ANALISIS PENARIKAN HUTANG DALAM KAITNNYA DENGAN RENTABILITAS PADA PT. TUNAS BROTHERS DI BANDAR LAMPUNG

2017 ◽  
Vol 7 (1) ◽  
Author(s):  
Gunawan Gunawan
Keyword(s):  
Quantitative Analysis ◽  
Interest Rate ◽  
Beneficial Effect ◽  
Key Words ◽  
Profit Margin ◽  
Rate Of Return ◽  
Return On Equity ◽  
Equity Analysis ◽  
Analysis Tools ◽  
The Interest Rate

<p><em>This study aims to determine how the effects of the use of capital (derived from debt and own capital) is used by companies of the rate of return on equity. Is the policy for the withdrawal of debt has just run in the sense of providing a beneficial effect for the owners of the company. Hypothesis os : if the level of rate of return of the acquired company is greater than the amount the interest rate, then the withdrawal will have a positive debt to rate of return on equity. Analysis is done using quantitative analysis for the purpose of comparingthe theory that become the guidelines applied by the company’s application and the rentability analysis and quantitative analysis tools with ration analysis. Profit margin, operating Turnover assets, rate of return and rate of return on equity. From the results of research conducted was even its own capital rentability of the company acquired during the year under study shows a growing trend (5.35%, 6.78%, 11.68%, 8.66%) but the actual level of rtaae of return of own capital it can be achieved even greater (ie could reach 7.01%, 9.78%, 12.43%, 11.44%) if only the company during the year no interest loan.  </em></p><p>Key Words- <em>Debt, equity, rate of return.</em></p><p> </p>

Positive Interest Rate, Stationary Economy, and Inefficiency

2020 ◽  
pp. 1-17
Author(s):  
Amir Kia
Keyword(s):  
Interest Rate ◽  
Transition Period ◽  
Pareto Efficiency ◽  
Rate Of Return ◽  
Price Ratio ◽  
Marginal Rate ◽  
Positive Rate ◽  
Short Run ◽  
Pareto Efficient ◽  
The Interest Rate

This chapter analyses the direct impact of a positive rate of interest (usury) on the production possibility curve. Usury under a stationary state creates inefficiency in the sense that the marginal rate of transformation is not equal to the price ratio. Over the short run Pareto efficiency appears when a transition period is considered and the rate of return moving from one state to another is endogenous and equals the rate of investment. In a non-stationary economy, when a positive rate of return (interest) is equal to the growth rate of the economy, there will be a Pareto-efficient equilibrium. But if the interest rate is exogenous to the system, usury exists, and then Pareto efficiency cannot be achieved under any state, either stationary or non-stationary.

Examining the financial performance of agricultural cooperatives in the USA

2019 ◽  
Vol 79 (2) ◽  
pp. 271-282 ◽  
Author(s):  
Krishna Prasad Pokharel ◽  
Madhav Regmi ◽  
Allen M. Featherstone ◽  
David W. Archer
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Financial Stress ◽  
Rate Of Return ◽  
Agricultural Cooperatives ◽  
Return On Assets ◽  
Real Rate ◽  
Content Type ◽  
Return On Equity ◽  
The Real

Purpose The purpose of this paper is to identify financial stress and the causes of financial stress for agricultural cooperatives and provide management recommendations to stakeholders including cooperatives’ managers, boards of directors and lenders. Design/methodology/approach This research used the geometric mean of the real rate of return on equity to identify financially stressed agricultural cooperatives. The real rate of return on equity allows the allocation of total financial stress among the return on assets, leverage and interest rate issues. Findings This study found that financially non-stressed agricultural cooperatives had a higher rate of return on equity and rate of return on assets, but lower leverage ratios and interest rates than stressed agricultural cooperatives. Further, non-stressed cooperatives had higher total assets and sales compared to stressed cooperatives. This suggests that smaller cooperatives are more likely to face financial stress than larger cooperatives. The decomposition of the financial problem showed that a substantial percentage of financial stress was correlated with a low return on assets or profitability. A smaller percentage of financial stress was due to financing decisions. Originality/value This study provides value by measuring the impact of profitability, leverage and interest rate on the financial performance of agricultural cooperatives. Results showed that a substantial proportion of financial stress was associated with a low return on assets. This indicates that profitability is a problem for agricultural cooperatives. This study also examines profitability during a period of volatile returns in production agriculture.

