Financial Performance and Operational Efficiency: A Financial Ratio and Value-for-Money Analysis

https://doi.org/10.35912/gabs.v2i3.3873
Published: Feb 2, 2026

Abstract:

Purpose: This study aims to evaluate the financial performance of RS UKRIDA, a private teaching hospital, using financial ratio analysis and the Value for Money (VfM) approach. The evaluation is crucial for assessing the hospital’s financial management, considering its dual role as a healthcare provider and an educational institution.

Research methodology: A quantitative descriptive approach is employed, analyzing RS UKRIDA's financial statements (income statement, balance sheet, and budget realization reports) for the 2023–2024 period. Financial ratios assess liquidity, solvency, profitability, and activity, while the VfM approach evaluates economy, efficiency, and effectiveness in financial management.

Results: The study finds that RS UKRIDA shows efficient budget utilization, but economic and effectiveness aspects need improvement, particularly in budget control and revenue target achievement. Financial ratios reveal weak liquidity and solvency, and negative profitability, though some improvement is observed during the study period.

Conclusions: RS UKRIDA exhibits operational efficiency but lacks financial stability and optimal revenue realization. The combination of financial ratio analysis and VfM provides a comprehensive view, indicating the need for a balanced approach to improve financial performance.

Limitations: The study is limited by its focus on a single institution and its reliance on secondary financial reports, which may not fully capture non-financial aspects of performance.

Contribution: This research offers valuable insights for RS UKRIDA’s management in improving financial performance and provides an academic reference for future studies on financial management in private teaching hospitals.

Keywords:
1. Financial Performance
2. Financial Ratios
3. Value For Money
4. Teaching Hospital
5. UKRIDA Hospital
Authors:
1 . Sunardi Perastia
Universitas Kristen Krida Wacana, Jakarta, Indonesia
2 . Eka Desy Purnama
Universitas Kristen Krida Wacana, Jakarta, Indonesia
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How to Cite
Perastia, S., & Purnama, E. D. . (2026). Financial Performance and Operational Efficiency: A Financial Ratio and Value-for-Money Analysis. Global Academy of Business Studies, 2(3), 203–215. https://doi.org/10.35912/gabs.v2i3.3873
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Issue & Section
Vol. 2 No. 3 (2026): January
Articles
References

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    Batrancea, L. (2021). The influence of liquidity and solvency on performance within the healthcare industry: Evidence from publicly listed companies. Mathematics, 9(18), 2231. doi:https://doi.org/10.3390/math9182231

    Benamraoui, A., Chatzivgeri, E., Jory, S. R., & Ajay, R. (2024). VfM audit and the UK public sector: A critical review of the VfM reports. Financial Accountability & Management, 40(2), 127-153. doi:https://doi.org/10.1111/faam.12338

    Chege, A. K., Mwenja, D., Kiambati, K., & Mbugua, L. (2020). Budget execution and service delivery of public county health facilities. Journal of Industrial Policy and Technology Management, 2(2), 81-91.

    Danielson, M. G. (2025). Stock Valuation and Investor Expectations. Encyclopedia, 5(4), 203. doi:https://doi.org/10.3390/encyclopedia5040203

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    Gunawan, H., & Elshinta, R. (2025). Profitability and Valuation Ratios as Predictors of Stock Prices: Contemporary Evidence from Indonesia’s Capital Market. Indonesian Financial Review, 5(1), 195-215. doi:https://doi.org/10.55538/ifr.v5i1.68

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    Lombi, F. D., Haliah, H., Nirwana, N., & Oemar, M. A. F. I. (2022). Application Of Value For Money In Assessing Performance In Public Sector Hospitals: A Systematic Literature Review. Jurnal Ekonomi Ichsan Sidenreng Rappang, 1(02), 57-71. doi:https://doi.org/10.61912/jeinsa.v1i02.12

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    Putri, D. D., & Hidayat, R. A. (2025). The Effect of Profitability, Leverage, and Liquidity on Company Value with Dividend Policy as a Moderating Variable. Majapahit Journal of Islamic Finance and Management, 5(1), 835–852. doi:https://doi.org/10.31538/mjifm.v5i1.417

