in the company) are made by outside parties. The company can also perform such comparisons for investing money in growth and expansion projects.
Ratio analysis is considered as one of the most important tools for financial analysis. Different types of ratios can be calculated to determine the liquidity (short term financial position) and solvency (long term financial position) of the company. Overall profitability and operational efficiency can also be determined with the use of ratios. Various forms of ratios can be calculated and compared with the ratios of other companies within the same industry to determine the company\'s overall financial and operational performance. Calculation and comparision of ratios over a period of years can also provide highly useful results with respect to the profitability and growth of the company.
.
Liquidity Management and Its Impact on Banks Profitability: A Perspective 0f ...inventionjournals
Â
Purpose:-The basic aim of this research is to examine liquidity management impact on profitability in banking sector of Pakistan. Methodology: - The secondary data used for this study and taking from publish annual report of ten banks (2006-2015). The data was analyzed by using correlation, descriptive statistics and regression techniques run on E-views. The quick, current, cash, interest coverage and capital adequacy ratios are taken as dimension of liquidity and return on asset, return on equity, and earning per share as dimension of profitability. Findings: - The research finding shows that quick and capital adequacy ratio has positive impact on banks profitability determinants earnings per share and return on assets. The cash and current ratio has a negative relationship with return on assets. While interest coverage ratio is positively associated with return equity and earnings per share and is negatively associated with return on equity. Therefore overall empirical results show that liquidity management has positive impact on banks profitability. Research Limitation: - This paper examines banks liquidity management and their impact on banks profitability in Pakistan by taking only ten conventional banks data for ten year. The further research can be conducted by adding different segment, banks and countries.
AN ANALYSIS OF INCOME AND EXPENDITURE WITH SPECIAL REFERENCE TO BMTC, BANGALOREIAEME Publication
Â
The motivation behind this investigation is to dissect the pay and consumption of BMTC by applying basic normal estimation technique. As far as contrasting its exhibition and proficiency for 3years. It analyzes the data found inside an organization's benefit and misfortune account. The examination depended on optional information from records, reports and profile of the Bangalore metropolitan vehicle enterprise. Basic normal strategy is a technique which can be gotten by the normal pace of earnings and consumption things in the fiscal report and can be determined by duplicating the complete of the units essentially by the quantity of getting factors. A goal of the investigation incorporates examining the productivity, perceiving the feeble functional regions and friends' in general monetary exhibition with appropriate idea for a superior adequacy and to defeat from the frail regions dissected in the organization. Transport is viewed as the existence line of the economy of the country. A productive street transport area, specifically, assumes a pivotal part in a district's financial advancement and development. Uniting both organic market sides, street transport area impacts whole range of social and financial exercises of a country. As of now, BMTC is one of the better run transport frameworks in the country.
Liquidity Management and Its Impact on Banks Profitability: A Perspective 0f ...inventionjournals
Â
The basic purpose of this research is to examine the effect of liquidity management on profitability in the banking sector of Pakistan. Liquidity management is independent and profitability is dependent variable. The secondary data used for this study and taking from publish annual report of ten banks (2006-2015). The data was analyzed by using correlation, descriptive statistics and regression techniques run on E-views. The quick, current, cash, interest coverage and capital adequacy ratios is taken as dimension of liquidity and return on assets, return on equity, and earnings per share as dimension of profitability. The research findings show that interest coverage, capital adequacy and quick ratio has a positive whereas the cash and current ratio has negative relationship with banks profitability.
Liquidity Management and Its Impact on Banks Profitability: A Perspective 0f ...inventionjournals
Â
The basic purpose of this research is to examine the effect of liquidity management on profitability in the banking sector of Pakistan. Liquidity management is independent and profitability is dependent variable. The secondary data used for this study and taking from publish annual report of ten banks (2006-2015). The data was analyzed by using correlation, descriptive statistics and regression techniques run on E-views. The quick, current, cash, interest coverage and capital adequacy ratios is taken as dimension of liquidity and return on assets, return on equity, and earnings per share as dimension of profitability. The research findings show that interest coverage, capital adequacy and quick ratio has a positive whereas the cash and current ratio has negative relationship with banks profitability.
