Analyzing Islamic Micro Finance Performance with Economic Value Added (EVA): Learning from Baitul Wat Tamwil (BMT) Usaha Gabungan Terpadu Sidogiri Indonesia

Titik Inayati, Bambang Subroto, Achmad Fachan and Atim Djazuli

Business and Management Horizons, 2014, vol. 2, issue 2, 29-37

Abstract: Analyzing Islamic Micro Finance Performance with Economic Value Added (EVA). EVA analysis is used for deciding the regulations of investment of BMT. Monetary report is analyzed with EVA, Net Operating Profit After Tax (NOPAT), Weighted Average Cost of Capital (WACC), and Invested Capital. The result of performance using EVA shows that BMT can create value. NOPAT underwent a significant increase compare with the capital fund. The profit that is created is higher than accounting profit which shows that BMT has a very good performance. The capital which is consists of debt and equity has been used efficiently and effectively so that it can increase the profit. The BMT officer should pay attention to the financial performance in order to decide the regulation and investment that will be done. Investment and activity which is done by BMT should be resulted more value so that it can give the real profit for the development of BMT.

Keywords: EVA; NOPAT; WACC; Invested Capital (search for similar items in EconPapers)
Date: 2014
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