Open AccessPerformance of Microfinance Institutions of Cayenne Chilli (Capsiccum frutescens L) Farming
Author(s) -
Ida Marina,
Dety Sukmawati,
Ning Srimenganti
Publication year - 2020
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/466/1/012030
Subject(s) - microfinance , solvency , return on equity , profit margin , solvency ratio , agribusiness , business , return on assets , agriculture , descriptive statistics , agricultural science , profitability index , gross margin , market liquidity , contract farming , financial system , economics , finance , economic growth , statistics , geography , mathematics , environmental science , archaeology
The research was conducted to determine the performance of Sauyunan Agribusiness Microfinance Institutions (LKMA) and its Sustainability in rawaichilli farming at Cikeusal Village, Talaga District, Majalengka Regency. The quantitative descriptive and qualitative descriptive research methods was applied by involving 71 respondents. The results showed that the performance of LKMA was shown by the level of liquidity of 189.9%. The level of solvency was below standard and the ratio of debt to equity was only 24.125%, while the ratio of debt to total assets was above the standard (35%). LKMA Sauyunan was not profitable for the ratio of Net Profit Margin (NPM) 28.75%, Return On Assets (ROA) 5.05%, Return On Equity (ROE)10.95%, Return On Investment (ROI) 5.05% below the 30% standard. This finding concludes that rawaichilli farming could not be sustainable and urgently requires an innovation to improve community-based agribusiness microfinance by adopting various best-practice experiences in a number of microfinance institutions.