e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409
ISSN Cetak : 2337-3997
ISSN Online : 2613-9774
COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE USING
THE ECONOMIC VALUE ADDED (EVA) AND MARKET VALUE ADDED
(MVA) METHODS IN THE RESTAURANT.
HOTEL.
AND TOURISM
SUBSECTOR FOR THE YEARS 2018-2022
Kenia Khoirunnisa1.
Arisyahidin2.
Nisa Mutiara3
1,2,3
Program Studi Magister Manajemen Universitas Islam Kadiri Email : ken.
khoirunnisa66@gmail.
ABSTRACT
This research aims to determine the companyAos financial performance as assessed using the Economic Value Added (EVA) and Market Value Added (MVA) methods.
The sampling technique in this research was nonprobability sampling with purposive sampling.
The sample of this research is company financial report by taking annual data from 6 companies in the restaurant, hotel and tourism subsectors.
This research consists of three discussions starting of assessing financial performance using the Economic Value Added (EVA) method, assessing financial performance using the Market Value Added (MVA), and assessing the average results of Economic Value Added (EVA) and Market Value Added (MVA) from 6 companies in the sample with a research period 5 yearss from 2018-2022.
The Economic Value Added (EVA) results from 2018-2022 from the 6 companies sampled in the research show that the average Economic Value Added (EVA) results show negative results, while the Market Value Added (MVA) results from 2018-2022 from the 6 companies sampled in the research showed that the average Market Value Added (MVA) results showed positive results.
Keywords : Financial Performance.
Economic Value Added.
Market Value Added
INTRODUCTION
The hospitality industry is closely related to the tourism sector and serves as a support for its Most hospitality businesses typically include other ventures such as restaurants, travel agencies, etc.
Hospitality becomes essential for everyone during the holiday season or when visiting areas outside their domicile.
The world was shocked by the emergence of a disease known as Coronavirus Disease 2019, or Covid-19.
The Covid-19 virus, which spreads globally and rapidly, began to affect the entire world, including Indonesia.
The outbreak of this virus had a significant impact on society, including disrupting daily activities.
Given the widespread identification of Covid cases, the Indonesian government issued Government Regulation (PP) No.
21 of 2020 on Large-Scale Social Restrictions (PSBB), and the Minister of Health also issued Minister of Health Regulation No.
9 of 2020 on the Guidelines for Large-Scale Social Restrictions in the Framework of Accelerating the Handling of Coronavirus Disease 2019.
Article of the Minister of Health Regulation No.
9 of 2020 stated that the implementation of PSBB includes the closure of workplaces and schools, restrictions on religious activities, transportation restrictions, and more (Kementerian Kesehatan, 2.
A survey conducted by the Central Statistics Agency (BPS) and the Ministry of Tourism and Creative Economy (Kemenparekra.
showed that the Occupancy Rate (OR) from 2018-2020 experienced a drastic decline starting in April One of the causes of this decline was the PSBB regulation, which resulted in restricted tourist traffic.
The rapid spread of Covid-19 also had a detrimental impact on the national and international economic landscape (Junaidi & Nasution, 2.
Since the enactment of PSBB, many businesses have been affected, including declines in the hospitality, restaurant, and tourism industries, which in turn decreased the revenue from these businesses.
This situation undoubtedly affected the financial performance of companies.
Measuring financial performance can serve as a basis for analysis and decision-making.
Financial performance measurement is a strategy to formulate financial policies to ensure companies can maintain their existence.
In general, the goal of a company is to achieve optimal profits or maximize profits while ensuring its sustainability.
Maximizing profit is undoubtedly the main target of companies, starting with e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409 short-term profit and then maximizing value in the long term (Hartono, 2.
Financial performance is also a form of accountability from management to the company's owners.
Company management can communicate with internal and external parties through information, which is conveyed in the financial reports.
Achieving the company's goals to increase value depends on its performance, one aspect of which is financial.
Financial performance is an achievement that a company has reached over a specific period, which can be seen in the company's financial statements (Agustin.
Martini, & Riskiputri, 2.
Various methods are utilized in analyzing financial statements, one of which is using Economic Value Added (EVA) and Market Value Added (MVA).
Economic Value Added (EVA) is a financial performance measure that assesses the difference between net operating profit after taxes (NOPAT) and the cost of capital in a given period (Sunardi, 2.