    Putri, S. Y., Widajantie, T. D., & Wilasittha, A. A. (2024). A comparative analysis before and after pandemic on environmental accounting public hospital. International Journal of Financial, Accounting, and Management, 6(1), 1-17. doi:https://doi.org/10.35912/ijfam.v6i1.1706

    Reynilda, R., & Renal, M. (2025). Evaluation of Public Sector Financial Management and Costing System in Improving Performance Effectiveness. Economics and Digital Business Review, 6(1), 1015-1033. doi:https://doi.org/10.37531/ecotal.v6i1.2236

    Rodrigues, N. J. P., & Carvalho, J. M. (2023). Public-private partnership in the Portuguese health sector. Heliyon, 9(8), 1-11. doi:https://doi.org/10.1016/j.heliyon.2023.e19122

    Rorimpandey, H. M. H. S. J., Rorimpandey, J., Siagian, H., & Malau, H. (2025). Financial performance of Jakarta hospitals before and after the COVID 19 pandemic analysis of profitability liquidity and leverage ratios. Ilomata International Journal of Tax and Accounting, 6(2), 1-12. doi:https://doi.org/10.61194/ijtc.v6i2.1726

    Sam, A. A. R., Haliah, H., & Kusumawati, A. (2024). Disclosure of Transparency, Accountability and Value for Money Concept in Public Sector Financial Management: A Systematic Literature Review. International Journal of Economic Research and Financial Accounting, 3(1), 228-241. doi:https://doi.org/10.55227/ijerfa.v3i1.245

    Sariyani, M. D., & Saputri, A. R. (2025). Operational Efficiency and Profitability: A Comparative Financial Performance Analysis of Listed Hospital Corporations (MIKA, SILO, HEAL) on the Indonesia Stock Exchange During the JKN Era. Journal of Health Service Administration and Hospital Management, 1(2), 9-18. doi:https://doi.org/10.69855/jhsah.v1i2.407

    Septiana, Y., & Sidharta, T. K. (2025). The Effect of Financial Ratios on the Operational Performance of Logistics Companies In PT The Eternal Universe of Sentosa. Jurnal Ekonomi, Manajemen, Akuntansi Dan Keuangan, 6(3), 1-11. doi:https://doi.org/10.53697/emak.v6i3.2788

    Sofyan, A., Nurjaman, K., & Joharudin, A. (2025). Examining Spending Efficiency and Budget Realization Growth in Regional Financial Performance: A Study of West Java Province. Examining Spending Efficiency and Budget Realization Growth in Regional Financial Performance: A Study of West Java Province, 7(?), 434-454. doi:https://doi.org/10.54783/ijsoc.v7i1.1392

    Suroso, A. F., & Sufiyati, S. (2025). The Effect of Profitability, Liquidity, Leverage, Firm Size and Firm Age on Sustainability Report: Evidence from Energy and Healthcare Companies Listed on The Indonesia Stock Exchange. Inovasi: Jurnal Ilmiah Ilmu Manajemen, 12(2), 525–533. doi:https://doi.org/10.32493/Inovasi.v12i2.p525-533.55797

    Upadhyay, S., & Smith, D. G. (2023). Healthcare associated infections, nurse staffing, and financial performance. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, 60, 1-9. doi:https://doi.org/10.1177/00469580231159315

    Usman, U., Haeril, H., Salida, A., Taufiq, M., & Nur, Y. (2025). Evaluation of Local Government Financial Performance from the Value for Money Perspective. Atestasi: Jurnal Ilmiah Akuntansi, 8(2), 130-137. doi:https://doi.org/10.57178/atestasi.v8i2.1485

