14175_Nurhayati_2020_E_R (1)

See discussions, stats, and author profiles for this publication at: https://www.researchgate.
net/publication/353632580
Financial Performance Analysis: Evidence of Retail Trade Companies in

Indonesia
Article · August 2021
CITATIONS READS
4 1,083
3 authors, including:
Immas Nurhayati Endri Endri

Universitas Ibn Khaldun Bogor Universitas Mercu Buana
57 PUBLICATIONS 187 CITATIONS 219 PUBLICATIONS 2,233 CITATIONS
SEE PROFILE SEE PROFILE
All content following this page was uploaded by Endri Endri on 01 August 2021.
The user has requested enhancement of the downloaded file.

International Journal of Innovation, Creativity and Change. www.ijicc.net
Volume 14, Issue 1, 2020
Financial Performance Analysis:

Evidence of Retail Trade Companies
in Indonesia
Immas Nurhayatia, Endri Endrib, Isak H. Siswantoc, aFaculty of Economic,
Universitas Ibn Khaldun, Bogor, Jawa Barat, Indonesian, b,cUniversitas Mercu
Buana, Jakarta, Indonesia, Email: aimmasnurhayati1@gmail.com,
b
endri@mercubuana.ac.id
The research intends to evaluate the financial performance of retail trade

companies that have been listed on the Indonesia Stock Exchange
through financial reports that have been published in the period 2014 to
2018. The research method used is to compare the financial ratios of
companies with similar companies or industries and analyse the
development trends of each company over the past five years.
Performance analysis used financial ratios consisting of: liquidity,
activity, solvency, profitability and the DuPont model. The results of the
research for liquidity ratios indicate that on average the industry has
decreased the company's ability to meet short-term obligations. For the
activity ratio for five years, there has been an increase in efficiency in
the use of company assets, while financing sourced from debt has not
experienced significant changes. With the ability to decrease liquidity,
total debt tended to remain constant and increased efficiency but the
company's profitability performance decreased. In addition, the results
of the study also showed that although they are members of the same
industry group, namely the retail trade industry, there are several
companies with a "subsector" group of retail trade in
telecommunications products that have ratios far different from the
average ratio of the retail trade industry. We suggest that future research
be focused on the relationship between financial statement performance
and the price of shares traded on the stock exchange.
Key words: Financial Performance, Dupont Analysis, Retail Trade Companies.
Introduction
The reading financial statements is needed by company management, investors who have
made investments and potential investors, creditors and the general public. For financial
statement management, it can be used to measure how efficiently they manage the
806
company and to predict future operational activities. For example, to predict how many
sales they want, profits to be achieved and what investments should be made. For investors,
financial statement information is used to assess how profitable their investment is in the
company (Endri et al. 2019). The creditor certainly needs data about the financial
statements to determine whether to give credit or not to the company. As for the general
public, financial statements are useful to see how much corporate social responsibility is
budgeted by the company. The general public, especially students, can use this information
as material in academic interests. To be able to provide this information, the financial
statements that the company has prepared need to be further processed by analysing
financial statements. Analysis of the plural financial statements used is to calculate
financial ratios. There are a number of ratios to measure financial statements, namely;
activity, liquidity, solvency, and profitability. In addition to this ratio, there is a DuPont
analysis model created in the early 1990s that is used to analyse a company's ability to
increase return on equity (ROE) (Shella & Karthikeyan, 2012) and is a very useful ratio to
determine the company's capability to benefit through its business operations (Lev &
Thiagarajan, 1993; Soliman, 2003; Bauman, 2014; Endri & Fathony, 2020).
The retail business sector in Indonesia began in the 1990s, marked by the opening of the
Japanese retail company "SOGO" in Jakarta and after that experienced rapid business
growth. According to a review of Business Watch Indonesia, modern retail businesses
have increased by 20% since 2000 and in 2007 increased to 40%. Modern retail sales
reached IDR205 trillion in 2016, IDR212 trillion in 2017 and IDR233 trillion in 2018.
Significant growth in the retail business is interesting to analyse the performance of
modern retail companies through published financial statements. Therefore, the research
objective is to get an overview of the performance of the financial statements of several
companies that have made an initial public offering on the Indonesia Stock Exchange,
particularly companies in the trade sector with the retail trade subsector. The conclusion
in this research can be utilised by management in assessing how competitive their company
is when compared to other companies in the same business. As for investors, this
information can be used to decide which companies produce better returns compared with
other companies.
Literature Review
Financial Statements
Financial Statements are a collection of data and financial actions of a company in an

