UNIBIUNIBI

Economics Professional in Action (E-Profit)Economics Professional in Action (E-Profit)

This study aims to analyze the financial performance of main board companies in the basic materials sector listed on the Indonesia Stock Exchange during the 2020–2024 period using the Return on Assets (ROA) ratio. The research employs a descriptive quantitative method utilizing secondary data obtained from companies financial statements. The analysis technique involves calculating and comparing ROA values across companies and examining performance trends over the observation period. The results indicate that financial performance tends to fluctuate. The industrys average ROA increased from 2020 and peaked in 2022, reflecting economic recovery following the COVID-19 pandemic. However, a decline occurred in 2023 before improving again in 2024. At the firm level, some companies such as INTP demonstrated stable performance, while others like ANTM and TINS showed significant volatility due to commodity price fluctuations. In conclusion, the basic materials sector has strong profitability potential but is accompanied by relatively high risk due to its sensitivity to global economic conditions. Therefore, companies are expected to improve asset management efficiency, while investors should consider performance stability when making investment decisions.

The analysis reveals that the financial performance of basic materials sector companies on the IDX during 2020–2024 exhibits fluctuating patterns influenced by macroeconomic conditions and commodity price dynamics.The industry average peaked in 2022 due to post-pandemic economic recovery, but declined in 2023 before improving in 2024, highlighting the sectors sensitivity to global changes.Companies with stable ROA demonstrate efficient asset management, while those with volatility are more susceptible to external risks, necessitating improved asset utilization and risk management strategies.

Future research should investigate the impact of capital structure, liquidity, and macroeconomic factors like inflation and exchange rates on the financial performance of basic materials companies to provide a more holistic understanding. Furthermore, exploring the role of operational efficiency metrics, such as cost management and production capacity utilization, could reveal strategies for enhancing profitability and resilience. Finally, a comparative analysis of companies with varying levels of commodity price exposure could identify best practices for mitigating risk and stabilizing performance in volatile market conditions, contributing to more informed investment decisions and sustainable growth within the sector. These studies should employ advanced analytical techniques like panel data regression to establish causal relationships and provide actionable insights for both companies and investors, ultimately fostering a more robust and adaptable basic materials industry in Indonesia.

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