Pengaruh Financial Leverage terhadap Financial Performance pada Sektor Industri Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI) Periode 2015

2018 ◽  
Vol 9 (2) ◽  
pp. 33-48
Author(s):  
Rivaldy Februansyah ◽  
Ika Yanuarti
Keyword(s):  
Financial Performance ◽  
Manufacturing Sector ◽  
Linear Regression Analysis ◽  
The Other ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Coverage Ratio ◽  
Equity Ratio ◽  
Internal Fund

The manufacturing sector is one of the most dominant economic sectors in in achieving growth and development in Indonesia. It needs adequate fund to develop its business. The sources of fund are from internal and external. The firm usually optimized the usage of internal fund prior to external fund. The internal fund comes from equity while the external funds are from debt and stock. Debt is also known as financial leverage. There is a phenomenon that the usage of debt increased the firm’s financial performance, since interest on debt could lower the payment of tax (tax shield). On the other side, the higher the financial leverage the higher the risk of bankruptcy. This research aims to analyze whether financial leverage has an influence on financial performance in the manufacturing sector listed on the Indonesia Stock Exchange (IDX) period 2015. The method of analysis used in this research is multiple linear regression analysis. This research uses quantitative approach with a sample of 140 listed companies in the manufacturing industry. The firm’s financial performance could be measured by the financial ratios. Financial Leverage ratios are ratios that measure the ability of firm’s to meet its financial obligation and the level of usage debt as compared to equity. There are several financial leverage ratios that used in this research, such as Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), and Long Term Debt Ratio (LTDR). Financial performance indicates the ability of firm to generate profit and measured by Profitability Ratio. Return on Asset (ROA) is one of the Profitability Ratio. The statistical result shows that Debt Ratio (DR) negatively affect Return on Asset (ROA) and Interest Coverage Ratio (ICR) positively affect Return on Asset (ROA). Meanwhile, Debt to Equity Ratio (DER) and Long Term Debt Ratio (LTDR) did not affect Return on Asset (ROA). On the other hand, result shows that Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), and Long Term Debt Ratio (LTDR) affect Return on Asset (ROA) simultaneously. Keywords: Financial Leverage, Debt Ratio (DR), Debt to Equity Ratio (DER), Interest Coverage Ratio (ICR), Long Term Debt Ratio (LTDR), Financial Performance, Return on Assets (ROA)

scholarly journals Financial Leverage and Performance of the Energy and Petroleum Sector Companies Listed in the Nairobi Securities Exchange

2021 ◽  
Vol 3 (2) ◽  
pp. 113-128
Author(s):  
Jephania Chemosit ◽  
Gerald Atheru
Keyword(s):  
Financial Performance ◽  
Negative Relationship ◽  
Empirical Literature ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Coverage Ratio ◽  
Equity Ratio ◽  
Cover Ratio ◽  
Petroleum Sector ◽  
Interest Expense

Financial leverage and financial performance are fundamental issues in corporate finance. In Kenya, some companies listed at the Nairobi Securities Exchange have had performance improvement. However, most of them have experienced declining fortunes which has been attributed to the fact that corporate managers another practitioner lack adequate guidance required to attain optimal financing decisions. Financial leverage comprises of loans and other forms of debts where the proceeds from these loans are reinvested to earn higher return than the cost of loans. Financial use is the company's capacity to utilization of settled money related charges to amplify the impacts of changes in the profit before premium and duty on the company's income per share. The extent of obligation to value is a vital decision for corporate supervisors. The poor performance of Energy and Petroleum sector companies is of great concern. Financial leverage ranges from debt ratio, debt/equity ratio and interest coverage ratio which are vital since they directly affect the financial performance of firms. The general objective as to determine the effect of financial leverage on the financial performance of energy and petroleum sector companies listed in the NSE. While the specific objectives were; to establish the effect of debt ratio, debt -equity ratio and interest coverage ratio on financial performance of energy and petroleum sector companies recorded in the NSE. The research was anchored on the following theories: Modigliani-Miller theorem, Pecking Order Theory and Trade-off Theory. The empirical literature review was based on the three objectives of the study and gaps established. The study adopted a descriptive research design. Management of all the 5 energy and petroleum companies listed with the NSE was involved in the study which mainly used secondary data to conclude. Data was analyzed using regression analysis. Analyzed data was presented using tables. Confidence interval of 95% was used by the researcher. The study adopted a multiple regression model (Y = β0 + β1X1 + β2X2 + β3X3 +ε). The findings indicate that the independent variables Debt ratio, Debt to Equity ratio and interest cover ratio affected the financial performance of the firms in the Energy and petroleum sector. Their effect was up to 75.4%. Debt ratio and Debt to Equity ratio had a positive relationship whereas Interest cover ratio had a negative relationship to the firms in the Energy and petroleum sector listed in the NSE. This study recommends that the firms handle their capital structure decisions prudently as the changes in the factors like Debt ratio, Debt to Equity ratio and Interest cover ratio enhance profitability of firms when prudently employed and hence affect the performance of Energy and petroleum firms listed at the Nairobi Securities Exchange. This study also recommends that firms control the amount of interest expense since an increase in interest expense has an effect in that it reduces the financial performance of firms in the Energy and petroleum sector listed in the NSE.