accounting period that can be used to translate the company's performance. Financial
Statements consist of (Endri et al. 2020):
• Balance Sheet.
807
The balance sheet is a portrait of the accountant about the company's accounting value
as of the date, as if the company stood still for a moment (Ross et al. 2002).
• Comprehensive Income Statement.
The income statement assesses the company's performance in a certain time period,
for example a year (Ross et al. 2002).
• Statement of Changes in Equity.
• Cash flow statement.
• Notes to the financial statements which are an inseparable part of the financial
statements.
Financial Statement Analysis
Wild et al. (2004) interpreted the analysis of financial statements as the use of financial
statements in reviewing the company's financial performance and position in order to
access future financial performance. According to Ross et al., (2002) financial statement
analysis consists of:
1. Liquidity Ratio
Ratio that assesses the company's capability to pay off recurring financial
obligations, namely to pay debts or bills.
2. Activity Ratio
Ratio that assesses the effectiveness of managing company assets.
3. Solvency Ratio
The Solvency Ratio is related to the extent to which the company relies more on
debt financing rather than equity. This ratio also illustrates how much the
company's assets are funded with debt.
4. Profitability Ratio
The ratio is used to measure the company's capabilities in obtaining profits from
income related to assets, sales and equity using certain valuation methods (Shania
& Endri, 2020)
Previous Research
Ratios that have been calculated are then compared with ratios from similar companies to
provide a more precise picture of the company's performance. The activity of comparing
company ratios with a group of similar businesses is a common practice. Kalayci et al.
(2005) conducted a study of 160 companies exhibited at ISE. The results obtained
validating the use of sector averages for financial ratios are appropriate tools in
determining benchmarks of operational and financial performance of companies at ISE.
In 2012, Shella & Karhikeyan (2012) examined the financial performance of the top three
pharmaceutical companies in India using a comparison analysis of Return on Equity
808
(ROE) and Return on Investment (ROI). The conclusion of the study states that ROE and
ROI are the most comprehensive measures of company profitability. The findings of
Padake & Soni (2015) in examining the top 12 banks in India using DuPont analysis, said
that DuPont analysis provides a deeper understanding of bank efficiency. Prabowo &
Korsakul (2020) examined the financial performance of mining companies listed on the
Indonesia Stock Exchange. However, a company's performance based on financial ratios
does not always have the same value if it is assessed using the Economic Value Added
approach (Endri & Wakil, 2008).
Research on the company's financial performance which listed its shares on the exchange
is not new. There are several researchers who have done it before. Chandra & Susanti
(2012) stated that there was no effect of the global crisis on the financial performance and
potential bankruptcy of the service, trade and investment companies in the Indonesia Stock
Exchange. Among a series of financial ratios, the current ratio better illustrates the effect
of the business combination on the company's financial performance (Sugianto et al.
2020). Analysis of corporate financial data provides an overview of investors to make
long-term or short-term investments (Bansal, 2014). Doorasamy (2016) gives an example
of using DuPont analysis to analyse the financial performance of the top 3 companies in
the South African food industry. ROE and Net Profit Margin (NPM) have a positive and
significant influence on the manufacturing industry stock prices listed on IDX (Hutami.
2012, Harahap, 2018). Current Ratio, Inventory Turnover, Time Interest Earned and ROE
have a significant effect on stock prices (Setiyawan & Pardiman, 2014).
Methodology
This study used descriptive qualitative method. The object of the research is companies
that have offered initial shares and shares traded on the Indonesia Stock Exchange (IDX)
in the period 2014 to 2018. Data obtained from annual reports or financial reports for 2014
to 2018 are available on the websites of each company. The sample was selected with the
criteria of private sector trading companies in the retail trade sub sector whose shares were
traded on IDX in the period 2014 to 2018 and have announced their financial statements.
Based on these criteria, a sample of 17 companies was selected.
809
Table 1: List of sample companies.

No Company Code Company Name
1. ACES PT. Ace Hardware Indonesia Tbk.
2. AMRT PT. Sumber Alfaria Trijaya Tbk.
3. CSAP PT. Catur Sentosa Adiprana Tbk.
4. ECII PT. Electronic City Indonesia Tbk.
5. ERAA PT. Erajaya Swasembada Tbk.
6. GLOB PT. Global Teleshop Tbk.
7. HERO PT. Hero Supermarket Tbk.
8. KOIN PT. Kokoh Inti Arebama Tbk
9. LPPF PT. Matahari Department Store Tbk.
10. MAPI PT. Mitra Adiperkasa Tbk.
11. MIDI PT. Midi Utama Indonesia Tbk.
12. MPPA PT. Matahari Putra Prima Tbk.
13. RALS PT. Ramayana Lestari Sentosa Tbk.
14. RANC PT. Supra Boga Lestari Tbk.
15. SONA PT. Sona Topas Tourism Industry Tbk.
16. TELE PT. Tiphone Mobile Indonesia Tbk.
17. TRIO PT. Trikomsel Oke Tbk.
Ratios used in assessing company performance are: liquidity, activity, solvency, and
profitability.
Liquidity Ratio
• Net Working Capital (NWC)
NWC is defined as the money available to fund the company's daily operations. NWC
is obtained by reducing current assets with current debt.
• Current Ratio (CR)
CR is a measurement that shows the company's strength in meeting its short-term debt
obligations. CR is obtained by dividing current assets by current debt and then
multiplied by 100%.
Activity Ratio
• Inventory Turnover Ratio (ITR)
ITR is a measurement that shows the number of times a company is able to sell a
yearly total inventory. ITR is obtained by dividing the cost of goods sold by the
average inventory in a period.
• Fixed Assets Turnover (FAT)
810
FAT is a measurement that shows how effectively and efficiently the company
empowers its fixed assets to earn income. FAT is obtained by dividing sales by
inventory.
Solvency Ratio
• Debt to Assets Ratio (DAR)
DAR is a measurement that shows how much the company's assets are funded by total
debt. DAR is obtained by dividing total debt by total assets and then multiplying 100%.
• Debt to Equity Ratio (DER)
DER is a measurement that states the proportion between equity and debt used to fund
a company's assets. This ratio is also used to assess the funding structure of a company.
DER is obtained by the method of dividing overall debt by overall equity then
multiplied by 100%.
Profitability Ratio
• Gross Profit Margin (GPM)
GPM is a measurement that shows how efficiently a company utilises its resources to
produce products and sell its products for profit. GPM is obtained by dividing gross
profit by sales and then multiplied by 100%.
• Net Profit Margin (NPM)
NPM is a measurement that shows how efficiently management organises the company
and is used to predict future profits based on sales plans made by management. NPM
is obtained by dividing net income after tax by sales and then multiplied by 100%.
DuPont Analysis
• Return on Assets (ROA)
ROA is a measurement that shows the percentage of net profit obtained by the
company in relation to the average number of assets. ROA is obtained by dividing net
income by total assets and then multiplied by 100%.
• Return on Equity (ROE)
ROE is a measurement that shows the capabilities of the company in order to obtain
profits from shareholder investment. ROE is obtained by dividing net income by total
equity then multiplied by 100%.
Benchmark
A benchmark is an activity comparing someone's property with himself, competition, or
the industry as a whole. In comparing with yourself, both with a historical perspective or
with a budget, trends, weaknesses, and opportunities for improvement can be identified
(Schmidgall & DeFranco, 2004). In this study, we will compare the company's financial
statements with the trend average and the industry average. Trend benchmarks are
811
obtained by comparing the ratio data of each company for 5 years (from 2014 to 2018).
An industry benchmark is obtained by adding up data from each ratio per year and dividing
it by the number of sample companies.
Results
Liquidity Ratio
• Net Working Capital (NWC)

