Differences in the Financial Performance before and after Revaluation of Fixed Assets

Abstract

This study aims to determine and test differences in companies' financial performance before and after the revaluation of fixed assets empirically. The data obtained were analyzed using the t-test analysis technique for two related samples (paired-sample t-test). The conclusion of the research results is first, there is no difference in the Debt-to-Equity Ratio, Fixed Assets to Net Worth, and Return on Investment after the implementation of fixed asset revaluation. Before implementing fixed asset revaluation. Second, there is no difference in the company's financial performance before implementing fixed asset revaluation and after the revaluation implementation. These results indicate that while there is an increase in assets' value, the financial performance is not affected. Therefore, the policy for fixed assets revaluation must be implemented carefully. The company must make a strategic decision accompanying the policy so that the assets' revaluation will increase financial performance.