scholarly journals Relating Financial Leverage to Corporate Performance: A Case of Cement Manufacturing Firms in Nigeria

2019 ◽  
pp. 1-14
Author(s):  
Makwe Stella Ivo ◽  
Mike Anyanwaokoro
Keyword(s):  
Corporate Performance ◽  
Manufacturing Firms ◽  
Least Square ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Return On Assets ◽  
Coverage Ratio ◽  
Insignificant Effect ◽  
Equity Ratio ◽  
Cement Manufacturing

The study evaluated the effect of leverage financing on performance of quoted cement manufacturing firms in Nigeria for the period 2006-2017. There are four (4) cement manufacturing firms in Nigeria studied out of eight (8) manufacturing cement firms. Purposive sampling technique were used in selecting the four (4) cement manufacturing firms in Nigeria out of the eight (8) cement manufacturing firms quoted in the Nigerian Stock Exchange (NSE). The main objective of the study is to investigate the effect of financial leverage on corporate performance of cement firms in Nigeria. The analytical tool adopted was ordinary least square (OLS) simple and multiple regressions. Findings of the study showed that Debt Ratio and Debt to Equity Ratio has negative insignificant effect on Return on Assets (ROA) of quoted cement manufacturing firms in Nigeria. On the other hand Interest Coverage Ratio (ICR) has positive and insignificant effect on return on assets of quoted cement firms in Nigeria. This implies that increase in Debt Ratio and Debt to Equity Ratio decreases ROA, while increase in ICR increases ROA of cement manufacturing firms in Nigeria. The study therefore recommended that the corporate managers in Nigeria should be encouraged to use more long term debt in their financing than relying more on short term credits, since increase in ICR increases ROA of cement manufacturing firms in Nigeria.

scholarly journals Pengaruh Financial Leverage Terhadap Kinerja Keuangan (Studi Pada Perusahaan Properti dan Real Estate yang Terdaftar di Bursa Efek Indonesia Periode 2011-2015)

2018 ◽  
Vol 3 (3) ◽  
pp. 45
Author(s):  
Hana Nopitasari ◽  
Ermina Tiorida ◽  
Ira Siti Sarah
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Secondary Data ◽  
P Value ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Return On Equity ◽  
Equity Ratio

The main objective of this study is to determine the effect of financial leverage on financial performance of the 39 selected property and real estate companies listed in Indonesia Stock Exchange over a period of five years (2011-2015). This work employed two financial leverage for the independent variables such as: debt ratio (DR) and debt to equity ratio (DER) in determining their effect on financial performance such as return on equity (ROE), sales growth and price earning ratio (PER) as a dependent variable. The secondary data were obtained from the financial statement (comprehensive income statement and statement of financial position) of the selected companies quoted from the Indonesia Stock Exchange (IDX). Descriptive statistical test, simple linear regression test and hypothesis test are used to analyze the data of this research. The results of the analysis show that there is a positive and insignificant influence between financial leverage on the financial performance of 39 companies, proven by hypothesis testing of t-value (1.610) < t-table (1.65481) and P-value of 0.109, while the value of regression coefficient of financial performance of 0.008 Tujuan utama penelitian ini adalah untuk mengetahui pengaruh financial leverage terhadap kinerja keuangan 39 perusahaan properti dan real estate terpilih yang terdaftar di Bursa Efek Indonesia selama lima tahun (2011-2015). Penelitian ini menggunakan dua leverage keuangan untuk variabel independen seperti debt ratio (DR) dan debt to equity ratio dalam menentukan pengaruhnya terhadap kinerja keuangan seperti return on equity (ROE), pertumbuhan penjualan dan price earning ratio (PER) sebagai variabel dependen. Data sekunder diperoleh dari laporan keuangan (laporan laba rugi komprehensif dan laporan posisi keuangan) dari perusahaan terpilih yang dikutip dari Bursa Efek Indonesia (BEI). Uji statistik deskriptif, uji regresi linier sederhana dan uji hipotesis digunakan untuk menganalisis data penelitian ini. Hasil analisis menunjukkan bahwa terdapat pengaruh positif dan signifikan antara financial leverage terhadap kinerja keuangan dari 39 perusahaan. Hal ini dibuktikan dengan pengujian hipotesis yang menghasilkan nilai t hitung (1.610) < t-table (1.65481) dan P-value sebesar 0.109, dengan nilai koefisien regresi kinerja keuangan sebesar 0,008.