  1. Aguilera, R. V., De Massis, A., Fini, R., & Vismara, S. (2024). Organizational goals, outcomes, and the assessment of performance: Reconceptualizing success in management studies. Journal of management studies, 61(1), 1-36. doi:https://doi.org/10.1111/joms.12994
  2. Ahn, S., Cho, T. S., & Cho, C. K. (2025). Stock Market Reaction to Environmental Performance: The Role of Organizational Reputation as an Interpretive Lens. Organization & Environment, 38(3), 440-470. doi:https://doi.org/10.1177/10860266251347359
  3. Arrasily, N. F., Minarsih, T. J., Hartono, B., & Daud, A. G. (2025). Hospital cash flow management strategies in facing the post-COVID-19 global health crisis. Jurnal Ilmiah Ekotrans & Erudisi, 5(1), 19-32. doi:https://doi.org/10.69989/aprqsn10
  4. Batrancea, L. (2021). The influence of liquidity and solvency on performance within the healthcare industry: Evidence from publicly listed companies. Mathematics, 9(18), 2231. doi:https://doi.org/10.3390/math9182231
  5. Benamraoui, A., Chatzivgeri, E., Jory, S. R., & Ajay, R. (2024). VfM audit and the UK public sector: A critical review of the VfM reports. Financial Accountability & Management, 40(2), 127-153. doi:https://doi.org/10.1111/faam.12338
  6. Chege, A. K., Mwenja, D., Kiambati, K., & Mbugua, L. (2020). Budget execution and service delivery of public county health facilities. Journal of Industrial Policy and Technology Management, 2(2), 81-91.
  7. Danielson, M. G. (2025). Stock Valuation and Investor Expectations. Encyclopedia, 5(4), 203. doi:https://doi.org/10.3390/encyclopedia5040203
  8. Fathi, S., Mohammadin, Z., & Azarbayjani, K. (2025). Corporate finance signaling theory: an empirical analysis on the relationship between information asymmetry and the cost of equity capital. International Journal of Disclosure and Governance, 22(3), 629-643. doi:https://doi.org/10.1057/s41310-024-00261-4
  9. Ghozali, I., & Ratmono, D. (2017). Analisis multivariat dan ekonometrika: teori, konsep, dan aplikasi dengan eview 10.
  10. Gudergan, S. P., Moisescu, O. I., Radomir, L., Ringle, C. M., & Sarstedt, M. (2025). Special issue editorial: Advanced partial least squares structural equation modeling (PLS-SEM) applications in business research. Journal of Business Research, 188, 115087. doi:https://doi.org/10.1016/j.jbusres.2024.115087
  11. Gunawan, H., & Elshinta, R. (2025). Profitability and Valuation Ratios as Predictors of Stock Prices: Contemporary Evidence from Indonesia’s Capital Market. Indonesian Financial Review, 5(1), 195-215. doi:https://doi.org/10.55538/ifr.v5i1.68
  12. Huang, J., Hu, P., Wang, D. D., & Wang, Y. (2025). The Double Signal of ESG Reports: Readability, Growth, and Institutional Influence on Firm Value. Sustainability, 17(6), 2514. doi:https://doi.org/10.3390/su17062514
  13. Huzaema, N. V., Dahlan, F., & Akbar, A. A. (2025). Financial Performance Analysis Using the Value For Money Method at BPKAD Tidore Islands City, Indonesia for 2019-2023 Period. Golden Ratio of Data in Summary, 5(3), 612-624. doi:https://doi.org/10.52970/grdis.v5i3.1295
  14. Lombi, F. D., Haliah, H., Nirwana, N., & Oemar, M. A. F. I. (2022). Application Of Value For Money In Assessing Performance In Public Sector Hospitals: A Systematic Literature Review. Jurnal Ekonomi Ichsan Sidenreng Rappang, 1(02), 57-71. doi:https://doi.org/10.61912/jeinsa.v1i02.12
  15. Maulana, A., Alim, R. Z., & Djasuli, M. (2024). Value for Money Government Budget Performance. International Journal of Education, Information Technology, and Others, 7(3), 11-21. doi:https://doi.org/10.5281/10.5281/zenodo.13369646
  16. Munteanu, I., Ionescu-Feleag?, L., Ionescu, B. ?., Condrea, E., & Romanelli, M. (2025). From Metrics to Meaning: Research Trends and AHP-Driven Insights into Financial Performance in Sustainability Transitions. Sustainability, 17(14), 6437. doi:https://doi.org/10.3390/su17146437
  17. Nasution, S., & Sibuea, N. (2024). The role of financial management in corporate sustainability: An empirical review. Join: Journal of Social Science, 1(4), 539-553. doi:https://doi.org/10.59613/enwzwa75
