Economic Value Added and Financial Ratio Analysis Implementation on Tobacco Company

Abstract

The purpose of this study was to determine the company's financial performance appraisal using financial ratio and the conce of Economic Value Added (EVA). The method used is descriive quantitative approach. Object of this research is Djarum Ltd and HM Sampoerna Ltd which is listed in Indonesia Stock Exchange. Of all financial ratio analysis can be concluded that use of financial ratios HM Sampoerna Ltd able to manage assets and capital to increase sales and profit better than Djarum Ltd, but in the ability of debt financing, Djarum Ltd better able to manage assets and capital to meet debt obligations better than HM Sampoerna Ltd. The financial performance of Djarum Ltd and HM Sampoerna Ltd 2015-2016 period is measured from the calculation of EVA is increased in each year in the three-year study period. EVA high value will attract investors, because the greater value, the higher EVA of the company's value, which means the greater advantage enjoyed by the company. This indicates that the company is able to create economic  value for  the company and  be  able to  meet  the  expectations of shareholders and investors.

Keywords: financial performance, liquidity, leverage, profitability, activity, EVA