Estimation of Profitability of a Company in PT. ABC Using Kalman Filter

Abstract

Profitability is a company’s ability to earn profits.The higher the profitability is, the more profits the company makes. Profit ratio is the ability or outcome performed or achieved by the company in the sale of goods or services produced or performed in a certain period. Considering that profitability is an important factor in the company, this study focused on the company profitability estimation to determine the increases in profit and loss of a company. The estimation in this study used the Kalman Filter method with the application of the principle of continual prediction and correction. The results of the simulation analysis proved that with 200, 300 and 400 iterations, it had an errror of less than 3%, and with 400 iterations it had higher accuracy than those with 200 and 300 iterations.