Based on the calculation it can be seen that there are 3 companies that have increased
NWC over the past 5 years, namely: PT. Ace Hardware Indonesia Tbk., PT. Catur Sentosa
Adiprana Tbk. and PT. Supra Boga Lestari Tbk. The increase in NWC means that the three
companies have successfully carried out their operational activities efficiently and have
been able to increase their ability to finance daily operational funds for the future. The
company also has the potential to invest and develop. On the other hand, there are 3
companies that have negative value NWC, namely: PT. Global Teleshop Tbk, PT. Midi
Utama Indonesia Tbk. and PT. Trikomsel Oke Tbk. Negative NWC net indicates the
company is not in a healthy short-term financial condition. Companies will have difficulty
investing and developing. Among the 3 companies, there is one company that has
consistently experienced a decrease in NWC, namely PT. Midi Utama Indonesia Tbk. If
the company continues to experience a decrease in NWC in the future, it can cause loss of
investor confidence and the risk of bankruptcy.
812
Table 2: Net Working Capital

Net Working Capital (in million rupiah)
No. Code
2014 2015 2016 2017 2018
1. ACES 1.744.454 2.055.106 2.433.416 2.880.063 3.465.200
2. AMRT -729.100 714.894 -1.187.163 -1.511.713 1.664.096
3. CSAP 289.726 209.111 641.963 502.707 783.987
4. ECII 1.272.025 1.175.756 1.096.873 1.161.044 1.116.434
5. ERAA 40.275.000 1.066.227 1.233.005 1.635.817 2.313.099
6. GLOB 508.747 -616.138 -216.500 -214.782 -236.284
7. HERO 495.115 548.721 846.299 543.284 795.255
8. KOIN 85.166 87.004 90.221 91.079 68.538
9. LPPF -401.014 -166.073 385.698 362.925 274.597
10. MAPI 1.320.200 2.405.667 2.434.951 2.233.828 1.893.914
11. MIDI -254.396 -341.075 -524.952 -761.375 -785.347
12. MPPA 1.154.434 895.030 768.578 -1.390.361 -414.667
13. RALS 1.727.400 1.870.282 1.521.205 1.044.856 2.464.393
14. RANC 97.078 99.048 151.097 181.207 195.511
15. SONA 498.517 529.828 437.448 455.927 608.604
16. TELE 1.943.180 5.107.277 6.224.911 5.956.541 6.143.121
17. TRIO 5.177.890 -3.449.277 -3.975.123 -496.208 -700.924
Source: Data processed (2020)
• Current Ratio (CR)

Calculation results show that the industry ratios were 297% in 2014, 227% in 2015and
2016, 212% in 2017 and 223% in 2018 (see Table 2). There are 3 companies that have a
current ratio above the industry, namely: PT. Ace Hardware Indonesia Tbk., PT.
Electronic City Indonesia Tbk. and PT. Supra Boga Lestari Tbk. This shows that the three
companies have the power to pay off short-term debt better than the average of other
companies with the same business. However, PT. Ace Hardware Indonesia Tbk. and PT.
Electronic City Indonesia Tbk. had a ratio that was too high. A ratio that is too high can
have a negative effect on potential investors. Potential investors will assess if the company
has a lot of funds that are not used efficiently. PT. Global Teleshop Tbk., PT. Midi Utama
Indonesia Tbk. and PT. Trikomsel Oke Tbk. are 3 companies that have the lowest ratio
compared to the industry ratio with an average value below 100%. This means the
company has a liquidity problem from its business which can cause investors not to want
to invest their funds in the company.
813
Table 3: Current Ratio