Finance is the lifeblood and lifeline of any business entity either commercial or non-commercial. The
Survival, Stability and Sustainability of a firm is highly associated with its financial wellness. It can be observed through its ability to pay(re) short-term as well as long term liabilities, meeting the regular financial obligations, to increase the value of firm and ability to generate profit. Financial analysis, evaluation, and assessment help in determines the financial position and financial strength of a firm. Among the plenty of methods and tolls available for financial performance, ratio analysis is more useful and meaningful. These ratios make it possible to analyze the evolution of the financial situation of a firm (trend analysis), cross-sectional analysis and comparative analysis.
CARA MEMBACA ANALISIS LAPORAN KEUANGAN ( How to Analysis Financial Statment) ...Riki Ardoni
Â
Terdapat beberapa teknik yang dapat dipakai untuk melakukan analisis terhadap laporan keuangan, berikut beberapa teknik yang digunakan dengan berbagai metode.
1. Teknik Analisis Sumber dan Penggunaan Dana
2. Teknik common size statement.
3. Teknik Analisis Tren.
4. Teknik Analisis Rasio.
5. Analisis Kebangkrutan Z-Score
This research aims to identify and analyze the effect of Capital Adequacy Ratio (CAR), Operation Expense (BOPO), Net Interest Margin (NIM), and Non Performing Loan (NPL) of the Loan to Deposit Ratio (LDR) of conventional bank on the Indonesia Stock Exchange period 2012 â 2017, either simultaneously or partially. Independent variables used in this study is CAR, BOPO, NIM and NPL, while LDR as the dependent variable.The population in this research is conventional bank listed on the Indonesia Stock Exchange. The sampling technique in this research is purposive sampling. The number of samples in accordance with the prescribed criteria are as many as 35 samples. Based on the result of the research found that the variable CAR influences negatively insignificantly toward LDR, BOPO and NIM influences positively insignificantly toward LDR, while the variable NPL influences positively significantly toward CAR. But simultaneously CAR, BOPO, NIM, and NPL jointly affect the LDR.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
American Journal of Multidisciplinary Research and Development is indexed, refereed and peer-reviewed journal, which is designed to publish research articles.
1. American Journal of Multidisciplinary Research & Development (AJMRD)
Volume 2, Issue 10 (October- 2020), PP 08-15
ISSN: 2360-821X
www.ajmrd.com
Multidisciplinary Journal www.ajmrd.com Page | 8
Research Paper Open Access
Analysis of Financial Performance Using the Trend Approach
1
Nella Yantiana, 2
Sari Rusmita
1,2
Fakultas Ekonomi dan Binsis, Universitas Tanjungpura, Pontianak, Indonesia
*Corresponding Author: 1
Nella Yantiana
ABSTRACT: The development of the profitability ratio achieved can show the projection of long-term
profitability. This research will use trend analysis (least square method), where the trend line will describe the
development of profitability. The data used are roa and roe 8 years (2010-2017). The results of this study
indicate the performance of pt. The west kalimantan regional development bank, which is proxied by the roa and
roe ratios for 2010-2017, tends to decline. And prediction or forecasting the performance of pt. The west
kalimantan regional development bank in 2018-2021 shows a decrease in the profitability ratio both in terms of
roa and roe.
Keywords: Financial Performance; Financial Statements; Trends.
I. INTRODUCTION
Information about an entity's finances is indispensable for users or parties who need this
information, both from external and internal parties. Financial information presented from the financial
statements of an entity shows whether the entity is progressing or vice versa. So that the financial statements
become because they can describe the condition of an entity, especially in banking. As collectors and
distributors of society, information from the financial statements of a bank is of course important and at the
same time the center of attention of interested parties on this information.
Apart from that, banks also have an important role in the economy, so that every country will
continue to strive so that banks are always in a safe, healthy and stable condition. Banks have a role in current
economic development. Banks as intermediary institutions play an important role in mobilizing public funds to
be rotated as a major source of financing for the business world, both for investment and production, in order to
encourage economic growth.
The role of the Bank as a payment system traffic service provider to accelerate economic activity.
An efficient, safe and smooth payment system will have an impact on the running of the economy well. In
addition, banks also function as a medium for accelerating monetary policy issued by the central bank which
aims to maintain price stability and economic growth.
Seeing that the role of the Bank is quite large in the economic development of a country, it is
important to see and assess the performance of a bank, especially banks owned by the state or region The
performance of an entity can be illustrated in its profitability ratio, so that the profitability ratio can be used as
an assessment of the performance of an entity, because the profitability ratio can describe the level of the entity's
ability to generate income or income that is reflected in company profits, the management as executor of an
entity responsibility will take place. Research Veno and Syamsudin (2016) and Indrawati (2017) use Return On
Equity as a measure of entity performance. In addition, the management has the responsibility, namely the
responsibility to obtain funds to finance assets and the responsibility to use the assets owned by the company in
order to earn income (Prastowo, 2002: 38).