Economic Value Added (EVA) in financial performance measurement can indicate whether management at a company has successfully created economic value-added.
Meanwhile.
Market Value Added (MVA) is the cumulative result obtained from a company's performance resulting from both past and future investments (Hayat, et al.
, 2.
ISSN Cetak : 2337-3997
ISSN Online : 2613-9774
RESEARCH METHODS
Types of Research The type of research in this study is quantitative research.
Quantitative research is a type of research that produces findings that can be achieved or obtained using statistical procedures or other quantification methods .
The quantitative method involves a process starting from collecting, analyzing, interpreting, and writing the results of the research conducted.
(Creswell, 2.
Sampling Techniques The sampling technique used in this study is Non-Probability Sampling.
Non-Probability Sampling is a sampling technique that does not give every element a chance to be chosen as a sample (Sugiyono, 2.
The type of NonProbability Sampling that will be utilized is Purposive Sampling, which is a technique for determining the sample based on specific considerations or criteria (Sujarweni, 2.
Population and Sample The population in this study consists of financial reports from companies in the restaurant, hotel, and tourism subsectors for the years 20182022.
The sample used in this study has several criteria, and only 6 companies from the restaurant, hotel, and tourism subsectors qualify as samples for this research, with annual data taken from 2018-2022, resulting in 30 samples.
The list of companies that are included in the sample is as Table 1 Sample List of Restaurant.
Hotel and Tourism Subsector Name Code 1 PT.
MAP Boga Adiperkasa Tbk MAPB 2 PT.
Fast Food Indonesia Tbk FAST PT.
Hotel Sahid Jaya International SHID Tbk 4 PT.
Arthavest Tbk ARTA 5 PT.
Red Planet Indonesia Tbk PSKT 6 PT.
Indonesia Paradise Property Tbk INPP Source : Data processed, 2023 Data Analysis Techniques The data analysis technique in this study uses the Economic Value Added (EVA) and Market Value Added (MVA) methods.
The formulas for EVA and MVA are as follows:
e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409
Methode EVA
MVA
ISSN Cetak : 2337-3997
ISSN Online : 2613-9774
Table 2
Data Analysis Techniques EVA & MVA Methods Stages Formula
NOPAT
Laba (Rug.
usaha sebelum pajak Ae Pajak Invested Capital (IC) (Total Hutang Ekuita.
Ae Hutang Jangka Pendek
WACC
{(D x r.
-Ta.
(E x r.
} Capital Charge (CC) WACC x Invested Capital (IC) EVA NOPAT Ae Capital Charge (CC) (Jumlah Saham Beredar x Harga Saha.
Ae Total Ekuitas Source : Data processed, 2023 Results and Discussion Economic Value Added (EVA) Economic Value Added (EVA) was developed in 1933 by financial analysts Stewart and Stern from the firm Stern Stewart & Co.
Economic Value Added (EVA) is the operating profit after tax minus the cost of capital.
Here, the cost of capital includes both interest expenses and equity costs or own capital cost (Silvia & Wangka.
Economic Value Added (EVA) is a tool for measuring a company's ability to create value for investors through the profits generated (Rinaldo & Puspita, 2.
From the calculation of Economic Value Added (EVA), conclusions are drawn in three different categories:
f the EVA value > 0 or is positive, it indicates that the company has successfully created economic value added for the company.
If the EVA value = 0, it indicates that the company is at the break-even point, meaning there is no increase in value.
If the EVA value < 0 or is negative, it indicates that the company has not achieved economic value added for the company.
The steps for calculating Economic Value Added (EVA) start with:
NOPAT (Net Operating Profit After Ta.
NOPAT (Net Operating Profit After Ta.
is the company's operating profit after interest has been deducted for taxes and represents the profit earned by the company.
The results of the Net Operating Profit After Tax calculation for each company studied are as follows:
e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409
ISSN Cetak : 2337-3997
ISSN Online : 2613-9774
Table 3
Calculation of Net Operating After Tax (NOPAT) Code
Year
NOPAT
MAPB
FAST
SHID
ARTA
PSKT
INPP
Source : Data processed, 2023 Based on the table above, the highest NOPAT (Net Operating Profit After Ta.
value was achieved by PT.
Indonesia Paradise Property Tbk (INPP) in 2019, amounting to IDR 2,081,142,336,348, and the smallest was obtained by the same company but in 2020, amounting to IDR 537,076,342,158.