Current Ratio (%)
No. Code
2014 2015 2016 2017 2018
1. ACES 509% 598% 726% 702% 649%
2. AMRT 91% 110% 90% 88% 115%
3. CSAP 113% 109% 126% 116% 124%
4. ECII 860% 934% 813% 918% 840%
5. ERAA 1482% 124% 131% 132% 130%
6. GLOB 140% 10% 16% 13% 9%
7. HERO 118% 123% 143% 127% 137%
8. KOIN 121% 116% 116% 115% 109%
9. LPPF 84% 93% 115% 114% 110%
10. MAPI 134% 173% 158% 149% 135%
11. MIDI 82% 79% 77% 72% 73%
12. MPPA 142% 132% 123% 64% 86%
13. RALS 279% 295% 216% 200% 325%
14. RANC 131% 133% 159% 160% 156%
15. SONA 320% 322% 251% 222% 256%
16. TELE 179% 506% 599% 388% 519%
17. TRIO 259% 8% 5% 26% 15%
Industry 297% 227% 227% 212% 223%
Activity Ratio
• Inventory Turnover Ratio

The results of the calculation of inventory turnover ratio of PT. Global Teleshop Tbk. and
PT. Trikomsel Oke Tbk are the highest compared to the industry ratio. With a ratio value
7 times above, it indicates that the company is able to sell goods quickly or that there is
demand for goods sold by the company. The ratio that is too high compared to other
companies in the industry can be explained because the two companies are engaged in
retailing telecommunications products. On the other hand, the companies that have the
lowest ratio compared to its industry are PT. Ace Hardware Indonesia Tbk. and PT. Mitra
Adiperkasa Tbk. with a ratio value ranging from 2-3 times. The low ratio indicates that
there is a low level of sales and a decrease in demand for products sold, or buyers moving
to other similar companies.
814
Table 4: Inventory Turnover Ratio

Inventory Turnover Ratio (time)
No. Code
2014 2015 2016 2017 2018
1. ACES 1,81 1,63 1,62 1,67 1,50
2. AMRT 7,00 8,59 7,47 7,13 7,42
3. CSAP 5,00 4,66 4,20 4,69 4,39
4. ECII 3,68 3,32 3,27 3,96 4,87
5. ERAA 6,58 7,25 8,51 6,51 4,65
6. GLOB 7,07 68,42 21,08 28,42 88,05
7. HERO 4,60 5,37 5,15 5,93 5,65
8. KOIN 7,57 7,70 4,79 5,79 5,44
9. LPPF 3,01 3,31 3,70 3,74 3,00
10. MAPI 1,98 2,04 2,42 2,76 3,05
11. MIDI 6,22 7,10 6,49 6,50 6,74
12. MPPA 4,23 4,62 4,09 7,31 5,66
13. RALS 4,72 4,29 4,38 4,60 3,76
14. RANC 6,61 7,32 7,45 6,86 7,74
15. SONA 2,59 2,74 2,99 2,31 2,30
16. TELE 14,52 11,00 8,85 7,42 7,89
17. TRIO 4,72 77,00 12,03 21,37 23,73
Industry 5,41 13,31 6,38 7,47 10,93
• Fixed Assets Turnover

In relation to the results of the calculation of inventory turnover ratio, PT. Global Teleshop
Tbk. and PT. Trikomsel Oke Tbk had a fixed assets turnover ratio above the industry
average with an average value of 7-20 times higher. While PT. Ace Hardware Indonesia
Tbk. and PT. Sona Topas Tourism Industry Tbk. had a low ratio with values ranging from
3 times and 4 times. Through this ratio, it can be seen that companies engaged in retailing
telecommunications products dominate compared to companies in retail products for
household products, clothing and tourism. Telecommunications product retail companies
tend to have small fixed assets, but have a product sales level that is greater than other
retail companies. However, PT. Tiphone Mobile Indonesia Tbk. those engaged in retailing
telecommunications products tend to have a declining ratio. This indicates that the
company is unable to utilise its assets efficiently and effectively or that the products sold
are no longer in accordance with the tastes of consumers.
815
Table 5: Fixed Asses Turnover Ratio

Fixed Asset Turnover (time)
No Code
2014 2015 2016 2017 2018
1. ACES 3,47 3,08 3,07 3,18 2,83
2. AMRT 8,61 10,62 9,26 8,86 9,25
3. CSAP 5,75 5,39 4,87 5,45 5,11
4. ECII 4,55 4,08 3,85 4,65 5,67
5. ERAA 7,23 7,84 9,33 7,15 5,11
6. GLOB 7,77 71,51 22,38 29,95 94,45
7. HERO 5,97 6,99 6,97 8,06 7,90
8. KOIN 9,38 9,53 5,92 6,97 6,32
9. LPPF 8,30 8,94 9,94 9,97 7,94
10. MAPI 3,69 3,82 4,38 5,32 5,86
11. MIDI 8,14 9,46 8,73 8,64 9,00
12. MPPA 5,12 5,53 8,31 7,94 6,56
13. RALS 6,35 5,81 5,92 6,46 5,59
14. RANC 8,93 9,68 9,07 9,12 10,35
15. SONA 4,85 5,19 3,20 4,29 4,43
16. TELE 15,38 11,64 7,76 7,86 8,34
17. TRIO 5,53 79,11 26,22 23,17 25,52
Industry 7,00 15,19 8,77 9,24 12,95
Solvency Ratio
• Debt to Assets Ratio