However, profitability is one of the ratio analyzes that only compares several account values in the
financial statements, this is a weakness in ratio analysis so that the analyzed data is not detailed on each account.
The weakness of ratio analysis can be overcome through trend analysis of financial statements. Trend analysis is
able to compare all the values in the financial statements according to what you want to compare. The advantage
of trend analysis is that the analysis method is carried out by comparing financial reports for several years
(periods), so that developments and trends can be seen, this analysis is able to compare the same items for
different years or periods because this method moves from year to year (Prastowo and Julianty, 2005: 59).
Meanwhile, ratio analysis only shows the relationship between one element and another in the financial
statements. The relationship between the elements of the financial statements is expressed in simple
mathematical form, or comparing accounts with each other in one period and multiplied by 100 percent
(Jumingan, 2009: 118). Concluding from the two literatures above, the trend method will be used in this study.
2. Analysis Of Financial Performance Using The Trend Approach
Multidisciplinary Journal www.ajmrd.com Page | 9
According to Munawir (2010: 64), analyzing the relationship of a post in a financial report is the
basis for being able to interpret the financial condition and results of operations of a company. By using
comparable reports, including data on changes in rupiah amounts, percentages and trends, the analyzer considers
that individual ratios will assist in analyzing and interpreting the financial position of a company.
According to Maryati (2010; 129), a trend is a movement (tendency) to go up or down in the long
term, which is obtained from the average change over time. The rate of change can increase or decrease. If the
rate of change increases, it is called a positive trend or the trend has an upward tendency. Conversely, if the
average change decreases, it is called a negative trend or a trend that has a downward trend.
Trend is a prediction of a variable with time independent variables or the movement of a periodic
series over several years and tends to go in a direction, where the direction can go up, horizontally, or down
(Ibrahim, 2003). Forecasting has the meaning as an estimate or prediction of something that will happen in the
future based on past events that are scientifically analyzed, especially using statistical methods. One of the
statistical tools that can be used to estimate the state of a business in the future based on past data is a trend
(Veno and Syamsudin, 2016).
This study aims to determine the trend of the financial performance of Bank Kalbar as a bank
owned by the Regional Government of West Kalimantan. By looking at the development of the profitability
ratio achieved by Bank Kalbar and to project in the long term using trend analysis (least square method), where
the trend line will describe the development of profitability.
The demand for improved performance in an entity, especially in banking which has an important
role in the development of the country's economy, encourages analysis of the development of financial
performance in an entity because it can illustrate the entity's ability to earn profits or income for the entity,
especially in entities owned by the entity. regional government. Based on this, this research wants to try to see
how the trend of Bank Kalbar's financial performance? and predicting or estimating the ratio of Return On Asset
(ROA) and Return On Equity (ROE) which will be obtained by Bank Kalbar for 2020 and 2021.
II. METHODS
This research method is a descriptive method, by collecting data, compiling data, classifying data,
and interpreting data so that the data collected can provide a clear picture of the condition of the company
regarding the problem to be studied.
The type of data used in this study is secondary data. Data in the form of Bank Kalbar's financial
ratios, the processed financial statements of Bank Kalbar for the 2010-2017 period that have been audited and
then published. The ratios used are Return on Equity (ROE) and Return on Assets (ROA).
Purnomo (1998) states that stock prices are sensitive to changes in ROE. Profitability ratio is a ratio
that describes the company's ability to generate profits by using the capital that is embedded in it. Return on
Equity (ROE) profitability ratio. This ratio measures the company's ability to earn available profits by the
company's shareholders. Return on Equity (ROE) is calculated using the formula (Prihadi, 2010: 160):
Return on Equity (ROE) = net profit / own capital
ROA is a ratio that measures how efficient a company is in managing its assets to generate profits
during a period. ROA calculations can be calculated with the following formula (Prihadi, 2010; 152):
Return on Assets (ROA) = Net profit after Tax / Total Assets (or average Total Assets)
The data analysis technique in this study is a data analysis method that is related to formulas and
numbers related to financial ratio analysis:
1. Calculating the financial ratios of Bank Kalbar regarding profitability ratios, especially ROA and ROE;
2. Creating a table of Bank Kalbar financial ratios;
3. Analyze the financial profitability ratios of Bank Kalbar using time series analysis; and
4. Conclude the results of the analysis method using time series analysis, namely the Least Square Method. The
linear equation for time series analysis is ;
Y = a + bx
Information :
y = dependent variable (not independent) whose trend is sought.
