The Financial Performance Assessment of University X Through ROI and EVA
Keywords:
Economic Value Added, Financial Performance, Return on InvestmentAbstract
Financial performance assessment is a crucial aspect in ensuring the sustainability and efficiency of higher education institution management, especially in an era of dynamic competition and economic change. This study aims to evaluate the financial performance of University X through two main approaches, namely Return on Investment (ROI) and Economic Value Added (EVA), to obtain a comprehensive overview of efficiency and value creation from the use of available resources. This research employs a descriptive quantitative approach using secondary financial data collected over five years (2020–2024). The components analyzed include net income, total assets, EBIT, cost of capital, and the university’s capital structure. The findings reveal that the ROI of University X consistently remained above 30% and peaked in 2022 and 2024 with values exceeding 50%, reflecting high efficiency in asset utilization. Meanwhile, the positive EVA values throughout the research period indicate that the institution not only covered its capital costs but also consistently created additional economic value. These results demonstrate that University X has healthy and sustainable financial performance. The study recommends that the university continue to strengthen cost-efficiency strategies, enhance financial oversight, and develop innovation-based long-term investments to maintain its positive performance in the future.
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