The Influence of Financial Performance on Operational Cost Policy to Predict Financial Distress in BPRS Al Salaam Branch Bandung

Abstract

The financial performance of a company can be seen based on financial ratios of the financial statements of the company. The decline in financial performance in continuing to cause financial distress, which is a very difficult situation can even be said to be close to bankruptcy. If not done early control it will have a major impact with the loss of confidence of customers. So the strategy is required to anticipate the occurrence of financial distress. Based on the background of the problem, it is concluded that the First formulation of the problem, how financial performance of BPRS Al Salaam branch of Bandung period 2012 - 2015? Second, how are the policy operational costs in predicting financial distress in PT. BPRS Al Salaam Branch Bandung? Third, How does the financial performance of the operational costs of the policy in predicting financial distress in PT. BPRS Al Salaam Branch Bandung? The method used in this research is descriptive and verification, which is a method that seeks to collect data in accordance with the actual situation, deliver, and analyze them to provide a fairly clear picture of the object under study and then it can be deduced. While the verification method aims to test the truth of a hypothesis or a phenomenon that is done by collecting field data, In this case the study examined the financial performance BPRS Al Salaam in predicting financial distress. The conclusion of this study indicate financial performance in BPRS Al Salaam branch of Bandung has fluctuated and has an average (mean) ROA ratio amounted to 14.42%. Increased Return On Assets (ROA) can be caused by several things, such as an increase in profit from financing disbursed. Then the budgeted operational cost management BPRS Al Salaam in predicting financial stress, the average percentage in the range of 83% of the total assets owned. In addition, the level of financial performance (ROA) significantly affects operating costs (ROA) in BPRS Al Salaam in predicting financial distress.