Analysis Method Economic Value Added of Cosmetics Companies Listed on Indonesia Stock Exchange

DOI

10.2991/assehr.k.200407.017How to use a DOI?

Keywords

financial performance, economic value added (EVA)

Abstract

Analysis using the EVA method can be used as an assessment of company performance that focuses on creating value and identifying an investment that maximizes returns and minimizes capital costs. This study aims to analyze the company’s financial performance using the economic value added (EVA) method, using secondary data cosmetic companies listed on the Indonesia Stock Exchange, including PT Martina Berto Tbk, PT Mustika Ratu Tbk, and PT Unilever Indonesia Tbk during 2013-2017 period. Data analysis starts from the calculation of Net Profit Operating After Tax (NOPAT), Invested Capital, Weight Average Cost of Capital, Cost of Capital and finally, calculates the value of EVA. The results of the research show that PT Unilever Indonesia Tbk produced positive EVA values affected by capital cost smaller than the NOPAT value. The other two companies, PT Martina Berto Tbk and PT Mustika Ratu Tbk produce negative EVA values affected by capital cost greater than the NOPAT value. EVA can reflect in real the company’s ability to provide economic value-added value to the company and its shareholders, moreover the investors can choose investments that can maximize the capital they have invested. A positive EVA value of PT Unilever Indonesia Tbk can attract many investors to buy the company’s shares and strengthen the image of the company. This research also provides some input as suggestions for the management of the company to more attention to the policy to create value-added and improving the company’s financial performances for the next period.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Lailita Alhamdari
AU  - Marieska Lupikawaty
AU  - Jusmawi Bustan
PY  - 2020
DA  - 2020/04/10
TI  - Analysis Method Economic Value Added of Cosmetics Companies Listed on Indonesia Stock Exchange
BT  - Proceedings of the 3rd Forum in Research, Science, and Technology (FIRST 2019)
PB  - Atlantis Press
SP  - 96
EP  - 100
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200407.017
DO  - 10.2991/assehr.k.200407.017
ID  - Alhamdari2020
ER  -