Fikri Edriko Kurniawan (1), Iriani Iriani (2)
General Background: Financial performance evaluation is essential for assessing accountability, efficiency, profitability, and long-term value creation in state-owned enterprises operating in strategic sectors. Specific Background: Company XYZ, an Indonesian state-owned forestry enterprise, maintained relatively high revenue during 2021–2025 while Net Profit Margin and Return on Equity showed a sustained decline. Knowledge Gap: Previous studies often examine DuPont Analysis and Economic Value Added separately and focus mainly on profit-oriented companies, leaving limited integrated evidence for forestry-based state-owned enterprises with social and ecological mandates. Aims: This study aimed to evaluate the financial performance of Company XYZ during 2021–2025 by integrating DuPont Analysis, Economic Value Added, and Root Cause Analysis using the 5 Whys approach. Results: Return on Equity rose temporarily from 3.72% in 2021 to 4.62% in 2022, then declined to 0.66% in 2025. Net Profit Margin fell from 11.43% in 2022 to 1.94% in 2025, while Total Asset Turnover weakened and Equity Multiplier remained relatively stable. Economic Value Added was positive only in 2021 and became negative from 2022 to 2025, reaching minus IDR 1.20 trillion in 2025. Novelty: This study combines DuPont Analysis, Economic Value Added, and 5 Whys Root Cause Analysis to assess accounting-based and economic-based performance. Implications: Company XYZ should integrate EVA with ROE, optimize NOPAT, control invested capital growth, improve operational efficiency, and diversify beyond primary commodities.
Highlights:
Keywords: DuPont Analysis, Economic Value Added, Financial Performance
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