ANALYSIS OF PROFITABILITY RATIOS TO ASSESS THE FINANCIAL PERFORMANCE OF COMPANIES LISTED ON THE IDX SHARIA GROWTH (IDXSHAGROW)

Abstract

This study aims to analyze the financial performance of companies listed on the IDX Sharia Growth index for the 2022–2024 period based on profitability ratios, including Net Profit Margin (NPM), Return on Equity (ROE), Return on Assets (ROA), and Economic Value Added (EVA). This study employs a descriptive quantitative approach using secondary data in the form of annual financial reports obtained from the Indonesia Stock Exchange. The sampling technique utilized purposive sampling, resulting in seven companies selected as the research subjects: AKRA, HEAL, ISAT, KLBF, MAPI, PWON, and TLKM. The results indicate that most companies have not yet met the industry profitability standards as defined by Kasmir (2016). Only PWON and TLKM exceeded the 20% NPM threshold, while no company achieved the 30% ROA or 40% ROE standards. Nevertheless, all companies generally recorded positive EVA values, indicating that they are capable of creating economic value for shareholders. Thus, the companies included in the IDX Sharia Growth index possess the ability to generate economic value, although the profitability levels they achieve still vary and tend to fall below industry standards.