x = independent variable (free) using time (usually in years).
a = constant value
b = coefficient indicating the average change in y for each one x change
Meanwhile, to find the constant values a and b, the equation can be used:
a = ây / n and b = âxy / âx2
3. Analysis Of Financial Performance Using The Trend Approach
Multidisciplinary Journal www.ajmrd.com Page | 10
III. RESULTS
The long-term financial performance of the company can be seen by the profitability achieved by
the company. Profitability is the ability to generate profits (profit) during a certain period by using productive
assets or capital, both capital as a whole and own capital (Van Horn and Wachowiez, 1997: 148-149).
Sartono (2001: 119) defines profitability as the company's ability to earn profits in relation to sales,
total productive assets and own capital. This profitability ratio will provide an overview of the level of
effectiveness of company management. The greater the profitability, the better, because the prosperity of the
owner of the company increases with the greater the profitability.
The following is the financial development obtained by PT. West Kalimantan Regional
Development Bank for the last 8 years.
Table 1. Financial Development PT. West Kalimantan Regional Development Bank.
Description 2010 2011 2012 2013 2014 2015 2016 2017
Total assets 5.868.875 7.126.170 8.394.579 9.640.826 11.215.933 13.035.213 14.006.975 16.575.747
Third-party funds 4.677.054 6.188.699 6.880.752 8.080.189 9.355.433 10.907.226 11.227.152 13.710.510
Credit Given 3.944.684 4.796.968 5.972.213 7.045.648 8.148.044 9.020.153 9.733.167 10.637.856
Paid in capital 239.823 307.301 388.441 471.581 624.793 743.054 811.194 961.694
Current year profit 168.745 173.899 216.089 245.669 262.602 289.520 307.704 338.212
Source: PT. West Kalimantan Regional Development Bank, 2018
The development of the financial performance of PT. The West Kalimantan Regional Development
Bank from 2010 to 2017 shows an increase. It can be seen that the number of assets, funds from third parties,
loans, paid-in capital and profit for the current year has increased for 8 consecutive years. This indicates that PT.
West Kalimantan Regional Development Bank shows maximum performance achievements. However, if the
above indicators are compared with one another, not all of them have a good proportion. This means that the
magnitude of the increase in one indicator is not the same as the increase in other indicators. This can be seen
from several financial ratios that show the development of the performance of PT. West Kalimantan Regional
Development Bank obtained from its financial reports.
One of the bases for measuring the company's financial performance is by looking at the level of
profitability, because business attractiveness can be used with profitability levels such as ROA, ROE and NPM,
therefore the probability level becomes an important indicator in business competition. Van Horn and
Wachowiez, (1997: 148-149), suggest that there are two types of profitability ratios, namely profitability related
to sales (NPM ratio) and profitability related to investment (ROA and ROE).
Table 2. Financial Ratio of PT. West Kalimantan Regional Development Bank (in percent).
Financial Ratio 2010 2011 2012 2013 2014 2015 2016 2017
CAR 17,53 17,74 16,87 17,63 19,21 21,76 20,66 21,59
LDR 84,34 77,51 86,80 87,20 87,09 82,70 86,69 77,59
ROA 4,17 3,45 3,33 3,42 3,19 2,91 2,88 2,94
ROE 39,77 28,93 26,20 25,80 22,14 19,96 18,58 18,03
BOPO 70,23 76,97 71,33 70,12 71,77 73,20 72,80 71,84
NPL-Gross 0,13 0,15 0,17 0,35 0,48 0,56 0,70 1,16
NPL-Net 0,03 0,04 0,04 0,11 0,10 0,12 0,15 0,17
Source: PT. West Kalimantan Regional Development Bank, 2018
Table 2 shows part of the financial ratios that are owned shows the financial performance of PT. West
Kalimantan Regional Development Bank. The tendency of the financial ratios shown in Table 2 shows that from
2010 to 2017 the values of these ratios have decreased. Although the current asset ratio has increased, other
ratios tend to fluctuate and lead to a decline.
