Financial Performance Evaluation Approach to Financial Ratios (Study at PT ABC Year 2014-2018)

Muhani, I Made Adnyana, Syamsu Alam and Muhammad Yunus Amar

The financial performance is the success of the company to generate profits, so it can see the prospects, growth, and potential developments in company by relying on existing resources. Company's financial performance can use financial ratios analysis. The results of research in 2014-2018 on average PT ABC’s liquidity ratio is less liquid, leverage ratio is less solvables, activity ratio very efficients, profitable ratio is less profitable. The advice given, the company should manage inventory because its value is very large, so that its not interfere with liquidity and can increase profits; more use of their own capital because if PT ABC liquidated is still able to cover its debt; operational costs must to be more controlled, so as to optimize company profitability. And for further researchers, it is hoped that should not only use financial ratio analysis, but also needs to apply the EVA method as a supporter.

Volume 12 | Issue 5

Pages: 422-439

DOI: 10.5373/JARDCS/V12I5/20201957