Optimal capital structure in agricultural cooperatives and implications for equity retirement

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jeffrey Royer ◽  
Gregory McKee
Keyword(s):  
Interest Rate ◽  
Capital Structure ◽  
Financial Statements ◽  
Rate Of Return ◽  
Content Type ◽  
Optimal Capital Structure ◽  
Return On Capital ◽  
Optimal Capital ◽  
The Interest Rate ◽  
The Relationship

PurposeThis paper presents a model for determining the optimal capital structure for cooperatives and explores the relationship between financial leverage and the ability of cooperatives to retire member equity.Design/methodology/approachA model is developed to determine the optimal capital structure and explore the relationship between capital structure and the rate at which a cooperative can retire member equity. Using data from cooperative financial statements, ordinary least-squares regressions are conducted to test two hypotheses on capital structure and equity retirement.FindingsThe model shows that the optimal capital structure is determined by the ratio of the rate of return on capital employed to the interest rate on borrowed capital and the required level of interest coverage. The regressions suggest that cooperatives choose their capital structure largely according to the rate of return on capital employed and the interest rate in a manner consistent with maximizing the rate of return on equity and that the rate at which cooperatives can retire member equity is directly related to leverage.Research limitations/implicationsThe model does not consider unallocated earnings. Analysis of the relationship between leverage and equity retirement yields results contrary to the assumptions of earlier studies.Practical implicationsCooperatives can use the model because the necessary parameters are easily understood and readily available from financial statements, lenders and industry sources.Originality/valueThe model is developed specifically for determining the capital structure of cooperatives and differs substantially from the corporate model. A theoretical basis is provided for the relationship between leverage and equity retirement.

scholarly journals General theory of geometric Lévy models for dynamic asset pricing

2012 ◽  
Vol 468 (2142) ◽  
pp. 1778-1798 ◽  
Author(s):  
Dorje C. Brody ◽  
Lane P. Hughston ◽  
Ewan Mackie
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Risk Aversion ◽  
Foreign Exchange ◽  
Market Price ◽  
Nonlinear Function ◽  
Rate Of Return ◽  
Pricing Kernel ◽  
Kernel Approach ◽  
The Interest Rate

The geometric Lévy model (GLM) is a natural generalization of the geometric Brownian motion (GBM) model used in the derivation of the Black–Scholes formula. The theory of such models simplifies considerably if one takes a pricing kernel approach. In one dimension, once the underlying Lévy process has been specified, the GLM has four parameters: the initial price, the interest rate, the volatility and the risk aversion. The pricing kernel is the product of a discount factor and a risk aversion martingale. For GBM, the risk aversion parameter is the market price of risk. For a GLM, this interpretation is not valid: the excess rate of return is a nonlinear function of the volatility and the risk aversion. It is shown that for positive volatility and risk aversion, the excess rate of return above the interest rate is positive, and is increasing with respect to these variables. In the case of foreign exchange, Siegel's paradox implies that one can construct foreign exchange models for which the excess rate of return is positive for both the exchange rate and the inverse exchange rate. This condition is shown to hold for any geometric Lévy model for foreign exchange in which volatility exceeds risk aversion.

scholarly journals Analisis Profitabilitas Untuk Mengukur Kinerja Keuangan Manajemen Hotel (Studi Kasus pada UNY-Hotel Yogyakarta).