(Invested Capita.
Invested Capital (IC) is the sum of the overall financing of a company.
Invested Capital (IC) equals the result of the sum of debt and Below are the Invested Capital (IC) calculations for each company that is the subject of the research:
e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409
ISSN Cetak : 2337-3997
ISSN Online : 2613-9774
Table 4
Calculation of Invested Capital (IC) Code
Year
MAPB
FAST
SHID
ARTA
PSKT
INPP
Source : Data processed, 2023.
Based on the table above, the largest Invested Capital (IC) value was recorded by PT.
Indonesia Paradise Property Tbk (INPP) in 2022, amounting to 8,500,771,652,527, and the smallest was by PT.
MAP Boga Adiperkasa Tbk (MAPB) in 2018, amounting to 1,163,975.
WACC (Weight Average Cost of Capita.
WACC (Weighted Average Cost of Capita.
represents the cost of equity and the cost of debt, each multiplied by the percentage of equity and debt in the capital structure.
Below are the Weighted Average Cost of Capital (WACC) calculations for each company that is the subject of the research:
e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409
ISSN Cetak : 2337-3997
ISSN Online : 2613-9774
Table 5
Calculation of Weight Average Cost of Capital (WACC) Code
Year
WACC
MAPB
0,064
0,081
0,016
0,108
0,095
FAST
0,079
0,078
-0,065
-0,037
0,023
SHID
0,010
0,003
-0,029
-0,026
-0,015
ARTA
0,017
0,0017
-0,028
-0,029
-0,0004
PSKT
-0,018
-0,012
-0,051
-0,017
0,0006
INPP
0,042
0,281
-0,049
0,015
0,022
Source : Data processed, 2023.
Based on the table above, the highest Weighted Average Cost of Capital (WACC) value was achieved by PT.
Indonesia Paradise Property Tbk (INPP) in 2019, amounting to 0.
281 or 28.
and the lowest was by PT.
Fast Food Indonesia Tbk (FAST) in 2020, amounting to -0.
065 or 6.
CC (Capital Charg.
CC (Capital Charg.
is obtained by multiplying WACC with IC.
Capital Charge (CC) is the cash flow required to compensate investors for the business risk of the capital invested.
Below are the Capital Charge (CC) calculations for each of the six companies:
e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409
ISSN Cetak : 2337-3997
ISSN Online : 2613-9774
Table 6
Calculation of Capital Charge (CC) Code
Year
MAPB
FAST
SHID
ARTA
PSKT
INPP
Source : Data processed, 2023.
The highest Capital Charge (CC) value was recorded by PT.
Indonesia Paradise Property Tbk (INPP) in 2019, amounting to 2,145,214,410,193, and the lowest was also by PT.
Indonesia Paradise Property Tbk (INPP) in 2020, amounting to 365,218,592,410.
Economic Value Added (EVA) When a company has a positive Economic Value Added (EVA), it indicates that the company's management has successfully created additional value for the business.
Below are the final results from the overall stages of calculating Economic Value Added (EVA):
e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409
ISSN Cetak : 2337-3997
ISSN Online : 2613-9774
Table 7
Calculation of Economic Value Added (EVA) Kode
Tahun EVA
MAPB
FAST
SHID
ARTA
PSKT
INPP
Source : Data processed, 2023.
Based on the table above, the highest Economic Value Added (EVA) was achieved by PT.
Arthavest Tbk (ARTA) in 2018, amounting to 320,106,060, and the lowest was recorded by PT.
Indonesia Paradise Property Tbk (INPP) in 2021, with -165,348,321,384.
Financial performance provides an illustration of a company's ability to conduct its business activities from a financial perspective, such as the ability to generate profit and enhance company value.
In this research, financial performance is measured using Economic Value Added (EVA), which shows varied results.
some companies managed to achieve positive EVA values while others recorded negative values during the study period.
From the Economic Value Added (EVA) calculations, it is evident that only three companies managed to create positive EVA values in certain PT.
MAP Boga Adiperkasa Tbk (MAPB) achieved positive EVA values in 2018, 2019, and PT.
Fast Food Indonesia Tbk (FAST) had positive values in 2018 and 2019, and PT.
Arthavest Tbk (ARTA) in 2018.
Positive EVA results mean that these companies were able to generate value-added or efficient and effective financial performance, indicating that the return generated by the companies exceeded the capital cost expected by investors.