The debt to assets ratio calculation results show that PT. Global Teleshop Tbk. and PT.
Trikomsel Oke Tbk had quite a large ratio when compared to its industry, while PT. Ace
Hardware Indonesia Tbk., PT. Electronic City Indonesia Tbk. and PT. Ramayana Lestari
Sentosa Tbk. had fairly low ratios. Even PT. Electronic City Indonesia Tbk. had a ratio
below 10%. With a fairly large ratio, ranging above 1000%, PT. Global Teleshop Tbk.
and PT. Trikomsel Oke Tbk had significant risk related to the company's operations. The
company is very dependent on debt financing to buy its assets. This ratio can also describe
that the company has a very large amount of debt and has very little assets. For companies
that have a fairly low ratio, it can be interpreted that the company only has a small portion
of assets funded with debt. This ratio describes the company's potential to be able to make
loans in the future without significant risk.
816
Table 6: Debt to Assets Ratio

Debt to Assets Ratio (%)
No. Code
2014 2015 2016 2017 2018
1. ACES 20% 20% 18% 21% 20%
2. AMRT 79% 68% 73% 76% 73%
3. CSAP 75% 76% 67% 70% 66%
4. ECII 11% 7% 8% 10% 10%
5. ERAA 51% 59% 54% 58% 62%
6. GLOB 69% 554% 1012% 1225% 1997%
7. HERO 34% 33% 27% 29% 37%
8. KOIN 78% 82% 83% 85% 88%
9. LPPF 95% 72% 62% 57% 64%
10. MAPI 70% 69% 70% 63% 52%
11. MIDI 76% 77% 79% 81% 78%
12. MPPA 51% 58% 64% 78% 76%
13. RALS 26% 27% 28% 29% 27%
14. RANC 208% 216% 249% 43% 44%
15. SONA 40% 38% 43% 44% 39%
16. TELE 50% 61% 61% 60% 53%
17. TRIO 74% 891% 1683% 1434% 1951%
Industry 65% 142% 217% 204% 279%
• Debt to Equity Ratio (DER)

PT. Sumber Alfaria Trijaya Tbk., PT. Sturdy Inti Arebama Tbk. and PT. Midi Utama
Indonesia Tbk. are 3 companies with the biggest DER value. Among the three companies,
only PT. Sturdy Inti Arebama Tbk. had a DER value that always increased during the
period 2014 to 2018. In 2018 the DER value is far above the average, which is 730%. The
DER value continues to rise and reached 730%, indicating that their business receives
funding from debt that is greater than its equity funding. Financing from debt requires
payment of the loan principal and interest. With large debts, loan interest paid is also large,
resulting in reduced profit. The company also has a large risk associated with the risk of
default on future loans and interest. In Table 7 it can be seen that there are 2 companies
that have negative DER from year to year, namely PT. Global Teleshop Tbk. and PT.
Trikomsel Oke Tbk. The negative DER value explains that the company bears losses, so
the value of equity is deficit. Both companies suffered significant losses in 2015, however,
the company's performance gradually improved as evidenced by the smaller negative
value of DER. Meanwhile, PT. Supra Boga Lestari Tbk. had a DER value that declined
over the last 5 years. This indicated the company is able to manage the company's finances
well and pay off most of its debts.
817
Table 7: Debt to Equity Ratio

Debt to Equity Ratio (time)
No. Code
2014 2015 2016 2017 2018
1. ACES 25% 24% 22% 26% 26%
2. AMRT 367% 213% 268% 317% 268%
3. CSAP 304% 313% 200% 237% 198%
4. ECII 13% 8% 9% 11% 12%
5. ERAA 103% 143% 118% 139% 163%
6. GLOB 227% -122% -111% -109% -105%
7. HERO 52% 50% 37% 42% 59%
8. KOIN 360% 456% 484% 567% 730%
9. LPPF 1819% 252% 162% 133% 177%
10. MAPI 233% 219% 233% 169% 108%
11. MIDI 317% 339% 376% 429% 359%
12. MPPA 105% 140% 176% 362% 318%
13. RALS 36% 37% 39% 40% 37%
14. RANC 192% 186% 167% 75% 79%
15. SONA 66% 60% 76% 79% 64%
16. TELE 101% 153% 156% 147% 114%
17. TRIO 282% -113% -106% -107% -105%
Industry 271% 139% 136% 150% 147%
Profitability Ratio
• Gross Profit Margin

Based on the calculation results, it can be seen that the majority of companies have a
relatively stable trend of gross profit margin during the 2014-2018 time frame. Only three
companies had extreme fluctuation ratios in that time period. The three companies are PT.
Global Teleshop Tbk., PT. Tiphone Mobile Indonesia Tbk. and PT. Trikomsel Oke Tbk.
and are engaged in retailing telecommunications products. As can be seen in Table 8, the
three companies experienced a sharp increase in 2015 and 2016, then returned to normal
ratios in 2017 and 2018. Other data and information are needed to be able to analyse these
events. There are 3 companies that have a gross profit margin ratio above the industry
average, namely PT. Ace Hardware Indonesia Tbk., PT. Matahari Department Store Tbk.
and PT. Mitra Adiperkasa Tbk. PT. Hero Supermarket Tbk. managed to increase the ratio
in succession in that time period. The gross profit margin ratio provides an illustration of
how effective and efficient the retail business is in carrying out product sales activities. A
higher ratio than competitors for the same business, indicates the company is able to sell
similar products at relatively more expensive prices.
818
Table 8: Gross Profit Margin

