Financial Performance Analysis of Zakat, Infaq, and Sadaqah Institution
Keywords:
Zakat, Activity Ratio, Liquidity Ratio, Efficiency Ratio, Amil Fund Ratio, Growth RatioAbstract
This study analyzes the financial performance of the Amil Zakat Institution (LAZ) Muhammadiyah in West Kalimantan using financial ratios, including activity ratio, efficiency ratio, growth ratio, amil fund ratio, and liquidity ratio for the period 2020-2022. The results indicate that LAZ maintains stability in managing and allocating funds, though some fluctuations are observed. The activity ratio shows that the institution improves the efficiency of distributing zakat, infaq, and sadaqah, despite a decrease in fund turnover in 2022. The efficiency ratio demonstrates that fundraising costs remain a significant challenge, with high values relative to collected funds. The growth ratio reflects a significant increase in zakat fundraising but a decline in infaq/sadaqah fundraising in 2022 after extraordinary growth in the previous year. The amil fund ratio shows a downward trend in the allocation of amil funds from zakat and infaq/sadaqah, reflecting better efficiency. The liquidity ratio indicates that the institution has sufficient liquidity to cover its obligations related to zakat and ZIS funds. Overall, this research provides insights into the effectiveness and efficiency of LAZ’s financial management with several recommendations for improvement in the future.
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