Negative EVA values were recorded by PT.
MAP Boga Adiperkasa Tbk (MAPB) in 2020 and 2021.
PT.
Fast Food Indonesia Tbk (FAST) in 2020 and 2021.
PT.
Hotel Sahid Jaya International Tbk (SHID) from 2018 to 2022.
PT.
Arthavest Tbk (ARTA) from 2019 to 2022, and PT.
Indonesia Paradise Property Tbk (INPP) from 2018 to 2022.
Negative EVA values can be attributed to the companies' inability to generate sufficient profits, affecting their Net Operating Profit After Tax (NOPAT), while inefficiencies in reducing capital costs also impact the Capital Charge (CC).
e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409 The assessment of Economic Value Added (EVA) is influenced by various factors, including the profits generated by the companies.
However, the financial results of the six companies sampled in this study indicated losses in 2020 and 2021, which were significantly impacted by the global pandemic.
COVID-19, and the implementation of Large-Scale Social Restrictions (PSBB).
These restrictions directly limited economic activities such as production processes, product distribution, travel plans, and decreased consumer purchasing power, all of which led to reduced business Market Value Added (MVA) Market Value Added (MVA) is a financial performance measurement tool that focuses on comparing a company's market value to its capital .
, where the company's market value is reflected in its stock price (Hartono, 2.
ISSN Cetak : 2337-3997 ISSN Online : 2613-9774 Market Value Added (MVA) is the difference between the market value of a company's equity and its book value as presented on the balance sheet, with the market value calculated by multiplying the stock price by the number of shares (Masyiyan & Isynuwardhana, 2.
The calculation of Market Value Added (MVA) leads to conclusions in three distinct categories (Kuncara & Agustina, 2.
A positive Market Value Added (MVA > .
indicates that management has succeeded in enhancing shareholder wealth.
A negative Market Value Added (MVA < .
indicates a decrease in shareholder value.
A Market Value Added of zero (MVA = .
indicates that the company has not added to its shareholders' wealth.
HereAos how to calculate Market Value Added (MVA):
Table 8
Calculation of Market Value Added (MVA) Code
MAPB
FAST
SHID
ARTA
PSKT
INPP
Year
MVA
Source : Data processed, 2023.
e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409 Based on the table above, the highest Market Value Added (MVA) was achieved by PT.
Fast Food Indonesia Tbk (FAST) in 2020, amounting to 4,348,035,739,846, and the lowest was recorded by PT.
Indonesia Paradise Property Tbk (INPP) in 2022, with -752,730,570,292.
Market Value Added (MVA) is a financial performance measurement tool used to assess whether a company has successfully created wealth for its owners, reflecting shareholders' expectations of the company's future wealth creation.
From the calculation of Market Value Added (MVA) for the six companies sampled, it was found that only two companies generated negative MVA values: PT.
Arthavest Tbk (ARTA) in 2019 and 2020, and PT.
Indonesia Paradise Property Tbk (INPP) in 2022.
Positive MVA values were achieved by PT.
MAP
Boga Adiperkasa Tbk (MAPB).
PT.
Fast Food Indonesia Tbk (FAST).
PT.
Hotel Sahid Jaya International Tbk (SHID), and PT.
Red Planet Indonesia Tbk (PSKT) throughout the same period, 2018-2022, while PT.
Arthavest Tbk (ARTA) only generated positive MVA values in 2018, 2021, and Meanwhile.
PT.
Indonesia Paradise Property ISSN Cetak : 2337-3997 ISSN Online : 2613-9774 Tbk (INPP) generated positive values from 20182021.
A positive Market Value Added (MVA) indicates that the company has successfully increased the capital invested by its financiers, meaning that the market value of the company is greater than its equity value.
The creation of positive MVA values is typically due to stock price stability or increases during certain periods.
Conversely, a negative MVA suggests that the company's financial performance is poor, or in other words, the company has not been able to create adequate value for its shareholders.
Comparison of Average Economic Value Added (EVA) and Market Value Added
(MVA)
To proceed with calculating the average Economic Value Added (EVA) and Market Value Added (MVA) values for the six companies each year over the five-year research period, please provide the specific EVA and MVA values for each company for each of the five years.
Once I have the data.
I can help compute the averages Table 9 The Average Result of Economic Value Added (EVA) Year Avarge EVA Source : Data processed, 2023.