2011 ◽  
Vol 9 (2) ◽  
Author(s):  
Ismani Ismani ◽  
Ngadirin Setiawan ◽  
Andian Ari Istiningrum
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Profit Margin ◽  
Net Profit ◽  
Evaluative Research ◽  
The Interest Rate ◽  
Profitability Ratios

The purpose of this research is to measure financial performance of UNY-Hotelmanagement by using profitability ratios, such as Net Profit Margin (NPM) and Return ofTotal Assets (ROA). The research is an evaluative research that is done by analyzingfinancial statement of UNY-Hotel and interviewing management in order to get more deeplyinformation. The result of this research shows that financial performance of UNY-Hotel islow due to NPM at 26.89 % that is lower than the target at 40% and ROA at 6.41% that islower than the interest rate (10% – 12% per annum). This result indicates that there isinefficiency in managing assets and expenses.Kata Kunci: kinerja keuangan, profitabilitas, net profit margin, return on asset, tingkatperputaran aset

scholarly journals Analysis capital budgeting investment projects substation 150 kV for tires company

2020 ◽  
Vol 12 (2) ◽  
pp. 189
Author(s):  
Andi Setyawan ◽  
Hasbullah Hasbullah
Keyword(s):  
Interest Rate ◽  
Net Present Value ◽  
Electricity Consumption ◽  
Electrical Energy ◽  
Capital Budgeting ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Investment Projects ◽  
The Interest Rate

The electricity consumption continues to increase, including in Indonesia, where the average electricity consumption rises 6.86% per year. In line with the ever-increasing production needs of companies needing more electrical energy during these electrical disturbances often occur due to power shortage. Therefore, the company proposes the investment of the construction of substations 150kv Expected to improve the reliability of electrical energy supply. This research conducted to analyze the value of investment carried by tire companies using historical data and company forecasts using the technical method of economics to analyze its finances. Based on the calculation result with the Payback period (PP) and Discounted Payback Period generates 5.35 years and 6.24 years.  Meanwhile, in the calculation of net present value (NPV) obtained favorable results in the 6th year of Rp 40,944,770,640.32, using an interest rate of 5%. In the calculation of the internal rate of return (IRR), the result of 5.5% concluded that the project return is higher than the minimum attractive rate of return (MARR) of the company by 5.17% of the Bank Indonesia interest rate. Then based on the sensitivity analysis gained that the lower the interest rate on this project, then the faster the return on the investment, and vice versa. The overall analysis of the scenario stated that the investment is worthy of running because it brings profit directly to the company.

scholarly journals REAKSI PASAR ATAS VARIABEL MAKRO DAN PROFITABILITAS: KAJIAN PERUSAHAAN DI BURSA EFEK INDONESIA TERKATEGORI DEVENSIFE DAN CYCLICAL INDUSTRY

2018 ◽  
Vol 15 (2) ◽  
pp. 269-287
Author(s):  
Nur Fadjrih Asyik
Keyword(s):  
Interest Rates ◽  
Stock Returns ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Profit Margin ◽  
P Value ◽  
Return On Equity ◽  
Beverage Industry ◽  
The Interest Rate ◽  
Macro Variables

This study examines the influence of macro variables and profitability to the market reaction to the companies listed in Indonesia Stock Exchange categorized as a defensive industry and cyclical industry. Independent variables in this study are macro variables which consists of inflation (I) and the interest rate (SB) and profitability ratios which consists of return on assets (ROA), return on equity (ROE), gross profit margin (GPM), net profit margin (NPM), as well as the dependent variable is stock returns (RS). Data obtained from ICMD (Indonesian Capital Market Directory), Indonesian Stock Exchange, JSX Monthly, and www.bi.go.id. Objects used in this study were food-beverage industry as a defensive industry and the automotive industry as a cyclical industry in 2007 through 2009. The results showed that the F value is 4.032 with probability value of 0.001, thus statistically significant at 1%. It can be concluded that the macro variables, profitability, and the type of industry (defensive industry and cyclical industry) together have a significant effect on stock returns of manufacturing firms listed on the Indonesia Stock Exchange. Partial coefficient of inflation, interest rates, ROE, GPM, NPM, and the type of industry are 2.695, -4.085, -0.711, -0.616, 0.391, and 0.301 with  p-value of 0.002, 0.006, 0.000, 0.033, 0.014, and 0.044 thus statistically significant at the 1% and 5%, thus concluded that the inflation, interest rates, ROE, GPM, NPM, and the types of industries have a significant effect on stock returns of manufacturing firms. Only the ROA variables that do not support the hypothesis.

