Proceedings of the 2nd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2022, 16 April 2022, Semarang, Indonesia

Research Article

Analysis Of Competitive Strategy and Financial Performance on Profitability and Company Value in Textile Companies Listed on IDX for the 2016 – 2020 Period

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  • @INPROCEEDINGS{10.4108/eai.16-4-2022.2319719,
        author={Usmansyah  Usmansyah and Rudy  Bratamanggala and Pudji  Astuty and Meirinaldi  Meirinaldi},
        title={Analysis Of Competitive Strategy and Financial Performance on Profitability and Company Value in Textile Companies Listed on IDX for the 2016 -- 2020 Period},
        proceedings={Proceedings of the 2nd International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2022, 16 April 2022, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICLSSEE},
        year={2022},
        month={8},
        keywords={textile industry; financial performance; competitive strategy},
        doi={10.4108/eai.16-4-2022.2319719}
    }
    
  • Usmansyah Usmansyah
    Rudy Bratamanggala
    Pudji Astuty
    Meirinaldi Meirinaldi
    Year: 2022
    Analysis Of Competitive Strategy and Financial Performance on Profitability and Company Value in Textile Companies Listed on IDX for the 2016 – 2020 Period
    ICLSSEE
    EAI
    DOI: 10.4108/eai.16-4-2022.2319719
Usmansyah Usmansyah1,*, Rudy Bratamanggala1, Pudji Astuty1, Meirinaldi Meirinaldi1
  • 1: Universitas Borobudur
*Contact email: usman_syah@yahoo.com

Abstract

The textile and garment sector is currently experiencing a crisis. Many workers were laid off by the company. To deal with these problems, management needs to determine the right strategy so that companies can improve financial performance and increase company value. It is hoping a prove that company's financial performance is indicated by the profitability variable which is influenced by liquidity, solvency and company activities. These variables influence each other in management's efforts to improve financial performance. Profitability seen from the Net Profit Margin indicator shows the level of company performance. Indicator liquidity is shown by the current ratio, and indicator of solvability is shown by the debt-to-equity ratio indicator and the company's activities are indicated by the total asset turn over indicator which together or individually affects the company's profitability. In addition, this study also proves that Competitive Strategy can be measured by applying low cost, differentiation and niche strategies and affects financial performance and firm value.