Analysis of Liquidity, Profitability and Solvency Ratio on Financial Performance (Case Study on PT. Gudang Garam TBK. 2019-2023 Period)

Abstract

This research employs a quantitative approach, focusing on PT. Gudang Garam Tbk. as the object of study. The research population consists of the company's financial reports, specifically the Balance Sheet and Profit and Loss Statement for the 2019 2023 period. The analyzed sample includes the financial statements of PT. Gudang Garam Tbk. over these five years. The data used is quantitative and sourced from the company’s official website (https://gudanggaramtbk.com/investor/). Data collection was conducted using documentation and literature study methods, while descriptive statistical analysis was applied as the analytical technique. The findings indicate that PT. Gudang Garam Tbk.’s financial performance, based on liquidity ratios measured through the current ratio, quick ratio, and cash ratio, has fluctuated. The current ratio remains at a satisfactory level, whereas the quick ratio and cash ratio fall into a weaker category. Additionally, the profitability ratio assessed through net profit margin, return on equity, and return on investment reflects suboptimal outcomes. Meanwhile, solvency ratios including the debt to assets ratio, debt to equity ratio, and times interest earned ratio indicate unfavorable conditions throughout the 2019 2023 period