Financial ratios are very important for users of financial statements (equity investors and creditors),
especially profitability ratios. Profitability ratio describes the company's ability to generate profits using the
capital that is embedded in it. Profit is a determining factor for changes in the value of securities / securities.
Measuring and forecasting earnings is an important job for equity investors. Meanwhile, creditors consider
operating profit and cash flow to be a source of interest payments.
The process of determining how well business activities are carried out in achieving strategic
objectives, eliminating waste, and presenting information in a sustainable and timely manner is an assessment of
4. Analysis Of Financial Performance Using The Trend Approach
Multidisciplinary Journal www.ajmrd.com Page | 11
profitability. So that for good strategy, what the company can do is one of them by estimating or forecasting the
condition of the company in the future, in this study the profitability ratios used are ROA and ROE at Bank
Kalbar for the future using historical data that has been used. happened in Bank Kalbar from 2010-2017 using
the least square method to predict or forecast future profitability ratios.
Return on Assets (ROA) or the rate of return on assets is the ratio of profitability which shows the
percentage of profit (net income) obtained by the company in relation to overall resources or the average
number of assets. This ratio measures how efficient a company is in managing its assets to generate profits
during a period. So the purpose of company assets is to generate income and of course also generate profits or
profits for the company itself.
The ROA or Return on Assets ratio can help management and investors to see how well a company
is able to convert its investment in assets into profit or profit. This rate of return on assets is considered a return
on investment for a company because in general capital assets are often the largest investment for most
companies. In other words, money or capital is invested into capital assets and the rate of return or returns is
measured in terms of the profit or profit it receives.
Investors view the ROA or Return on Assets ratio as very important information for investors to
make investment decisions. So that from the historical data on the company's ROA, investors can estimate or
predict the ROA of a company in the future.
Table 3. Data Return On Asset (ROA) PT. West Kalimantan Regional Development Bank.
N Year X ROA (Y) X2 XY
1 2010 -7 4,17 49 -29,19
2 2011 -5 3,45 25 -17,25
3 2012 -3 3,33 9 -9,99
4 2013 -1 3,42 1 -3,42
5 2014 1 3,19 1 3,19
6 2015 3 2,91 9 8,73
7 2016 5 2,88 25 14,4
8 2017 7 2,94 49 20,58
Jumlah 26,29 168 -12,95
Source: Processed Data, 2019
Table 3 above provides information to form a trend line equation to predict ROA in 2020 and 2021, which is as
follows:
a = ây / n and b = âxy / âx2
a = 26.29 / 8 b = -12.95 / 168
a = 3.29 b = -0.78
then the trend line equation is
Y = a + bX
Y = 3.29 - 0.78X
The trend line equation shows a negative slot, meaning that the ROA movement at PT. The West
Kalimantan Regional Development Bank tends to experience a decline from year to year. From this equation,
the ROA Financial Ratio in 2020 and 2021 can be predicted as follows:
Y = a + bX
Y = 3.29 - 0.78X
The value of X in 2020 is 13 then,
Y = 3.29 - 0.78 (13)
Y = 3.29 - 0.10
Y = 2.29
The value of X in 2021 is 15 then,
Y = 3.29 - 0.78 (15)
Y = 3.29 - 1.16
Y = 2.13
The trend line equation shows that the ROA of PT. West Kalimantan Regional Development Bank
for 2020 and 2021 amounted to 2.29% and 2.13%, respectively. This indicates PT. The West Kalimantan
Regional Development Bank is less effective in managing its assets to generate higher profits or profits. So that
5. Analysis Of Financial Performance Using The Trend Approach
Multidisciplinary Journal www.ajmrd.com Page | 12
PT. The West Kalimantan Regional Development Bank needs to make a better policy or statejik in asset
management in order to determine maximum future profits.
Figure 1. The movement of the ROA of PT. West Kalimantan Regional Development Bank
Source: PT. West Kalimantan Regional Development Bank, 2018
The movement of the ROA ratio of PT. The West Kalimantan Regional Development Bank shows a
downward movement from year to year. The lowest ROA occurred in 2016 which shows the ability of assets to
earn a profit or profit of only 2.88%, while the ROA figure for 2018-2021 is a predictive figure using the trend
line equation. This downward movement indicates that PT. West Kalimantan Regional Development Bank
needs to continue to improve the management and utilization of assets owned in order to increase profits or
profits that can be obtained by the company.
