Comparative Analysis of Financial Performance Using the Economic Value Added (EVA) Approach in Banking Listed on the Indonesian Stock Exchange

Abstract

Banking is a financial institution that carries out intermediary activities between people who own funds and people who need funds. Because of these activities, ongoing supervision is needed to avoid any party being harmed. One way to assess banking performance is to compare the financial ratios of one period with other methods. The aim of this research is to determine and analyze comparative financial ratios using liquidity ratios, solvency ratios, profitability ratios and economic value added (EVA) as a means of measuring financial performance in banks listed on the Indonesia Stock Exchange. The research method used is descriptive analysis with the data used is secondary data in the form of financial reports for the 2018 period. The results show that there is no difference between financial ratios in the form of Liquidity ratios, Solvency ratios and Profitability ratios with Economic Value Added (EVA) as a tool for assessing banking financial performance.