Murabaha and Musharakah Moutanaquissah pricing: an interest-free approach

2020 ◽  
Vol 11 (1) ◽  
pp. 201-215 ◽  
Author(s):  
Rida Ahroum ◽  
Othmane Touri ◽  
Boujemâa Achchab
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Islamic Law ◽  
Profit Margin ◽  
Real Economy ◽  
Content Type ◽  
The Real ◽  
Reputational Risk ◽  
Valuation Methodology ◽  
The Interest Rate

Purpose This study aims to provide an interest-free valuation methodology for Murabaha and Musharakah Moutanaquissah contracts. Indeed, In Islamic finance, Murabaha contracts are widely negotiated. Their yield depends mainly on the contracted profit margin. In the current practices, this latter is based on a reference interest rate, which is highly criticized in Islamic literature, just like Musharakah Moutanaquissah contracts. In this perspective, authors suggest a new valuation methodology with parameters related to the real economy. Design/methodology/approach The authors apply an indirect method to determine a lower bound of the profit margin of a Murabaha contract. Considering Musharakah Moutanaquissah as an equivalent contract, the new valuation methodology is based on participation and focuses on parameters from the real economy: the market rent and the rate of return used for an equivalent project. Findings The results show that the pricing of Musharakah Moutanaquissah contracts could be based on several parameters linked to the real economy. Consequently, an implied value of the profit margin could be computed. Also, the interest rate is no longer implicated in the pricing of neither Murabaha nor Musharakah Moutanaquissah contracts. Research limitations/implications The valuation methodology is applicable only if the underlying asset’s financing can be made with Murabaha and Musharakah Moutanaquissah contracts. Practical implications This work will restore the link between Islamic contracts and the real economy. For Islamic banks in particular, the suggested model would reduce the exposure to reputational risk and enhance the compliance to the Sharia (Islamic Law). Originality/value Several studies have analyzed the dependence between Islamic contracts and interest rates. In general, these studies confirm this dependence and few of them have suggested alternatives. Thus, the authors contribute to the literature by providing a practical and applicable model to detach the valuation of Murabaha and Musharakah Moutanaquissah from the interest rate.

scholarly journals Should the Interest Rate Really Be the Unique Motive to Save in the Ramsey Model?

2016 ◽  
Vol 8 (12) ◽  
pp. 224
Author(s):  
Atef Khelifi
Keyword(s):  
Interest Rate ◽  
Utility Function ◽  
Time Preference ◽  
Rate Of Return ◽  
Optimal Decision ◽  
Static Properties ◽  
Ramsey Model ◽  
The Interest Rate ◽  
The Individual ◽  
Capitalist Spirit

<p>By assuming that the individual derives utility from consumption only, the resulting optimal decision to save in the Ramsey model depends on the rate of return, given a certain time preference. If therefore the production function is such that this rate of return remains relatively low, the individual reacts unconsciously by refusing to save despite the capital depreciates and the household grows. We argue that it is conceptually necessary in that framework to assume a direct preference for saving (or for thriftiness) in the utility function, not only to make the individual behave as a real human being who cares about the survival of the household, but also to account reasonably for any other motives to save or accumulate than the rate of return. We show it generalizes the model in a way to recover static properties of the exogenous Solow version and to extend results of capitalist spirit models following Zou (1994).</p>

Sign in / Sign up

Export Citation Format

Share Document