Gross Profit Margin Ratio (%)
No. Code
2014 2015 2016 2017 2018
1. ACES 48% 47% 47% 47% 47%
2. AMRT 19% 19% 19% 20% 20%
3. CSAP 13% 13% 14% 14% 14%
4. ECII 19% 19% 15% 15% 14%
5. ERAA 9% 8% 9% 9% 9%
6. GLOB 9% 99% 96% 5% 7%
7. HERO 23% 23% 26% 26% 28%
8. KOIN 19% 90% 83% 17% 14%
9. LPPF 64% 63% 63% 62% 62%
10. MAPI 46% 74% 77% 48% 48%
11. MIDI 24% 25% 26% 25% 25%
12. MPPA 17% 82% 88% 8% 14%
13. RALS 26% 83% 83% 29% 33%
14. RANC 26% 90% 89% 25% 25%
15. SONA 47% 81% 69% 46% 48%
16. TELE 6% 91% 87% 6% 5%
17. TRIO 15% 99% 96% 8% 7%
Industry 25% 59% 58% 24% 25%
• Net Profit Margin

Net profit margin calculation results show PT. Ramayana Lestari Sentosa Tbk. posted an
upward trend in the last 5 years. Although the ratio is only slightly above the industry ratio,
the company is able to show consistency in increasing the ratio. PT. Matahari Department
Store Tbk. had the largest ratio value compared to the industry ratio, however, the
company experienced a significant decline in the ratio in 2018. PT. Global Teleshop Tbk
and PT. Trikomsel Oke Tbk. recorded a negative value on their ratio since 2015, but the
company's performance gradually improved marked by the smaller value of their negative
ratios in 2018. Meanwhile, PT. Matahari Putra Prima Tbk. is the only company in 2014
which recorded a ratio value of an industry average of 4%, but from year to year it showed
a decline in the value of the ratio to reach -8% in 2018. This ratio provides an illustration
for investors to assess the efficiency of management performance in managing their
company, because through this ratio it is known what percentage of sales are used to fund
operational costs and non-operational costs. In addition, this ratio also provides
information to investors about what percentage of remaining profits might be paid to
investors through dividends.
819
Table 9: Net Profit Margin Ratio

Net Profit Margin Ratio (%)
No. Code
2014 2015 2016 2017 2018
1. ACES 12% 13% 14% 13% 15%
2. AMRT 1% 1% 1% 0% 2%
3. CSAP 2% 1% 1% 1% 1%
4. ECII 6% 2% -1% -1% 1%
5. ERAA 1% 1% 1% 1% 3%
6. GLOB 2% -45% -21% -2% -4%
7. HERO 1% -2% 2% -2% -10%
8. KOIN 2% 1% 0% -1% 0%
9. LPPF 18% 20% 20% 19% 11%
10. MAPI 1% 1% 2% 2% 5%
11. MIDI 2% 2% 2% 1% 2%
12. MPPA 4% 2% 0% -10% -8%
13. RALS 7% 7% 8% 8% 13%
14. RANC 1% -1% 2% 2% 2%
15. SONA 9% 3% -1% 3% 6%
16. TELE 2% 2% 2% 1% 1%
17. TRIO 3% -136% -29% -9% -1%
Industry 4% -8% 0% 2% 2%
DuPont Analysis
• Return on Assets
The calculation result shows that PT. Matahari Department Store Tbk. had the highest
return on assets ratio and was above the industry average. However, trend analysis shows
the ratio of PT. Matahari Department Store Tbk. tended to decrease to 50% in the period
2014-2018. PT. Ace Hardware Indonesia Tbk. had a ratio value that tended to be stable
and was above the industry average. While PT. Global Teleshop Tbk and PT. Trikomsel
Oke Tbk. had a negative ratio value from 2015 to 2018, but showed a reduction in negative
values, which means the company's performance had gradually improved. This ratio gives
an idea to potential investors, how efficient and effective management is in using the
money invested by investors to fund operations and develop the company.
820
Table 10: Return on Assets

Return on Assets Ratio (%)
No. Code
2014 2015 2016 2017 2018
1. ACES 18% 18% 18% 17% 20%
2. AMRT 4% 3% 3% 1% 5%
3. CSAP 3% 1% 2% 2% 2%
4. ECII 6% 2% -1% -1% 1%
5. ERAA 3% 3% 3% 4% 7%
6. GLOB 5% -911% -158% -24% -57%
7. HERO 1% -3% 3% -4% -20%
8. KOIN 5% 2% 0% -1% -1%
9. LPPF 42% 46% 41% 35% 23%
10. MAPI 1% 1% 2% 3% 7%
11. MIDI 5% 5% 5% 2% 4%
12. MPPA 19% 4% 1% -23% -17%
13. RALS 8% 7% 9% 8% 11%
14. RANC 3% -6% 14% 4% 6%
15. SONA 10% 4% -2% 5% 10%
16. TELE 6% 5% 6% 5% 5%
17. TRIO 4% -1087% -118% -71% -9%
Industry 8% -112% -10% -2% 0%
• Return on Equity
The calculation result showed that PT. Matahari Department Store Tbk. had a return on
equity ratio above the industry average. This ratio shows the company has the ability to
get a greater profit than every rupiah invested in working capital. With a higher ratio, the
company has the potential to invite investors to invest their funds in the company.
However, a significant downward trend in the ratio from 2014-2018 indicates a decline in
sales growth. PT. Erajaya Swasembada Tbk. and PT. Mitra Adiperkasa Tbk. had a ratio
that as not too large, showed an increase in the ratio over the same time period. The
increase in this ratio indicates the performance of the two companies improved from year
to year. There are two companies that experienced a decline in ratio and had a negative
ratio in 2018. The two companies are PT. Hero Supermarket Tbk. and PT. Matahari Putra
Prima Tbk. Both companies indicated losses in recent years.
821
Tabel. 11: Return on Equity

