Accounting Journal, Financial Performance

Evaluation on Textile and Garment Company

(PT Eratex Djaja Tbk and PT Argo Pantes)
Agung Sri Utami, S.Ikom., Tri Septia Rakhmawati, S.E.

Financial Performance Evaluation on Textile and Garment Company

(PT. Eratex Djaja Tbk and PT. Argo Pantes)

Agung Sri Utami, S.Ikom., Tri Septia Rakhmawati, S.E

GM 8
School of Business and Management, Institut Teknologi Bandung, Jakarta
Email : tri_rakhmawati@sbm-itb.ac.id, agung_utami@sbm-itb.ac.id

Abstract

I. INTRODUCTION
Indonesia’s domestic Indonesia’s domestic textile and garment industry has a remarkable growth in
2017 and continue to grow positive development in export and domestic demand through 2018. The
textile and garment industry is one of the major export contributors sectors. The industry recorded USD
12.59 billion or 10.1 percent of total manufacturing exports in 2017. The textile industry also
contributed 1.07 percent of GDP (gross domestic product) and recorded an investment value of 10.19
trillion rupiah in 2017.

II. TEXTILE AND GARMENT INDUSTRY IN INDONESIA

Compared to other developing countries, Indonesia has ----------

III. PREVIOUS RESEARCH ON FINANCIAL PERFORMANCE

The evaluation on financial performance using financial ratio is a solution to overcome this problem.
This financial method is able to combine many aspects of financial information from a financial report
of a company (Burkhardt and Wheeler, 2013). Company always uses this method to compare their
performance with their competitors. Generally, performance evaluation of the firms is conducted within
the context of financial analysis. As the financial performance has a broad concept, including economic
growth, return, and productivity, using the financial ratios in the performance assessment can be
appropriate for companies and their counterparts. However, the linguistic evaluation of firm activities
has been increasingly important for the overall evaluation of financial performance due to the loss of
informative value of financial indicators (Beaver et al., 2005).

IV. METHODOLOGY

However, the linguistic evaluation of firm activities has been increasingly important for the
overall evaluation of financial performance due to the loss of informative value of financial
indicators (Beaver et al., 2005)
 Accounting Journal, Financial Performance
Evaluation on Textile and Garment Company
(PT Eratex Djaja Tbk and PT Argo Pantes)
Agung Sri Utami, S.Ikom., Tri Septia Rakhmawati, S.E.
Due to the tight competition in the industry, each cement company must perform as best as they can in order to retain, or even
increase its market share. One way to analyze the performance of a company is by analyzing its financial performance, through
the data of its annual financial statement.