Factors That Influence Financial Performance

2019 ◽  
Vol 118 (5) ◽  
pp. 1-8
Author(s):  
Nursito ◽  
Yulianto Hadi ◽  
Dewi Puspaningtyas Faeni
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Debt Ratio ◽  
Working Capital ◽  
Current Ratio ◽  
Feed Industry ◽  
Livestock Feed ◽  
Net Profit ◽  
Asset Turnover ◽  
Equity Ratio

This study aims to test empirically the factors that affect financial performance: current ratio, debt ratio, debt to equity ratio, total asset turnover, working capital turnover and net profit margin on return on investment in subsector of livestock feed industry listed in Indonesia Stock Exchange during the period 2006-2015.

scholarly journals Rasio Solvabilitas

2021 ◽  
Author(s):  
Novira Putri Arlianti
Keyword(s):  
Fixed Charge ◽  
Debt Ratio ◽  
Leverage Ratio ◽  
Equity Ratio

Rasio solvabilitas atau leverage ratio merupakan rasio yang digunakan untuk mengukur sejauh mana aktiva perusahaan dibiayai dengan utang. Dalam arti luas dikatakan bahwa rasio solvabiliteitunakan untuk mengukur kemampuan perusahaan untuk membayar seluruh kewajibannya, baik jangka pendek maupun jangka panjang apabila perusahaan dibubarkan. Jenis-jenis rasio solvabilitas : debt to asset ratio (debt ratio), debt to equity ratio, long term debt to equity ratio, times interest earned dan fixed charge coverage. Debt to asset ratio (debt ratio) merupakan rasio yang digunakan untuk mengukur perbandingan antara total utang dengan total aktiva.

scholarly journals The Effect of Financial Leverage on The Islamic Banks’s Performance in The Gulf Cooperation Council (GCC) Countries

2019 ◽  
Vol 11 (1) ◽  
pp. 13
Author(s):  
Abdesslam Menacer ◽  
Abdulazeez Y. H. Saif-Alyousfi ◽  
Nor Hayati Ahmad
Keyword(s):  
Agency Cost ◽  
The Other ◽  
Islamic Banks ◽  
Financial Leverage ◽  
Gcc Countries ◽  
Thomson Reuters ◽  
Effect Regression ◽  
Equity Ratio ◽  
Earning Power ◽  
The Impact

This study examines the impact of the financial leverage on the Islamic banks’ performance in the GCC countries during the period from 2005-2017. The population of this study included the Islamic banks in the GCC countries. Thirteen years data of 25 listed Islamic banks in the GCC countries were used, wereby these data were retrieved from the Thomson Reuters DataStream. This study utilized the fixed effect regression model. The findings show that the financial leverage a has significant impact on the performance of the Islamic banks’ performance in the GCC region. More specifically, the financial leverage has a positive and significant impact on ROA, ROE, and Tobin’s Q of the Islamic banks in the GCC countries, thus indicating that the higher is the financial leverage the higher is the performance of the Islamic banks in the GCC region. However, the results of this study do not provide evidence to support the Agency Cost Theory that implies a decrease in the performance when equity ratio is increased. On the other hand, the findings provide evidence to support the Signaling Theory that argues that banks are expected to have a better performance credibly in transmitting this information through the higher capital. The findings imply that the level of financial leverage committed by the Islamic banks depends on their flexibility in adjusting their debt value and earning power.

scholarly journals Evaluation of the Financial Performance of Tourism Companies Traded in BIST via a Hybrid MCDM Model