Return on Equity Ratio (%)
No. Code
2014 2015 2016 2017 2018
1. ACES 23% 23% 22% 21% 25%
2. AMRT 18% 10% 10% 2% 17%
3. CSAP 14% 5% 5% 6% 5%
4. ECII 7% 2% -1% -1% 1%
5. ERAA 7% 8% 8% 9% 19%
6. GLOB 16% 201% 17% 2% 3%
7. HERO 2% -5% 4% -5% -32%
8. KOIN 23% 11% -2% -9% -8%
9. LPPF 799% 163% 108% 81% 63%
10. MAPI 3% 2% 7% 8% 15%
11. MIDI 22% 20% 23% 9% 17%
12. MPPA 19% 9% 2% -107% -72%
13. RALS 11% 10% 12% 11% 16%
14. RANC 2% -5% 10% 8% 10%
15. SONA 16% 6% -3% 8% 16%
16. TELE 12% 13% 14% 12% 10%
17. TRIO 14% 137% 7% 5% 0%
Industry 59% 36% 14% 4% 6%
Conclusion
This research was conducted on companies whose shares are traded on the Indonesia Stock
Exchange, especially in the trade sector with the retail trade subsector. Broadly speaking,
there are several types of retail trade in this subsector, including retail trade in
telecommunications products, retail trade in household products, retail trade in food
products, beverages and daily necessities, and retail trade in products related to tourism.
Based on the analysis of financial statements on several ratios related to financial
statements, the following results are obtained: PT. Ace Hardware Indonesia Tbk. recorded
a large net working capital and has continued to show an increase in recent years, has a
fairly large current ratio, a low debt to assets ratio, a relatively low debt to equity ratio, a
higher gross profit margin and a stable net profit margin. Broadly speaking, PT. Ace
Hardware Indonesia Tbk. showed a fairly good performance in the period 2014-2018.
With the performance shown, in the future the company can be expected to continue to
develop and has the potential to get investment both from debt funding and equity funding.
PT. Sturdy Inti Arebama Tbk. shows less than optimal performance illustrated through the
debt to equity ratio performance that tends to rise every year. This is coupled with return
822
on equity which had a negative value for the past 3 years. This provides information that
the company continues to increase its total debt, while the company's performance shows
a decrease in profits or results in losses.
Meanwhile, there are two companies that show anomalous results from the calculation of
their ratios, namely PT. Global Teleshop Tbk. and PT. Trikomsel Oke Tbk. Both
companies engaged in telecommunications product retails recorded negative net working
capital, a very low current ratio compared to industry ratios, a large debt to assets ratio and
a large debt to equity ratio, but had a high inventory turnover ratio and fixed assets turnover
is also high. Specifically, for PT. Global Teleshop Tbk. and PT. Trikomsel Oke Tbk. a
more in-depth analysis of the company's financial statements and annual reports are
required to get a more precise picture of the company's performance.
There are two suggestions for future research, namely: First, to get the results of a more
in-depth and accurate analysis, future research can be broken down into several subsectors
based on the type of retail trade. For example, financial statement analysis for the types of
retail trade in telecommunications products, retail trade in household products and retail
trade in food, beverage and daily necessities. This is intended to avoid data differences
that are large enough to cause inaccurate analysis results. Second, conduct further analysis
of the effect of the performance of financial statements on fluctuations in the company's
stock price on the exchange. The expected outcome is whether there is a relevant link
between financial statement performance (fundamental factors) and the price of shares
traded on the stock exchange.
823
REFERENCES
Bansal, R. (2014). A comparative financial study: Evidence from selected indian retail
companies. Journal of Finance and Investment Analysis, 3(3), 13-35.
Bauman, M.P. (2014). Forecasting operating profitability with dupont analysis further
evicence. Review of Accounting and Finance, 13(2), 191-205.
Chandra, T., & Susanti, V. (2012). Analisis Perbedaan kinerja keuangan dan tingkat potensi
kebangkrutan perusahaan sektor perdagangan, jasa, investasi di BEI. Jurnal Bisnis Pelita
Indonesia, 1(3), 129-247.
Doorasamy, M. (2016). Using du pont analysis to assess the financial performance of the top
3 jse listed companies in the food industry. Investment Management and Financial
Innovation,13(2), 29-44. http://dx.doi.org/10.21511/imfi.13(2).2016.04.
Endri, E., Sumarno, A., & Saragi, H. (2020). Analysis of financial performance: evidence from
food and beverage companies in Indonesia. International Journal of Advanced Science
and Technology,29(5),4199 – 4208.
Endri, E., & Fathony, M. (2020). Determinants of firm’s value: Evidence from financial
industry. Management Science Letters, 10(1), 111-120. doi: 10.5267/j.msl.2019.8.011.
Endri, E., Dermawan. D., Abidin. Z., & Riyanto, S. (2019). Effect of financial performance on
stock return: evidence from the food and beverages sector. International Journal of
Innovation, Creativity and Change,9(10), 335-350.
Endri, E., & Wakil, A. (2008). Analisis kinerja keuangan dengan menggunakan rasio-rasio
keuangan dan economic value added (Studi Kasus: PT. Bank Syariah Mandiri). Tazkia
Islamic Finance & Business Review, 3(2), 113-134.
Harahap, I. M. (2018). Impact of bank performance on profitability. Scholars Journal of

