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Indonesia has been pounded by monetary crisis since July 1997 and because of this situation persisted for a long time, it has extensive effects to economic matters. Business sector is the one that was heavily damaged by the soared of inflation and interest rate. A lot of company cannot survive and t...
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Format: | Theses |
Language: | Indonesia |
Online Access: | https://digilib.itb.ac.id/gdl/view/7814 |
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Institution: | Institut Teknologi Bandung |
Language: | Indonesia |
Summary: | Indonesia has been pounded by monetary crisis since July 1997 and because of this situation persisted for a long time, it has extensive effects to economic matters. Business sector is the one that was heavily damaged by the soared of inflation and interest rate. A lot of company cannot survive and they had to shut down their business, whereas not long enough Indonesia will be faced into a global competition. Companies which can survive through this crisis situation need times and a lot of effort to recover back to the first condition. <br />
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Mostly, financial sector is the part of company that was hit by economic crisis very badly. Then, management need to improve and solve their financial problem. Those purposes can be achieved by measuring company's performance especially in financial sector, and then continued by doing analyse and evaluation of company's performance. <br />
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One of the methods to measure company's financial performance is by using financial ratios analysis Radar method. This method is an action of perfecting and completing from classic financial ratios analysis. So, it is hoped that this method can give a better comprehensive evaluation, which can decribes company's prospects in a short-term and a long-term. <br />
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Another method is Economic Value Added (EVA) concept. This concept estimates not just company's ability to make profits but it also calculates the cost of capital. So, this method measures company's ability to create value added and it can be used as an indicator to make a judgement how good finance manager manage company's capital. <br />
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The results of analysing company's financial performance by using financial ratios analysis Radar method and EVA concept can be used by managers to make decisions to improve and increase company's performance, especially in financial sector. Finally based on those results, company's management can make a short-term plan which give more priority to survive in the middle of tight competition and a long-term plan which purposed to increase company's competitive advantage and how to win the competition, so company can make some progress and development in the future. <br />
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