Figure 2. Predicted ROA of PT. West Kalimantan Regional Development Bank using the 2018-2021
Trend Method
Source: Processed Data, 2019
Apart from ROA, another ratio that is important for users of corporate financial information is the ROE
(Return on Equity Ratio) ratio. ROE is a profitability ratio that measures a company's ability to generate returns
from shareholder investments in the company. In other words, this ROE shows how much profit a company can
generate from every one dollar invested by shareholders. So that this ratio is important for investors, especially
those who invest their funds in a company. Therefore, it is possible to predict the value of the ROE ratio for the
future.
4.17
3.45 3.33 3.42
3.19
2.91 2.88 2.94
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2010 2011 2012 2013 2014 2015 2016 2017
2.59
2.44
2.28
2.13
0.00
0.50
1.00
1.50
2.00
2.50
3.00
2018 2019 2020 2021
6. Analysis Of Financial Performance Using The Trend Approach
Multidisciplinary Journal www.ajmrd.com Page | 13
Table 4. Data Return On Equity (ROE) PT. West Kalimantan Regional Development Bank.
N Year X ROE X2 XY
1 2010 -7 39,77 49 -278,39
2 2011 -5 28,93 25 -144,65
3 2012 -3 26,2 9 -78,6
4 2013 -1 25,8 1 -25,8
5 2014 1 22,14 1 22,14
6 2015 3 19,96 9 59,88
7 2016 5 18,58 25 92,9
8 2017 7 18,03 49 126,21
Jumlah 199,41 168 -226,31
Source: Processed Data, 2019
Table 4 above provides information to form a trend line equation to predict ROE in 2020 and 2021,
which is as follows:
a = ây / n and b = âxy / âx2
a = 199.41 / 8 b = -226.31 / 168
a = 24.93 b = -1.35
then the trend line equation is
Y = a + bX
Y = 24.93 - 1.35X
The trend line equation shows a negative slot, meaning that the ROE movement in PT. The West
Kalimantan Regional Development Bank tends to experience a decline from year to year. From this equation,
the ROE Financial Ratio in 2020 and 2021 can be predicted as follows:
Y = a + bX
Y = 24.93 - 1.35X
The value of X in 2020 is 13 then,
Y = 24.93 - 1.35 (13)
Y = 24.93 - 17.51
Y = 7,414
The value of X in 2021 is 15 then,
Y = 24.93 - 1.35 (15)
Y = 3.29 - 20.21
Y = 4.72
The trend line equation shows that the ROA of PT. West Kalimantan Regional Development Bank
for 2020 and 2021 amounted to 7.414% and 4.72%, respectively. This indicates PT. The West Kalimantan
Regional Development Bank is less efficient in using money from shareholders to generate profits and grow the
company. This ratio is a ratio that is viewed based on the shareholder's point of view. So the shareholders'
expectations of how much money can return to shareholders from the investment that has been made. Because
the owner of the company in PT. The West Kalimantan Regional Development Bank is a district city
government in the province of West Kalimantan, so surely the main goal of the company is how to be the
growth and welfare of the region, namely West Kalimantan. So that ROE can be used to determine the
development and ability of the company to maintain revenue trends that occur at PT. West Kalimantan Regional
Development Bank.
7. Analysis Of Financial Performance Using The Trend Approach
Multidisciplinary Journal www.ajmrd.com Page | 14
Figure 3. The movement of the ROE of PT. West Kalimantan Regional Development Bank
Source: PT. West Kalimantan Regional Development Bank, 2018
The movement of the ROE of PT. The West Kalimantan Regional Development Bank is the same as
the ROA movement, which has decreased. ROE in 2014 was the largest decrease compared to the decline that
occurred in the previous 4 years or 3 years after. This shows that in 2014 from the shareholder's point of view,
PT. The West Kalimantan Regional Development Bank has been less effective in maintaining the trend of
company-owned revenues.
Figure 4. Prediction of ROE of PT. West Kalimantan Regional Development Bank with the 2018-2021
Trend Method
Source: Processed Data, 2019
IV. CONCLUSION
The results of the study concluded that:
1. The performance of PT. The West Kalimantan Regional Development Bank, which is proxied by the ROA
and ROE ratios for the years 2010-2017, tends to decline.
2. Predict or forecast the performance of PT. The West Kalimantan Regional Development Bank in 2018-
2021 shows a decrease in the profitability ratio both in terms of ROA and ROE.
