Financial factors that increase profitability and efficiency in PT. Adira Finance tbk. Study case 2004 until 2009
The purpose of this thesis is to analyze financial factors that influenced the increasing profitability and efficiency of PT. Adira Dinamika Finance Tbk Indonesia during the years 2004 to 2009. The level of profitability and efficiency is measured by the Return on Equity (ROE) and the Return on Assets (ROA) by looking at the influential financial factors of the ROE and ROA itself, profit margin and asset turnover and the leverage. The thesis found out that the high or low level of profit margin does not have a significant affect towards the company?s efficiency. The most influential aspect in profitability is its leverage which explains that this company set relatively low interest rates, and the most influential factor of efficiency is asset turnover. Asset turnover, where net income over total asset, represent a company?s ability to manage their asset to maximize sales. The thesis discovered that PT. Adira Dinamika Finance Tbk has been successful in managing its ROA during the studied years. In addition, this thesis will analyze the relation of sales towards the growth of its performing loans. In the direction of, distinguishing how PT. Adira Dinamika Finance Tbk manages its level of Non-performing loan.
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