COMPARATIVE ANALYSIS OF FINANCIAL RATIO AND ECONOMIC VALUE-ADDED METHODS TO ASSESS COMPANY FINANCIAL PERFORMANCE

Abstract

The assessment of a company's financial performance is generally carried out through financial reports with analysis methods such as Financial Ratios and Economic Value Added (EVA). Financial ratio analysis helps to compare financial conditions and performance accurately, while the EVA method assesses the efficiency of a company's capital use by including equity elements. This study aims to analyze the financial performance of PT Sumber Alfaria Trijaya Tbk and PT Indofood Sukses Makmur Tbk listed on the Indonesia Stock Exchange (IDX) during the 2019–2020 period, using secondary data from financial reports. The results of the analysis show that both companies have good liquidity and profitability ratios, as well as positive EVA values. This indicates that the EVA method can support financial ratio analysis because both reflect economic added value. Thus, the combination of these two methods can be a consideration for management in managing the company's capital.