1970 ◽  
Vol 2 (4) ◽  
pp. 20-32
Author(s):  
Ahmet Aytekin
Keyword(s):  
Financial Performance ◽  
Added Value ◽  
Financial Ratios ◽  
Publicly Traded ◽  
Return On Equity ◽  
Coverage Ratio ◽  
Thomson Reuters ◽  
Asset Turnover ◽  
Inventory Turnover ◽  
Equity Ratio

Tourism, the smokeless industry, has increasing importance in the development of countries because it creates added-value and employment. In Turkey, one of the World's most visited countries, the importance of this sector makes itself felt in economic crisis periods. On the other hand, in terms of investors, tourism companies always have the potential to be included in their portfolios. In this context, the aim of this study evaluates the financial performances of tourism companies publicly traded in BIST. For this purpose, the data of 2014-2018 were obtained from the Thomson Reuters Datastream database. The current ratio, quick ratio, cash ratio, debt ratio, total debt/equity ratio, net margin, return on equity, interest coverage ratio, total asset turnover, inventory turnover, and receivable turnover were used as financial ratios. The CRITIC method, one of the objective weighting methods, was applied to determine the importance level of financial ratios. A hybrid model consisting of MAUT, PROMETHEE and TOPSIS was used for evaluation of the companies. These techniques are based on different perspectives and algorithms. In this model, Borda was applied for aggregation of each techniques' ranking values. Thus, the financial performance of the tourism companies for the years 2014-2018 was evaluated more effectively. In conclusion, the company with the best financial performance is Marmaris Altınyunus (MAALT) in this period.

scholarly journals Leverage and Corporate Financial Distress in Nigeria: A Panel Data Analysis

2019 ◽  
Vol 3 (2) ◽  
pp. 26-38 ◽  
Author(s):  
Lucky Anyike Lucky ◽  
Agilebu Ogechi Michael
Keyword(s):  
Financial Distress ◽  
Manufacturing Firms ◽  
Equity Capital ◽  
Fixed Effect ◽  
Z Score ◽  
Financial Leverage ◽  
Total Debt ◽  
Equity Ratio ◽  
Positive Effect

This study examined the effect leverage on corporate financial distress of quoted manufacturing firms in Nigeria. The objective is to examine if financial leverage have any effect on financial distress of the Nigeria firms. Cross sectional data was sourced from financial statement of ten quoted manufacturing firms. Z-Score and Changes in operating profits was proxy for corporate financial distress while debt equity ratio, short, long term debt and total debt to total assets were proxy for leverage. After cross examination of the validity of the pooled effect, fixed effect and the random effect, the study accepts the fixed effect model.  Findings reveal that financial leverage have positive effect on financial distress measured by the z-score while total debt ratio and debt equity ratio have positive effect on financial distress measured by changes on operating profits while  short term debt and long term debt have negative effect on operating profits. From the regression summary, the study concludes that leverage have significant effect on corporate financial distress. We recommend that Financial structure of the manufacturing firms ought to be adequately planned to safeguard the interest of the equity holders, shareholders and financial requirements of the firm and the firms should formulate policies of increasing its equity capital as oppose to debt and that Implementable investment policies should be formulated and the business environment should be well examined. Recognizing faults of investment might be paramount to develop the business’s financial performance, since it specifies the loopholes which corrective decision can be applied.

scholarly journals THE EFFECT OF FINANCIAL LEVERAGE TO THE PROFITABILITY AT SUB- SECTORS OF FOOD AND BEVERAGE COMPANIES LISTED ON INDONESIA STOCK EXCHANGE IN 2010-2014

AdBispreneur ◽  
2016 ◽  
Vol 1 (2) ◽  
Author(s):  
R. Ratna Meisa Dai ◽  
Marsa Khalida Nurahmi
Keyword(s):  
Stock Exchange ◽  
Debt Ratio ◽  
Financial Leverage ◽  
Return On Equity ◽  
Food And Beverage ◽  
Equity Ratio

