Research Paper
Year: 2020 | Month: January | Volume: 7 | Issue: 1 | Pages: 480-485
Relationship of Economic Value Added (EVA) and Financial Performance of PT. LC Industry Indonesia Period 2013-2017
Nani Agustina1, Isfenti Sadalia2, Amlys Syahputra Silalahi2
1Postgraduate Students at Universitas Sumatera Utara, Indonesia
2Postgraduate Lecturer at Universitas Sumatera Utara, Indonesia
Corresponding Author: Nani Agustina
ABSTRACT
PT. LC Industry Indonesia aims to collect wood raw materials needed by the furniture industry directly from its source. Considering that raw materials in the wood furniture industry play an important role in running their business, so investment is needed that can support the raw materials, which is certain to always be available. Conditions for the availability of raw materials which are natural products and their availability depend on nature, so many things need to be considered in processing them. Some things that are of concern to PT. LC Industry Indonesia in collecting wood raw materials, namely source, location, purchase price, competitors, selling price, and company capacity. The purpose of this study is to know the relationship of economic value added (EVA) and financial performance of PT. LC Industry Indonesia period 2013-2017. This research used correlation analysis is a statistical method used to find out and measure the relationship between two variables. Correlation is also a term that can describe the linear relationship between the dependent variable and the independent variable. The results showed Economic value added (EVA) was not significantly negative related to return on assets (ROA). Economic value added (EVA) is significantly negative related to current ratio (CR). Economic value added (EVA) is positively related significantly to debt equity ratio (DER). Economic value added (EVA) is not positively related to total assets turnover ratio (TATO).
Keywords: Economic Value Added (EVA), Return on Assets (ROA), Current Ratio (CR), Debt Equity Ratio (DER), Total Assets Turnover Ratio (TATO)
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