Analysis of Liquidity Ratios, Solvency Ratios, and Profitability Ratios to Assess the Financial Performance of PT X for the Period 2014-2023
Abstract
This study aims to analyze the financial performance of PT Adaro Energy Indonesia Tbk for the 2014-2023 period using liquidity ratios, solvency ratios, and profitability ratios. This analysis is conducted to understand the company’s overall financial condition and observe its performance trends over time. Methodology/approach – This research uses a quantitative descriptive method with a case study approach at PT Adaro Energy Indonesia Tbk. The data used are secondary data in the form of the company’s annual financial reports for the period 2014-2023 obtained from the official website of the Indonesia Stock Exchange (IDX) and the company’s website. Findings – It was found that . PT Adaro Energy Indonesia Tbk’s liquidity ratio was at a healthy and stable level throughout the study period. The sulvency ratio demonstrates the company’s ability to adequately meet its long-term obligations, despite fluctuations in its debt-to-equity ratio. Meanwhile, the company’s profitability ratio was below the industry average, indicating suboptimal profit performance compared to competitors. Novelty/value – This study is novel in that it uses a long analysis periode (2014-2023) to assess financial perfomance trends following changes in PT Adaro Energy Indonesia Tbk’s business strategy, including energy transition efforts. Furthermode, this study compares financial ratio results directly with relevant energy sector industry standards, a practice rarely used in previous studies.
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