ANALYSIS OF FINANCIAL PERFORMANCE REVIEWED FROM COSTS AND REVENUES IN FOOD AND BEVERAGE COMPANIES IN INDONESIA

Abstract

A business is considered successful if it can maintain its financial performance, Operating Expenses and Revenue are two elements that may have an impact on Financial Performance. This study aims to determine the effect of Operating Costs and Revenue on Financial Performance in Manufacturing Companies in the Food and Beverage Subsector Listed on the Indonesia Stock Exchange in 2021 – 2023 either partially or simultaneously. The sample used in this study is 35 samples from 48 populations of Food and Beverage Subsector Manufacturing Companies Listed on the Indonesia Stock Exchange in 2021 – 2023.  The method used to select samples is purposive sampling. In this study, the type of data is quantitative. The data source used is secondary data derived from the company's annual financial statements for a period of 3 years. The data analysis techniques used were multiple linear regression analysis, determination coefficient test (R2) and hypothesis test. Multiple linear regression analysis yielded the equation Y = 9.189 – 0.163 X₁ + 0.252 X2 + e. From the t-test conducted, the results showed that Operating Costs did not have a significant effect on Financial Performance with t_calculated -1.403 < 1.989 t_table or significance value 0.164 > 0.05. Thus H1 was rejected. Meanwhile, Revenue has a significant effect on Financial Performance with a calculation of 2.052 > 1,989 t_table or a significance value of 0.043 < 0.05. Thus H2 was accepted. From the F test, the results of the study showed that simultaneously Operating Costs and Revenue did not have a significant effect on Financial Performance with F_calculated as 2.562 < 3.108 F_table or a significance value of 0.083 > 0.05. Thus H3 was rejected. From the determination coefficient test, an R square value of 0.059 was obtained, meaning that the variables of Operating Costs and Revenue can only explain 5.9% of Financial Performance, so the proximity of the dependent and independent variables is weak. While the remaining 94.1% is influenced by other variables outside the model that have not been studied in this study, such as Debt, Liquidity, Leverage, Activity Ratio, Company Size.