Economics, Business and Management, 5(8),727-733.
Hutami, R. P. (2012). Pengaruh dividen per share, return on equity dan net profit margin
terhadap harga saham perusahaan industri manufaktur yang tercatat di bursa efek
Indonesia Periode 2006-2010. Jurnal Nominal,1(1), 104-123.
Kalayci, S., Karatas, A., Coskun, A., & Kirtas, A. (2005). Financial ratio classification and
sub-sector discrimination of manufacturing firms evidence from an emerging market.
The Journal of Enterpreneurial Finance,10, 103-125.
824
Kangari. R., Farid, F., & Elgharib, H.M.(1992). Financial Performance analysis for
construction industry. Journal of Construction Engineering and Management, 118(2),
349-361.
Lev, B., & Thiagarajan, S.R.(1993). Fundamental information analysis. Journal of Accounting
Research, 31(2),190-215.
Padake, V., & Soni, R. (2015). Measurement of efficiency through dupont analysis: a study of
top 12 banks in India. The IUP Journal of Bank Management, 14(4),1-11.
Prabowo, S.C.B., & Korsakul, N. (2020). Analysis of financial performance of mining

companies listed in indonesia stock exchange. Jurnal of Applied Management, 18(1), 28-
45.
Ross, S.A., Westerfield, R.W., & Jaffe, J.F.(2002). Corporate Finance. 6th ed. New York: The
McGraw-Hill.
Shahnia, C., & Endri, E. (2020). Dupont analysis for the financial performance of trading,
service & investment companies in Indonesia. International Journal of Innovative
Science and Research Technology, 5(4), 193-211.
Schmidgall, R.S., & DeFranco, A.L. (2004). Ratio Analysis: Financial benchmarks for the club
industry. The Journal of Hospitality Financial Management, 12(1), 1-14.
Setiyawan, I., & Pardiman. (2014). Pengaruh current ratio, inventory turnover, time interest
earned dan return on equity terhadap harga saham pada perusahaan manufaktur sektor
barang konsumsi yang terdaftar di bei periode 2009-2012. Jurnal Nominal, 3(2),35-51.
Shella, S.C., & Karthikeyan, K. (2012). Financial performance of pharmaceutical industry in

india using dupont analysis. European Journal of Business and Management, 4(14), 84-
91.
Soliman, M.T. (2003). Using industry-adjusted dupont analysis to predict future profitability.
Graduate School of Business, Stanford University.
Sugianto, S., Oemar, F., Hakim, L., & Endri, E (2020). Determinants of Firm Value in the
Banking Sector: Random effects model. International Journal of Innovation, Creativity
and Change, 12(8), 208-218.
Wild, J.J., Subromanyam, R.K., & Halsey, F.R. (2004). Financial statement analysis. New
York: McGraw – Hill/Irwin.
825
View publication stats

14175_Nurhayati_2020_E_R (1)

Uploaded by

Copyright:

Available Formats

14175_Nurhayati_2020_E_R (1)

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

14175_Nurhayati_2020_E_R (1)

Uploaded by

Copyright:

Available Formats

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

Financial Performance Analysis: Evidence of Retail Trade Companies in

Article · August 2021

Immas Nurhayati Endri Endri

SEE PROFILE SEE PROFILE

The user has requested enhancement of the downloaded file.

Financial Performance Analysis:

The research intends to evaluate the financial performance of retail trade

Key words: Financial Performance, Dupont Analysis, Retail Trade Companies.

Financial Statements are a collection of data and financial actions of a company in an

Financial Statement Analysis

Table 1: List of sample companies.

• Net Working Capital (NWC)

Table 2: Net Working Capital

• Current Ratio (CR)

Table 3: Current Ratio

• Inventory Turnover Ratio

Table 4: Inventory Turnover Ratio

• Fixed Assets Turnover

Table 5: Fixed Asses Turnover Ratio

• Debt to Assets Ratio

Table 6: Debt to Assets Ratio

• Debt to Equity Ratio (DER)

Table 7: Debt to Equity Ratio

• Gross Profit Margin

Table 8: Gross Profit Margin

• Net Profit Margin

Table 9: Net Profit Margin Ratio

Table 10: Return on Assets

Tabel. 11: Return on Equity

Harahap, I. M. (2018). Impact of bank performance on profitability. Scholars Journal of

Prabowo, S.C.B., & Korsakul, N. (2020). Analysis of financial performance of mining

Shella, S.C., & Karthikeyan, K. (2012). Financial performance of pharmaceutical industry in

View publication stats

You might also like