The results of the Economic Value Added (EVA) calculations from 2018 to 2022 for the six companies in your study reveal that the average EVA outcome was generally negative, particularly significant in years like 2020 and 2022.
For instance, the average EVA in 2020 was 23,513,411,817, and in 2022 it was 23,102,334,403.
The negative EVA results were largely due to many companies incurring losses, especially in 2020, which was heavily impacted by the COVID-19 pandemic.
During that year, significant societal changes occurred, affecting businesses profoundlyAiranging from disrupted supply chains to changes in consumer behavior, all of which adversely influenced corporate profitability and, consequently, their Economic Value Added.
e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409 ISSN Cetak : 2337-3997 ISSN Online : 2613-9774 Table 10 The Average Result of Market Value Added (MVA) Tahun Rata-rata MVA Source : Data processed, 2023.
The findings from the Market Value Added (MVA) analysis from 2018 to 2022 for the six companies sampled in your research suggest that the average MVA outcomes were predominantly For instance, in 2018, the average MVA was 2,201,468,939,293, and in 2021, it was 1,647,826,027,135.
These positive MVA results indicate that despite fluctuations in company profits, there was no significant impact on stock This suggests that the market might have perceived other value-adding factors beyond just current earnings, such as potential for future growth, strategic decisions, and market conditions, which maintained or increased the shareholders' perceived value in the companies' stocks.
This resilience in stock prices amidst varying profit levels underscores the investors' confidence in the strategic management and future prospects of these companies, keeping their market valuations CONCLUSION Based on the discussion and research results on the comparative analysis of financial performance using the Economic Value Added (EVA) and Market Value Added (MVA) methods for companies in the restaurant, hotel, and tourism subsectors from 2018 to 2022, the following conclusions were reached:
The financial performance of companies in the restaurant, hotel, and tourism subsector, evaluated using Economic Value Added (EVA), shows that not all companies were able to create positive value.
Companies that managed to create positive value include PT.
MAP Boga Adiperkasa Tbk (MAPB) in the years 2018, 2019, and 2022.
PT.
Fast Food Indonesia Tbk (FAST) in 2018 and 2019, and PT.
Arthavest Tbk (ARTA) in 2018 and 2019.
Conversely, companies that produced negative values include PT.
MAP Boga Adiperkasa Tbk (MAPB) in 2020 and 2021.
PT.
Fast Food Indonesia Tbk (FAST) from 2020 to 2022.
PT.
Hotel Sahid Jaya International Tbk (SHID) from 2018 to 2022.
PT.
Arthavest Tbk (ARTA) from 2020 to 2022.
PT.
Red Planet Indonesia Tbk (PSKT) and PT.
Indonesia Paradise Property Tbk (INPP) from 2018 to The financial performance of companies in the restaurant, hotel, and tourism subsector, evaluated using Market Value Added (MVA), shows that some companies managed to create positive value.
Companies that achieved this include PT.
MAP Boga Adiperkasa Tbk (MAPB).
PT.
Fast Food Indonesia Tbk (FAST).
PT.
Hotel Sahid Jaya International Tbk (SHID).
PT.
Red Planet Indonesia Tbk (PSKT) throughout 2018-2022.
PT.
Arthavest Tbk (ARTA) in 2018, 2021, and 2022, and PT.
Indonesia Paradise Property Tbk (INPP) from 2018 to 2021.
Companies that generated negative values include PT.
Arthavest Tbk (ARTA) in 2019 and 2020, and PT.
Indonesia Paradise Property Tbk (INPP) in 2022.
The calculation of Economic Value Added (EVA) and Market Value Added (MVA) for 30 research samples shows that the average Economic Value Added (EVA) in 2018 was 27,237,638,154, in 2019 it was 15,015,859,072, in 2020 it was 23,513,411,817, in 2021 it was 29,974,838,739, and in 2022 it was 23,102,334,403.
The average Economic Value Added (EVA) results varied annually .
but remained negative overall, whereas the average Market Value Added (MVA) also varied annually .
but stayed positive, with the average Market Value Added
(MVA)
2,201,468,939,293,
2,024,386,283,751,
1,932,910,429,982,
e-Jurnal Apresiasi Ekonomi Volume 12.
Nomor 2.
Mei 2024: 398-409
1,647,826,027,135,
1,602,677,828,225.
BIBLIOGRAPHY