KLASIFIKASI KINERJA KEUANGAN PERUSAHAAN TERDAFTAR DI INDEKS SAHAM SYARIAH INDONESIA (ISSI) MENGGUNAKAN DECISION TREE ALGORITMA C4.5

Abstract

The financial performance of companies listed on the Indonesia Sharia Stock Index (ISSI) is an important concern for investors who want to invest in accordance with sharia principles. The main objective of this research is to develop a financial performance classification model using the Decision Tree C4.5 algorithm method and evaluate the performance of the resulting model. This study uses financial data from the annual financial statements of companies listed on ISSI, except the financial sector. The financial performance classification model built shows a fairly good performance for the Unhealthy category with a sensitivity of 64,56%, specificity of 74,23% and an Area Under Curve value of 0,78. The prediction results of financial performance in 2024 show that most companies are in the Unhealthy and Very Healthy financial performance categories. As many as 32% of companies that were previously in the Unhealthy category are predicted to experience an improvement in financial performance conditions to a better category. Meanwhile, 42% of companies in the Very Healthy category are predicted to experience a decrease in the company's financial performance.