Profit is a positive difference between income and expenses spent

Oct 13, 2025 by vinooalluri.com 66 views

Introduction

Founded with the main goal of making a profit, PT Mayora Indah Tbk seeks not only to increase profits, but also to achieve the development and survival of a better company. In this context, profits are not only considered as financial achievements, but also reflect the achievements of all employees who contribute to company growth. Profit is a positive difference between income and expenses spent, which is a benchmark for the success of the company (Ummi, 2015; Utari, 2016). The company's financial performance is a crucial aspect of its overall success, and understanding the factors that influence it is essential for making informed decisions.

Factors Influencing Financial Performance

To be able to increase profits, companies need to pay attention to several key factors, such as costs, selling prices, and sales volumes. These three factors are interconnected and influence the final results of the company's financial performance. By reducing operational costs and increasing sales volume, profit can be maximized. This is in accordance with the understanding of the costs explained by Harnanto (2017), which is the amount of money spent to get something or achieve certain goals. Effective cost management is critical in maintaining profitability, and companies must continually monitor and adjust their costs to stay competitive.

Break Even Point Analysis

One method that can be used to analyze the financial performance of PT Mayora Indah Tbk during 2017 to 2019 is to use Break Even Point (BEP) analysis. BEP is the point where the total income is equal to the total cost, so there is no profit or loss. This analysis is important in profit planning, because it provides a clear picture of how many products must be sold to cover operational costs. By using financial data from PT Mayora Indah Tbk, we can do BEP calculations consisting of fixed costs and variable costs. In this calculation, we will assess the revenue generated from sales and compare it with total costs. If the sale is above the break-even point, the company starts to make a profit; Conversely, if below the break-even point, the company suffers losses.

Financial Performance Analysis

From the financial performance analysis conducted, it can be found that in 2017-2019, PT Mayora Indah Tbk experienced a significant increase in sales. This shows that the marketing and management strategies applied are quite effective. However, it is important to remember that the increase in sales must be balanced with cost control to maintain profitability. The company must continually monitor its costs and adjust them as necessary to ensure that it remains profitable.

Conclusion

Using Break Even Point analysis provides valuable insight to the management of PT Mayora Indah Tbk in planning future profits. By knowing the break-even point, the company can be better in making decisions related to production, cost management, and sales strategies. Therefore, a deep understanding of financial performance and BEP analysis is very important to maintain the sustainability and growth of companies in this increasingly competitive industry.

Recommendations

Based on the analysis conducted, the following recommendations are made:

PT Mayora Indah Tbk should continue to monitor its costs and adjust them as necessary to maintain profitability.
The company should focus on increasing sales volume while maintaining cost control to maximize profit.
The management of PT Mayora Indah Tbk should use BEP analysis as a tool in planning future profits and making decisions related to production, cost management, and sales strategies.

Limitations of the Study

This study has several limitations, including:

The analysis was conducted using historical financial data, which may not reflect the current financial performance of PT Mayora Indah Tbk.
The study only analyzed the financial performance of PT Mayora Indah Tbk during 2017-2019, and may not be representative of the company's financial performance in other years.
The study did not consider other factors that may influence the financial performance of PT Mayora Indah Tbk, such as market trends and competition.

Future Research Directions

Future research should focus on:

Conducting a more comprehensive analysis of the financial performance of PT Mayora Indah Tbk, including other factors that may influence its financial performance.
Analyzing the financial performance of other companies in the same industry to identify best practices and areas for improvement.
Developing a more sophisticated model for predicting the financial performance of PT Mayora Indah Tbk, including the use of machine learning and other advanced analytics techniques.

Q: What is Break Even Point (BEP) analysis?

A: Break Even Point (BEP) analysis is a method used to determine the point at which a company's total revenue equals its total fixed and variable costs, resulting in neither profit nor loss. It is an important tool in profit planning, as it provides a clear picture of how many products must be sold to cover operational costs.

Q: What are the key factors that influence BEP analysis?

A: The key factors that influence BEP analysis are:

Fixed costs: These are costs that remain the same even if the level of production changes, such as rent and salaries.
Variable costs: These are costs that change with the level of production, such as raw materials and labor costs.
Selling price: The price at which a product is sold.
Sales volume: The number of products sold.

Q: How is BEP analysis used in profit planning?

A: BEP analysis is used in profit planning to determine the minimum sales required to cover operational costs and achieve profitability. By knowing the break-even point, companies can make informed decisions about production, cost management, and sales strategies.

Q: What are the benefits of using BEP analysis?

A: The benefits of using BEP analysis include:

Improved profitability: By knowing the break-even point, companies can make decisions that maximize profit.
Better cost management: BEP analysis helps companies identify areas where costs can be reduced.
Increased sales: By understanding the sales required to cover operational costs, companies can develop effective sales strategies.

Q: What are the limitations of BEP analysis?

A: The limitations of BEP analysis include:

Assumes linear relationships: BEP analysis assumes that costs and revenues are linear, which may not always be the case.
Does not consider market trends: BEP analysis does not take into account market trends and competition.
Requires accurate data: BEP analysis requires accurate and up-to-date financial data, which may not always be available.

Q: How can BEP analysis be used in real-world scenarios?

A: BEP analysis can be used in a variety of real-world scenarios, including:

Production planning: BEP analysis can help companies determine the minimum production level required to cover operational costs.
Cost management: BEP analysis can help companies identify areas where costs can be reduced.
Sales strategy development: BEP analysis can help companies develop effective sales strategies to maximize profit.

Q: What are some common mistakes to avoid when using BEP analysis?

A: Some common mistakes to avoid when using BEP analysis include:

Ignoring fixed costs: Fixed costs should be included in BEP analysis to ensure accurate results.
Assuming linear relationships: BEP analysis assumes linear relationships, which may not always be the case.
Not considering market trends: BEP analysis does not take into account market trends and competition.

Q: How can BEP analysis be used in conjunction with other financial analysis tools?

A: BEP analysis can be used in conjunction with other financial analysis tools, including:

Financial ratio analysis: BEP analysis can be used to identify areas where costs can be reduced and improve profitability.
Cash flow analysis: BEP analysis can be used to determine the minimum cash flow required to cover operational costs.
Sensitivity analysis: BEP analysis can be used to test the sensitivity of the break-even point to changes in costs and revenues.