Financial performance analysis of Sungai Penuh City

This study aims to analyze the regional financial performance of Sungai Penuh City based on 1) the ratio of regional financial independence, 2) the ratio of the degree of fiscal decentralization, 3) the ratio of the effectiveness of Regional Original Income (PAD), 4) the efficiency ratio, 5) the harmony ratio and 6) the growth ratio. The data in this study are sourced from the Regional Revenue and Expenditure Budget (APBD) of Sungai Penuh City from 2018 - 2023 which consists of PAD data, transfer income, PAD budget, operating expenditure, capital expenditure, and total expenditure. The results of the study show that the regional financial performance of Sungai Penuh City based on 1) the ratio of regional financial independence on average from 2018 - 2023 is 5%. This figure is included in the very low category with an instructive relationship pattern because it is included in the interval 0% - 25%, 2) the ratio of the degree of fiscal decentralization on average from 2018 - 2023 is 5%. This figure is included in the very lacking category because it is in the interval of 0% - 10%, 3) the average PAD effectiveness ratio from 2018 - 2023 with a value of 91%. The figure is included in the fairly effective category because it is in the interval of 90% - 99%, 4) the average efficiency ratio from 2018 - 2023 with a value of 101%. This figure is included in the inefficient category because it is in the interval above 40%, 5) the average harmony ratio from 2018 - 2023 is included in the ineffective category because the operating expenditure ratio value is greater than the capital expenditure ratio (65% > 25%), 6) the average growth ratio from 2018 - 2023 with a value of -4.00%. This figure is included in the Very Bad category because it has a negative value.