Kinerja Keuangan Perusahaan Kakao Selama Pandemi Covid-19: Sebuah Pendekatan Economic Value Added (EVA)

Abstract

The Covid-19 pandemic brings around a multidimensional crisis that sway the world’s economy and believed to affect the performance of any industry. Cocoa processing industry, which is well known greatly contributes to Indonesia’s economy, is one of industry that is suspected has a significant effect to the performance of Indonesia’s economy. As one of export commodity, during the pandemic (2019-2020) the cocoa processing industry contributed for about USD 548 million to total Indonesia’s foreign exchange. This lead to a question: does the increase implies that the cocoa processing industry has a good financial performance? Therefore, this study aims to evaluate the financial performance of two cocoa processing company before and during Covid-19 pandemic by occupying the financial report of PT Bumi Teknokultura Unggul TBK and PT Wahana Interfood Nusantara from 2018 till 2020. The Economic Value Added approach was used to evaluate the financial performance of both company. The result of Economic Value Added (EVA) Analysis confirmed that this pandemic seem affecting the financial performance of the two company, which is both company’s performance tend to decrease. Yet, a different performance between the two was depicted as well by EVA, in which the EVA of PT Wahana Interfood Nusantara is positive while the PT Bumi Teknokultura Unggul Tbk’s is negative. This implies that PT Wahana Interfood Nusantara has a better financial performance than PT Bumi Teknokultura Unggul Tbk.

Analysis of the Composition of Capital Structure by Using Economic Value Added (Eva) Approach in TFD a Company

“…The EVA value of TFD A Company showed negative value since the period before Covid-19 pandemic and worsened when Covid-19 happened. This was in line with the findings of Devi et al ( 2020), Wulandari & Patrisia (2020), Kubiczek &Derej (2021), andTahu &Yuesti (2021) in Aviny (2022) which had proven that during Covid-19 pandemic, there was a decline in performance in several service sectors and processing industries. The EVA value of TFD A Company was recorded to increase in negative value but was still able to increase its net profit.…”

“…This is the reason why strategic decision making will be reflected in the results and analysis of the company's financial statements. According to Aviny (2022), a company's financial statements can provide information about the rate of return on investment and the implementation of the company's strategy and in its analysis requires a benchmark or comparison to assess the company's financial performance (Gitman, 2000in Aviny, 2022. In the form of decision making on capital and corporate funding, there are two main sources which are internal sources and external sources (Hashemi Tilehnouei & Shivaraj, 2014).…”

“…The Economic Value Added (EVA) approach which is a measure of economic performance to help evaluate a company's operational performance. According to Brigham & Ehrhardt (2007) in Aviny (2022), the focus of EVA is on managerial effectiveness in certain years which helps evaluate the remaining income after all capital costs are taken into account, including its equity capital, so that it can show an estimate of the real economic profit in that year, with its ultimate goal being maximizing the company value. Salaga, Bartosova & Kicova in Malichova et al (2017) and Ross (2021) stated that EVA is a sophisticated instrument in measuring business performance compared to the rest of the evaluation criteria.…”

“…3. Aviny (2022) in "The financial performance of cocoa companies during the covid-19 pandemic: An Economic Value Added (EVA) approach" says that research with the EVA approach should add a time span of analysis to ensure there are differences in financial performance between before and during the pandemic.…”