Financial Performance Analysis of Mining Company PT. Vale Indonesia Tbk. Using the Economic Value Added (EVA) Method for the 2019-2022 Period

Authors

  • Yogi Adnal Fathirullah Pole Faculty of Economic and Business, Makassar State University
  • Tenri SP Dipoatmodjo Faculty of Economic and Business, Makassar State University
  • Nurman Nurman Faculty of Economic and Business, Makassar State University
  • Siti Hasbiah Faculty of Economic and Business, Makassar State University
  • Annisa Paramaswary Aslam Faculty of Economic and Business, Makassar State University

DOI:

https://doi.org/10.59653/jbmed.v2i01.327

Keywords:

Economic Value Added, Financial Performance, Analysis, EVA, method

Abstract

This study aims to analyze and assess the financial performance of PT Vale Indonesia using the Economic Value Added (EVA) approach during the 2019-2022 period. The type of research used is quantitative using descriptive data. The population in this study is the financial statements of the mining company PT Vale Indonesia Tbk. for the last 4 years, namely 2019-2022. The sample of this study is the statement of financial position and comprehensive income. The data collection technique used is documentation. The data analysis technique used is Economic Value Added (EVA) analysis which consists of NOPAT, Invested Capital, WACC, and Capital Charges. The results of this study indicate that the value of Economic Value Added (EVA) at PT Vale Indonesia Tbk. period 2019-2022 is always positive (EVA> 0) so that it can be said that management is able to create economic added value for the company. The results of the analysis using the Economic Value Added (EVA) method to measure the financial performance of the mining company PT Vale Indonesia Tbk. period 2019-2022, showed that during 2019 to 2022 it was always positive (EVA> 0). Based on this, it can be said that management is able to create economic added value for the company, investors or capitalists get more investment returns than invested and creditors can get interest, this situation shows that the company has succeeded in creating value for capital owners so that it indicates good financial performance.

Downloads

Download data is not yet available.

References

Agnes Sawir. 2005. Financial Performance Analysis and Financial Planning. Jakarta: PT Gramedia Pustaka Utama.

Anshory, M., & Fitriana, AV (2018). Economic Value Added Approach to Measuring. INSANI BINA STUDENT JOURNAL, Vol. 3, no. 1, 35-44.

Anshory, M., & Fitriana, AV (2018). Economic Value Added Approach to Measuring Company Financial Performance. INSANI DEVELOPMENT STUDENTS JOURNAL, 3(1), 35-44.

Asra, Abuzar, et al. 2017. Multivariable Analysis An introduction. Bogor: In Media.

Awaliya, YR (2021). The Effect of Financial Performance Based on the EVA Method at PT. Vale Indonesia (Doctoral dissertation, Muhammadiyah University of Palopo).

Brigham, F. Eugene and Joel F. Houston. 2013. Basics of Financial Management. Jakarta: Salemba Empat.

Devi, RA (2014). Comparison between Economic Value Added (EVA) and Return on Assets (ROA) in assessing financial performance. Thesis. Faculty of Economics and Business. Muhammadiyah Surakarta university.

Dwihandoko, Toto Heru. “Economic Value Added (EVA) Method as an Alternative for Measuring Company Performance at PT. The Main Image of Barokah.” Economic Magazine 22, no. 2 (2017): 282–91.

Fahmi, Irham. (2012). Financial Performance Analysis. Bandung: Alphabeta.

Fahmi, Irham. (2014). Financial Report Analysis. Second printing. Bandung: Alphabeta.

Fitra, H., Agustin, H., Taqwa, S., & Mulyani, E. (2019). Analysis of the Financial Performance of Mining Sector Companies Listed in the Jakarta Islamic Index Using Economic Value Added. Accounting Research Forum, 7(2), 1493-1504.

Indonesian Accountants Association. 2015. Statement of Financial Accounting Standards. Jakarta: Indonesian Accountants Association.

J. Fred Weston, Eugene (2012). Basics of Financial Management. Seventh edition. Ertangga Publishers. Jakarta: Rajawali Press.

Kasmir, (2013). Financial Report Analysis. Jakarta : PT. RajaGrafindo Persada

Mulyadi. (2016). Accounting information system. Jakarta: Salemba Empat.

Munawir, S, (2012). Analysis of financial statements. Yogyakarta: Liberty Yogyakarta

Munawir, S. (2016). "Financial Information Analysis". Yogyakarta : Liberty

Natalia Daud Songli, CP (2013). Financial Performance Analysis Based on the EVA Approach at PT. Vale Indonesia Tbk. Thesis. Faculty of Economics and Business. Hasanuddin University.

Prastika, Y. (2023). Assessment of Company Financial Performance Using the Economic Value Added (EVA) Method at the Company PT Merdeka Copper Gold Tbk for the 2019-2021 Period (Doctoral dissertation, Muhammadiyah University of Surakarta).

Prastowo, Dwi. 2015. Financial Report Analysis Concepts and Applications, Third Edition. Yogyakarta. UPP STIM YKPN.

Rauf, R.N. (2015). Analysis of Company Financial Performance Using Economic Value Added (EVA) and Market Value Added (MVA). Thesis. Faculty of Economics and Business. Brawijaya University.

Riandani, I. 2020. Financial Performance Analysis of PT. Vale Indonesia Tbk. In the Jakarta Islamic Index (JII) Based on the Economic Value Added (EVA) Method for the 2014-2018 Period. Thesis. Faculty of Islamic Economics and Business. IAIN Manado.

Sawir, Agnes. 2009. Financial Performance Analysis and Corporate Financial Planning. Jakarta: Gramedia Pustaka Utama.

Sofyan Syafri. 2016. Critical Analysis of Financial Reports. Jakarta: PT Raja Grafindo Persada.

Sugiyono (2013). Quantitative Qualitative and R&B Research Methods. Bandung: Alphabeta.

Downloads

Published

2023-10-29

How to Cite

Pole, Y. A. F., Dipoatmodjo, T. S., Nurman, N., Hasbiah, S., & Aslam, A. P. (2023). Financial Performance Analysis of Mining Company PT. Vale Indonesia Tbk. Using the Economic Value Added (EVA) Method for the 2019-2022 Period. Journal of Business Management and Economic Development, 2(01), 88–97. https://doi.org/10.59653/jbmed.v2i01.327

Issue

Vol. 2 No. 01 (2024): January 2024

Section

Articles

License

Copyright (c) 2023 Yogi Adnal Fathirullah Pole, Tenri SP Dipoatmodjo, Nurman Nurman, Siti Hasbiah, Annisa Paramaswary Aslam

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

Most read articles by the same author(s)