<![CDATA[Financial statements are essentially the result of an accounting process that is prepared based on generally accepted accounting principles. The financial statements aim to provide information about the company's financial position, performance, and cash flow that is useful for most users of the statements in order to make economic decisions and demonstrate management's stewardship for the use of resources entrusted to them. In this study, the author is interested in analyzing the financial performance and profitability of PT. Kimia Farma Tbk for the period 2018 - 2022. This study uses a qualitative descriptive analysis method for financial statements using a formula to measure the performance and profitability of PT. Kimia Farma during that period. The results of the analysis obtained by PT. Kimia Farma, the Current Ration of 3.22: 1 in 2018 is quite high so that it can be said to be over liquid, decreasing again in 2019 by 1.47: 1 and decreasing slightly to 1.16: 1 in 2020. It rose to 1.7: 1 in 2021 and increased significantly by 10.6: 1 or over liquidity occurred. The company's solvency ability to meet its obligations or debts, the total debt to equity ratio in 2018 of 0.52 indicates that this company operates quite Solven, namely that its own capital is greater than its debt. In 2019 there was an increase in total debt compared to its own capital, which was 56% of its own capital. Then from 2020; 2021; 2023 there was a decrease in total debt to equity starting from 0.52; 0.44 and 0.44 in 2022. The Receivable Turnover Ratio is seen to fluctuate from 6.11 times in 2018 to 23.4 times in 2019, then increasing again to 25.88 times in 2020, then tending to decrease in 2021, namely 16.8 times and 14.4 times in 2022. The decrease in the receivables turnover rate indicates an accumulation of receivables. There is a buildup of inventory as seen from the Inventory Turn Over Ratio, if there is a slowdown in inventory turnover it will have an impact on the company's profit margin or net earning power level as seen in this Ratio, which is 6.11 times in 2018 down to 5.79 times in 2019 and 4.97 times in 2020, then down again to 3.67 times in 2021 and to 3.59 times in 2022. As a result of the buildup of inventory, the company's Earning power will decrease from 13.1% in 2018 to 12.4% in 2019, but there was an improvement again in 2020, which was 14.7% then down to 12% in 2021 and 2022.]]>
