Financial Performance Keys: Asset Efficiency Outperforms Firm Size in the Consumer Sector

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FORMOSA NEWS

Asset management efficiency proves to be a primary driver in boosting the profitability of non-cyclical consumer goods companies, whereas a large firm size does not necessarily guarantee high returns. This was revealed in a comprehensive study on the non-cyclical consumer sector on the Indonesia Stock Exchange (IDX) for the 2020–2024 period, published in July 2026. Conducted by Della Puspita Anggraini, Citra Ramayani, and Lovelly Dwinda Dahen from the Economics Education Study Program, Faculty of Economics and Business, University of PGRI West Sumatra, this research is crucial for providing strategic guidance for investors in evaluating financial health.

The consumer non-cyclicals sector is known as an industry resilient to economic fluctuations because it provides essential daily goods for the public. The number of companies in this sector showed rapid growth, increasing from 52 companies in 2020 to 129 companies in 2024. However, this growth in the number of firms does not automatically standardize the financial conditions of each corporation. Internal dynamics, such as operational expenses and financing structures, create performance gaps that are compelling to analyze in depth.

To examine this phenomenon, the research team applied an associative quantitative approach using purposive sampling techniques. From the population, 36 companies were selected with a total of 180 observational data points over a five-year period (2020–2024), whose financial statements were accessed directly from the official IDX website. Data analysis was performed using panel data regression with a Random Effects model through statistical software.

Statistical analysis results from this study detail several key findings as follows:

• Asset Management (Total Asset Turnover/TATO): Exerts a positive and significant effect on Return on Assets (ROA) with a coefficient value of 0.20248 and a probability of 0.0397 (below 0.05). This means that the more efficiently a company optimizes all its assets to generate sales, the higher the profit achieved.
• Firm Size: Exerts a negative and significant effect on ROA with a coefficient of -0.002440 and a probability of 0.0378. This finding indicates that larger assets are not always linear with high profits, as they are often accompanied by soaring maintenance and operational costs.
• Leverage, Sales Growth, and Liquidity: These three factors do not show a significant partial effect on company financial performance during the observation period.
• Simultaneous Test (F-Test): Combined, the five variables (firm size, leverage, sales growth, liquidity, and asset management) yielded an F-statistic probability value of 0.050339, indicating no significant simultaneous effect, pointing to the existence of other dominant external factors affecting financial performance.

These findings carry broad strategic implications for businesses and capital markets. Investors are advised not to be swayed merely by the scale or total assets of an issuer, but rather to carefully review management's effectiveness in utilizing available resources. For corporations, operational focus should be directed toward asset productivity rather than merely expanding asset size without adequate efficiency.

“Companies are expected not only to focus on increasing total assets, but also to ensure that the assets owned can be managed effectively and productively so that they can increase the company's profitability,” emphasized the researchers in their report.

Author Profiles:

• Della Puspita Anggraini: Student in the Economics Education Study Program, Faculty of Economics and Business, University of PGRI West Sumatra, with research interests in economic education and finance.
• Citra Ramayani: Lecturer and researcher in the Economics Education Study Program, Faculty of Economics and Business, University of PGRI West Sumatra, specializing in financial management and education.
• Lovelly Dwinda Dahen: Lecturer and researcher in the Economics Education Study Program, Faculty of Economics and Business, University of PGRI West Sumatra, actively examining economic issues and corporate performance.

Research Source:

• Journal Article Title: The Influence of Firm Size, Leverage, Sales Growth, Liquidity, and Asset Management on Return on Assets in Non-Cyclical Consumer Sector Companies Listed on the Indonesia Stock Exchange (IDX) for the 2020–2024 Period
• Journal Name: International Journal of Management Analytics (IJMA)
• Publication Year: 2026
• DOI: https://doi.org/10.59890/ijma.v4i3.34