ABSTRACT  This study examined the effect of financial leverage to the profitability at Sub-Sectors of Food and Beverage Companies listed on Indonesia Stock Exchange in 2010 – 2014 simultaneously and partially. Financial leverage seen from debt ratio and debt to equity ratio, then profitabilitas seen from return on equity.The result of the study revealed debt ratio and debt to equity ratio affected the profitability when it simultaneous. However, when it partial debt ratio did not affect the profitability positively, while debt to equity ratio affected the profitability positively. Keywords : financial leverage, debt ratio, debt to equity ratio, profitability, return on equity.   PENGARUH FINANCIAL LEVERAGE TERHADAP PROFITABILITAS PADA PERUSAHAAN SUB SEKTOR MAKANAN DAN MINUMAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2010-2014 ABSTRAK  Penelitian ini bertujuan untuk mengetahui pengaruh financial levarage terhadap profitabilitas pada perusahaan sub sektor makanan dan minuman yang terdaftar di Bursa Efek Indonesia periode 2010-2014 baik secara simultan maupun secara parsial. Financial leverage dapat dilihat melalui debt ratiodan debt to equity ratio, sedangkan profitabilitas dapat dilihat melalui return on equity.Hasil penelitian menunjukkan bahwa secara simultan kedua variabel independen, yaitu debt ratio dan debt to equity ratio secara bersama-sama berpengaruh terhadap profitabilitas. Untuk pengaruh secara parsial, hasil penelitian menunjukkan bahwa debt ratio tidak berpengaruh positif terhadap profitabilitas, sedangkan debt to equity ratio berpengaruh positif terhadap profitabilitas. Kata kunci : financial leverage, debt ratio, debt to equity ratio, profitabilitas, return on equity.

scholarly journals Analisis Kinerja Keuangan PT. Industri Jamu dan Farmasi Sido Muncul Tbk

2021 ◽  
Vol 1 (1) ◽  
pp. 37-50
Author(s):  
Tiara Widya Antiksari
Keyword(s):  
Financial Performance ◽  
Activity Ratio ◽  
Good Condition ◽  
Ratio Analysis ◽  
Debt Ratio ◽  
Current Ratio ◽  
Financial Ratio ◽  
Financial Ratio Analysis ◽  
Asset Turnover ◽  
Equity Ratio

Corona virus has an impact on all sectors of the company, so companies must have effecient financial performance to be considered as a healty company. This study aims to analyze the financial performance of PT. Industri Jamu dan Farmasi Sido Muncul Tbk in year of 2016 to 2020 by using financial ratio analysis. This study uses the financial statement data 2020 and four financial ratio to make it more complete than previous studies. The research method which has been used to measure the financial performance at PT. Industri Jamu dan Farmasi Sido Muncul Tbk the financial ratio analysis which consists of liquidity ratio, solvability ratio, activity ratio and profitability ratio. The result of this research is based on the liquidity ratio which is proxy by current ratio and cash ratio, it has been found that the condition of the financial performance of the company is liquid. Solvability ratio which is proxy by debt ratio and debt to total equity ratio, it has been found that the condition of the financial performance of the company is good. Activity ratio which is proxy by fixed assets turnover and total assets turnover, it has been found that the condition of financial performance of the company is less efficient. The profitability ratio which is proxy by return on assets is good and return on invesment is less good. The ratio that indicates a good condition is liquidity ratio and solvability ratio.Virus corona berdampak pada semua sektor perusahaan, sehingga perusahaan harus memiliki kinerja keuangan yang efisien agar dapat dinilai sebagai perusahaan yang sehat. Penelitian ini bertujuan untuk menganalisis kinerja keuangan PT. Industri Jamu dan Farmasi Sido Muncul Tbk pada tahun 2016 hingga 2020 menggunakan analisis rasio keuangan. Penelitian ini menggunakan data laporan keuangan tahun 2020 dan dianalisis menggunakan empat rasio keuangan agar penelitian ini lebih lengkap dari penelitian sebelumnya. Metode penelitian yang digunakan untuk mengukur kinerja keuangan pada PT. Industri Jamu dan Farmasi Sido Muncul Tbk merupakan analisis rasio keuangan yang terdiri dari rasio likuiditas, rasio solvabilitas, rasio aktivitas dan rasio profitabilitas. Hasil penelitian ini berdasarkan rasio likuiditas yang diproksikan dengan current ratio dan cash ratio diketahui kondisi kinerja keuangan perusahaan dalam keadaan likuid. Rasio solvabilitas yang diproksikan dengan debt ratio dan debt to total equity ratio diketahui bahwa kondisi kinerja keuangan perusahaan dalam keadaan baik. Rasio aktivitas yang diproksikan dengan fixed asset turnover dan total asset turnover, bahwa kondisi kinerja keuangan perusahaan kurang efisien. Rasio profitabilitas yang diproksikan dengan return on asset baik dan return on invesment kurang baik. Rasio yang menunjukan indikasi yang bagus adalah rasio likuiditas dan rasio solvabilitas.

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