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Analysis Of Financial Performance Measurement Based On Net Profit Margin, Return On Assets And Return On Equity In Companies Listed On The Indonesia Stock Exchange Ramadhani, Laily
Jurnal Ekonomi Vol. 13 No. 03 (2024): Jurnal Ekonomi, Edition July -September 2024
Publisher : SEAN Institute

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Abstract

Based on financial report data from PT. Ultrajaya Milk, Tbk. seen from the profitability ratio provides an overview of changes in financial position in each period, this shows that the company's profit fluctuates. For this reason, a more specific analysis is needed to get a clearer picture of the increase and decrease in company performance that occurs each year. So this research aims to assess the financial performance of PT.Ultrarajaya Milk,Tbk. During 2018-2022 based  on  Profitability Ratios consisting of Net Profit Margin, Return On Assets and Return On Equity. Based on the results of research and discussion, it can be concluded that PT.Ultrajaya Milk,Tbk. During 2018 to 2022, looking at the Profitability Ratio based  on Net Profit Margin, Return  On Assets and Return On Equity, it shows that financial performance results are considered less good, this is based on the results of calculations for 5 obtained an average net profit margin value of 15.98%, return on assets of 14.25% and return on equity of 19.52% years which are still far below the industry average standard.
Impact of Liquidity Ratio and Solvency Ratio on the Profitability Ratio in PT. Indofood Sukses Makmur Manik, Trisnawati; Ramadhani, Laily; Sagala, Lapiti Gokmatua
Global Insights in Management and Economic Research Vol. 1 No. 3 (2025): Agustus 27, 2025
Publisher : INSPIRETECH GLOBAL INSIGHT

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53905/Gimer.v1i03.18

Abstract

Introduction: Financial performance is a critical indicator of corporate health and operational efficiency. PT. Indofood Sukses Makmur, Tbk., as one of Indonesia's leading food processing companies, has exhibited fluctuations in its financial ratios during 2019-2023, necessitating an empirical investigation into the relationships between liquidity, solvency, and profitability metrics. Purpose of the Study: This research aims to examine the impact of liquidity ratio (Current Ratio) and solvency ratio (Debt to Asset Ratio) on profitability ratio (Return on Assets) at PT. Indofood Sukses Makmur, Tbk. during the period 2019-2023, both partially and simultaneously. Materials and Methods: This quantitative study employed secondary data from audited financial statements obtained from the Indonesia Stock Exchange. Multiple linear regression analysis was conducted using SPSS version 23, with classical assumption tests including normality, multicollinearity, and heteroscedasticity tests. The sample consisted of annual financial data over five consecutive years (2019-2023). Results: The partial test (t-test) revealed that Current Ratio significantly and positively influences ROA (t-value = 3.409 > t-table = 2.353, p = 0.032). Similarly, Debt to Asset Ratio demonstrates a significant positive effect on ROA (t-value = 3.578 > t-table = 2.353, p = 0.042). The simultaneous test (F-test) confirmed that both ratios collectively impact ROA (F-value = 4.223 > F-table = 19.30, p = 0.217). The adjusted R² value of 0.635 indicates that 63.5% of ROA variance is explained by the independent variables. Conclusions: Both liquidity and solvency ratios significantly influence profitability at PT. Indofood Sukses Makmur, Tbk. Enhanced liquidity management and optimal capital structure contribute positively to asset utilization efficiency and profit generation. These findings provide empirical evidence for financial decision-making and strategic planning in the food manufacturing sector.
Liquidity Ratio Analysis for Evaluating Corporate Financial Performance: Evidence from PT Charoen Pokphand Indonesia Tbk Listed on the Indonesia Stock Exchange Hasibuan, Risma Khoir; Ramadhani, Laily; Nasution, Hafni Cholida
Global Insights in Management and Economic Research Vol. 2 No. 01 (2026): February Issue Global Insights in Management and Economic Research
Publisher : INSPIRETECH GLOBAL INSIGHT

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53905/Gimer.v2i01.06

Abstract

Purpose of the study: This study aims to evaluate the financial performance of PT. Charoen Pokphand Indonesia, Tbk during the period 2019-2023 based on liquidity ratios, specifically Current Ratio, Quick Ratio, and Cash Ratio. The research seeks to determine whether the company maintains adequate liquidity to meet short-term obligations and sustain operational efficiency. Materials and methods: This study employs a descriptive qualitative research design utilizing secondary data obtained from the audited annual financial statements of PT. Charoen Pokphand Indonesia, Tbk. The population comprises all financial reports of the company, with the sample consisting of five consecutive years of financial statements (2019-2023). Data analysis was conducted through liquidity ratio calculations and comparison against industry standard benchmarks. The analytical framework follows established financial ratio analysis methodologies as documented in contemporary accounting literature. Results: The findings reveal that PT. Charoen Pokphand Indonesia, Tbk demonstrates varying levels of liquidity performance across the three measured ratios. The Current Ratio achieved an average of 209%, exceeding the industry standard of 200%, indicating satisfactory short-term debt coverage capacity. However, the Quick Ratio averaged 112%, falling below the industry benchmark of 150%, suggesting potential challenges in meeting immediate obligations without inventory liquidation. Similarly, the Cash Ratio averaged 29%, significantly below the industry standard of 50%, indicating limited cash reserves relative to current liabilities. Conclusions: The study concludes that while PT. Charoen Pokphand Indonesia, Tbk maintains adequate overall liquidity as measured by the Current Ratio, the company exhibits suboptimal performance in more stringent liquidity measures. The declining trend in Quick Ratio and Cash Ratio over the five-year period warrants strategic attention to enhance cash management practices and reduce dependency on inventory for short-term obligation fulfillment.