Levels of the company’s ability to continue to compete is determined by the performance of the company itself. The Company is not able to compete in maintaining its performance will gradually displaced from its industrial environment and will face bankruptcy, so that the survival of a company can be reached, then management must improve its performanceThe ï¬ÂÂÂnancial statements are a source of information about the company’s ï¬ÂÂÂnancial position, performance and changes in ï¬ÂÂÂnancial position, which is very useful to support decision making. Information presented in order to become more useful in decision making, ï¬ÂÂÂnancial data must be converted into useful information in making economic decisions. It is reached by way of analyzing the ï¬ÂÂÂnancial statements.Company performance can be determined from the analysis of ï¬ÂÂÂnancial statements, ï¬ÂÂÂnancial statements and analysis to interpretation in essence is to conduct an assessment of potential or ï¬ÂÂÂnancial performance and progress of a ï¬ÂÂÂrm through ï¬ÂÂÂnancial statements, and of those statements can be made through the analysis of ï¬ÂÂÂnancial ratios. Financial ratio analysis is an alternative to test whether ï¬ÂÂÂnancial information useful for classiï¬ÂÂÂcation or prediction of a company’s ï¬ÂÂÂnancial condition. Key ï¬ÂÂÂnancial ratios to be analyzed because of ï¬ÂÂÂnancial ratios affect the ï¬ÂÂÂnancial performance of companies that are formed from elements of ï¬ÂÂÂnancial statements which, when interpreted to obtain information about the company’s ï¬ÂÂÂnancial condition in a given period so as to provide input and suggestions for the company.