  18. Oranefo, P. C., & Egbunike, C. F. (2023). Gearing ratio and operating cash flow performance of quoted manufacturing firms in Nigeria. International Journal of Financial, Accounting, and Management, 4(4), 395-410. doi:https://doi.org/10.35912/ijfam.v4i4.1090
  19. Owusu, C. K., & Garr, D. K. (2025). Examining the relationship between financial performance indicators and capitalization ratios: Analysis of Ghana's banking sector. International Journal of Financial, Accounting, and Management, 6(3), 445-460. doi:https://doi.org/10.35912/ijfam.v6i3.2594
  20. Putri, D. D., & Hidayat, R. A. (2025). The Effect of Profitability, Leverage, and Liquidity on Company Value with Dividend Policy as a Moderating Variable. Majapahit Journal of Islamic Finance and Management, 5(1), 835–852. doi:https://doi.org/10.31538/mjifm.v5i1.417
  21. Putri, S. Y., Widajantie, T. D., & Wilasittha, A. A. (2024). A comparative analysis before and after pandemic on environmental accounting public hospital. International Journal of Financial, Accounting, and Management, 6(1), 1-17. doi:https://doi.org/10.35912/ijfam.v6i1.1706
  22. Reynilda, R., & Renal, M. (2025). Evaluation of Public Sector Financial Management and Costing System in Improving Performance Effectiveness. Economics and Digital Business Review, 6(1), 1015-1033. doi:https://doi.org/10.37531/ecotal.v6i1.2236
  23. Rodrigues, N. J. P., & Carvalho, J. M. (2023). Public-private partnership in the Portuguese health sector. Heliyon, 9(8), 1-11. doi:https://doi.org/10.1016/j.heliyon.2023.e19122
  24. Rorimpandey, H. M. H. S. J., Rorimpandey, J., Siagian, H., & Malau, H. (2025). Financial performance of Jakarta hospitals before and after the COVID 19 pandemic analysis of profitability liquidity and leverage ratios. Ilomata International Journal of Tax and Accounting, 6(2), 1-12. doi:https://doi.org/10.61194/ijtc.v6i2.1726
  25. Sam, A. A. R., Haliah, H., & Kusumawati, A. (2024). Disclosure of Transparency, Accountability and Value for Money Concept in Public Sector Financial Management: A Systematic Literature Review. International Journal of Economic Research and Financial Accounting, 3(1), 228-241. doi:https://doi.org/10.55227/ijerfa.v3i1.245
  26. Sariyani, M. D., & Saputri, A. R. (2025). Operational Efficiency and Profitability: A Comparative Financial Performance Analysis of Listed Hospital Corporations (MIKA, SILO, HEAL) on the Indonesia Stock Exchange During the JKN Era. Journal of Health Service Administration and Hospital Management, 1(2), 9-18. doi:https://doi.org/10.69855/jhsah.v1i2.407
  27. Septiana, Y., & Sidharta, T. K. (2025). The Effect of Financial Ratios on the Operational Performance of Logistics Companies In PT The Eternal Universe of Sentosa. Jurnal Ekonomi, Manajemen, Akuntansi Dan Keuangan, 6(3), 1-11. doi:https://doi.org/10.53697/emak.v6i3.2788
  28. Sofyan, A., Nurjaman, K., & Joharudin, A. (2025). Examining Spending Efficiency and Budget Realization Growth in Regional Financial Performance: A Study of West Java Province. Examining Spending Efficiency and Budget Realization Growth in Regional Financial Performance: A Study of West Java Province, 7(?), 434-454. doi:https://doi.org/10.54783/ijsoc.v7i1.1392
  29. Suroso, A. F., & Sufiyati, S. (2025). The Effect of Profitability, Liquidity, Leverage, Firm Size and Firm Age on Sustainability Report: Evidence from Energy and Healthcare Companies Listed on The Indonesia Stock Exchange. Inovasi: Jurnal Ilmiah Ilmu Manajemen, 12(2), 525–533. doi:https://doi.org/10.32493/Inovasi.v12i2.p525-533.55797
  30. Upadhyay, S., & Smith, D. G. (2023). Healthcare associated infections, nurse staffing, and financial performance. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, 60, 1-9. doi:https://doi.org/10.1177/00469580231159315
  31. Usman, U., Haeril, H., Salida, A., Taufiq, M., & Nur, Y. (2025). Evaluation of Local Government Financial Performance from the Value for Money Perspective. Atestasi: Jurnal Ilmiah Akuntansi, 8(2), 130-137. doi:https://doi.org/10.57178/atestasi.v8i2.1485