AN INTEGRATED APPROACH TO FINANCIAL PERFORMANCE ANALYSIS IN THE INDONESIAN BANKING INDUSTRY USING ACCOUNTING-BASED MEASURES

Abstract

This study aims to analyze the financial performance of PT Bank Negara Indonesia (Persero) Tbk by applying Common Size Analysis, Du Pont Analysis, and the Weighted Average Cost of Capital (WACC) approach. The research is conducted to provide a comprehensive understanding of the bank’s financial condition and efficiency in managing its assets, equity, and cost of capital. Financial statement data obtained from the company’s published annual reports are used as secondary data. The analysis focuses on identifying structural changes in financial statements, evaluating profitability performance, and assessing the cost of capital as a basis for financial decision-making. The results show that Common Size Analysis helps reveal trends in asset allocation and funding structure, while Du Pont Analysis highlights the role of profitability, efficiency, and leverage in generating returns. Furthermore, WACC analysis provides insight into the bank’s overall capital cost and financial sustainability. Overall, this study contributes to a clearer evaluation of banking financial performance and may serve as a reference for academics, practitioners, and investors in assessing financial health in the banking sector.