3. Profitability ratios that show a decline indicates the need for increased performance by PT. West
Kalimantan Regional Development Bank to be more effective and efficient in asset management and
utilization of equity held.
Suggestions that can be given from the results of this study are as follows:
1. The level of financial ratios of PT. West Kalimantan Regional Development Bank which tends to show a
downward trend, this indicates the low level of public confidence in investing in PT. West Kalimantan
Regional Development Bank, so a policy or strategy is needed to increase public trust.
2. PT. The West Kalimantan Regional Development Bank must pay more attention to the capital and assets
owned so that it can be more optimal in generating company profits.
39.77
28.93
26.2 25.8
22.14
19.96 18.58 18.03
0
5
10
15
20
25
30
35
40
45
2010 2011 2012 2013 2014 2015 2016 2017
12.80
10.11
7.41
4.72
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
2018 2019 2020 2021
8. Analysis Of Financial Performance Using The Trend Approach
Multidisciplinary Journal www.ajmrd.com Page | 15
3. Further research is recommended to use the overall profitability ratio, not only the ROA and ROE ratios,
so that the measurement of company performance is more comprehensive.
REFERENCES
[1]. Arikunto. (2010). Prosedur Penelitian Suatu Pendekatan Praktik. Jakarta: Rineka Cipta.
[2]. Brigham, Eugene. F. & Joel F. Houston. 2011. Manajemen Keuangan. (Edisi Kedelapan). Jakarta :
Erlangga
[3]. Harahap, Sofyan Syafri (2004), âAnalisis Kritis Atas Laporan Keuanganâ. Jakarta : PT. Raja Grafindo
Persada
[4]. Horne, Van. James C. Dan Wachowicz, M.Jhon. 2005. Prinsip-Prinsip Manajemen keuangan,
Diterjemahkan oleh Aria Farahmita
[5]. Ibrahim, dkk. 2003. Perencanaan Pengajaran. PT. Remaja Rosdakarya: Bandung
[6]. Indrawati, Andi. 2017. Analisis Trend Kinerja Keuangan Bank Kaltim. Research Journal of
Accounting and Business Management (RJABM). Volume 1 No.2 December 2017. Hal 226-235
[7]. Ikatan Akuntan Indonesia (2009), âStandar Akuntansi Keuanganâ. Jakarta : Salemba Empat
[8]. Jumingan (2009), âAnalisis Laporan Keuanganâ. Jakarta : Penerbit Bumi Aksara
[9]. Kasmir (2008), âAnalisis Laporan Keuanganâ. Jakarta : PT. Raja Grafindo Persada
[10]. Munawir, S. (2010). Analisa Laporan Keuangan. Yogyakarta: Penerbit Liberty.
[11]. Maryati. 2010. Strategi Pembelejaran Inkuiri Diakses dari
http://staff.uny.ac.id/sites/default/files/pendidikan/maryatissimsi/7strategi pembelajaran-inkuiripdf.pdf.
[12]. Rialdy, Novien. (2018). Analisis Laporan Keuangan Dengan Metode Trend Sebagai Dasar Menilai
Kondisi Keuangan Di Rumah Sakit Umum Haji Medan. Fakultas Ekonomi dan Bisnis Universitas
Muhammadiyah Sumatera Utara.
[13]. Prastowo, Dwi dan Juliaty, Rifka. 2005. Analisis Laporan Keuangan Konsep dan Aplikasi (Edisi
Kedua). Yogyakarta: UPP STIM YKPN.
[14]. Prihadi, Toto. 2010. Analisis Laporan Keuangan. Teori dan Aplikasi. PPM Manajemen. Jakarta
[15]. Purnomo, Yoyo. 1998. Ketertarikan Kinerja Keuangan dengan Harga Saham, Usahawan, Desember
No.12. Tahun XXVII
[16]. Veno, Andri dan Syamsudin. 2016. Analisis Trend Kinerja Keuangan Perbankan Syariah Tahun 2015
Sampai Dengan 2017. Jurnal Bisnis dan Manajemen Islam. BISNIS, Vol. 4, No. 1, Juni 2016. Hal 21-
34
[17]. William, Marianno. (2017). Analisis Rasio Keuangan Untuk Menilai Kinerja Keuangan Perusahaan
Studi Kasus PT Telekomunikasi Indoensia Tbk. Fakultas Ekonomi Universitas Sanata Dharma
Yogyakarta.