International Journal of Education.
Social Studies.
And Management (IJESSM) e-ISSN : 2775-4154 Volume 5.
Issue 1.
February 2025 The International Journal of Education.
Social Studies, and Management (IJESSM) is published 3 times a year (February.
Juny.
Novembe.
Focus : Education.
Social.
Economy.
Management, and Culture.
LINK : http://lpipublishing.
com/index.
php/ijessm Finacial Statemen Anaylisis to Assess Financial Performance PT.
Ultrajaya Milk Industri & Trading Company TBK Ayu Ashari Pasaribu1.
Muhammad Ismail2.
Handriyani Dwita3 1,2,3 Universitas Pembangunan Panca Budi.
Indonesia
ARTICLE INFO
Article history:
Received 10 November 2024 Revised 26 Desember 2024 Accepted 25 January 2024 Keywords Corresponding Author :
ABSTRACT
Financial Performance Assessment is based on increased sales.
It can be reflected i n a report, a report describing the progress of the company's financial performance in a certain period.
Such reports are commonly called financial statements.
In orde r for financial statements to be meaningful to the interested parties it is necessary t o analyze the relationship of the posts in the financial statements are often called fi nancial statement analysis.
The purpose of this study is to know how the financial performance of PT.
Based on the analysis of liquidity ratio, solvency, activity and profitability.
The data analysis method used is descriptive quantitative method usin g liquidity ratio measurement, solvency, activity and profitability.
Based on the ov erall liquidity ratio, the company is in good condition except for cash ratio in 2022, although over the period of 2021-2023 fluctuates.
Based on the sovency ratio of t he company's state in solvable position, because the company's capital is in suffici ent state to guarantee the debt given by the creditors.
Based on the overall activity ratio is quite good.
Based on the overall profitability ratio of the company is in a b ad position.
Financial Ratios.
Financial Reports.
Financial Performance.
ayupasaribu1506@gmail.
INTRODUCTION
One of the main objectives of establishing a company is to enhance its value by maximizing profits, thereby improving the welfare of its owners (Rianingsih.
Wijaya, & Ati, 2.
Companies with good financial performance and corporate values are considered capable of sustaining growth (Saibah & Asikin, 2.
Increasing company value over the long term is one of the primary goals of a business (January, 2.
Company value is often assessed through financial performance, as it significantly influences investor perceptions (Zainab & Burhany, 2.
Financial performance can be evaluated using various financial ratios.
According to Sujairweni .
, financial statement analysis involves assessing an entity's financial condition, past performance, and future projections to International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 5.
Issue 1.
February 2025 Page 225-231 determine its current status and predict its future potential.
Furthermore.
Subrambung .
describes financial statement analysis as the application of tools and techniques to examine financial reports, aiming to generate useful estimates and conclusions for business analysis.
Based on these explanations, financial statement analysis serves as a critical method for evaluating financial data to assess an entity's performance, facilitating informed decision-making for Performance is a broad term used to describe an organizationAos activities within a certain period, often measured against standards such as past costs, projected costs, efficiency, and accountability (Ningsih & Hariyati, 2.
Company performance reflects the overall state of a business over a given period, influenced by its operational activities and resource utilization (Tsani.
Evaluating a company's performance often involves analyzing its financial condition through financial statement assessments.
Several key factors impact corporate performance, including organizational support, managerial ability, and the performance of individual Financial performance, in particular, can be analyzed using financial ratios such as liquidity, solvency, activity, and profitability.
Liquidity ratios assess a company's ability to meet short-term financial obligations, while solvency ratios measure its capacity to handle long-term liabilities (Anifa, 2.
Maintaining financial performance stability is essential for a company's long-term success.
A decline in financial performance can lead to difficulties in operational financing, ultimately affecting sales volume.
Reduced sales can lower profits, and if this trend continues, a company may face financial Enhancing company value is expected to improve the company's ability to meet stakeholder expectations and ensure sustainable growth.
RESEARCH METHOD
This research employs quantitative data, which consists of numerical values obtained through the measurement of one or more variables in a sample or population.
The data used in this study comes from two sources: primary data, which is collected directly from the official website of PT.
Ultrajaya Milk Tbk, and secondary data, which includes an overview of the company and its financial statements for the years 2021-2023, covering the balance sheet and income statement.
The population in this study consists of the financial reports of PT.
Ultrajaya Milk Tbk, which are crucial for analysis.
According to Sugiyono .
AuThe population is a generalization region consisting of objects or subjects with specific qualities and characteristics determined by the researcher International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 5.
Issue 1.
February 2025 Page 225-231 for study and conclusion drawing.
Ay The sample in this research comprises financial reports from the past three years .
1, 2022, and 2.
The study applies a descriptive quantitative approach to analyze financial statements using relevant financial ratios, which assess the company's liquidity, solvency, activity, and profitability.
RESULT AND DISCUSSION
Table 1.
Financial Statements of PT.
Ultrajaya Milk Tbk .
n Million Rupia.
Year Total Assets 7,406,856 7,376,375 7,523,956 Current Assets 4,844,821 4,618,390 2,174,324 Cash and Cash Equivalents 1,598,901 1,248,642 626,507 Trade Receivables 626,006 617,192 710,304 Inventories 681,983 1,637,361 1,431,226 Non-Current Assets 2,562,035 2,757,985 3,112,481 Fixed Assets (Ne.
2,165,353 2,260,183 2,346,120 Deferred Tax Assets 14,039 13,267 8,191 Other Assets 67,221 186,816 389,355 Liabilities 2,268,730 1,553,696 836,988 Current Liabilities 1,556,539 1,456,898 713,393 Trade Payables 393,174 625,235 465,275 Taxes Payable 84,140 39,078 83,488 Accrued Expenses 895,320 598,319 151,012 Non-Current Liabilities 712,191 96,798 123,595 Shareholder Capital 577,676 577,676 519,909 Revenue 1,521,095 1,836,873 2,234,198 Cost of Goods Sold
975,393
1,221,432 1,493,902
Gross Profit
545,702
615,441
740,296
Operating Expenses 144,043 183,597 194,434 Operating Profit
533,800
406,121
457,443
Other Income (Expens.
Profit Before Taxes 509,661 386,804 461,172 Comprehensive Profit
404,240
300,713
356,032
Table 2.
Liquidity Ratios Ratio Type Current Ratio 11 times 3.
17 times 6.
18 times Quick Ratio 67 times 2.
04 times 4.
17 times Cash Ratio 04 times 0.
85 times 3.
04 times Cash Turnover 46 times 0.
58 times 0.
60 times Inventory to Net Working Capital 0.
20 times 0.
51 times 0.
38 times International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 5.
Issue 1.
February 2025 Page 225-231 The current ratio increased from 3.
11 times in 2021 to 3.
17 times in 2022 and significantly to 6.
18 times in 2023, indicating good liquidity but inefficient asset utilization.
The quick ratio declined in 2022 but improved again in 2023, following a similar trend to the cash ratio, which dropped in 2022 but recovered The cash turnover ratio showed steady growth, reflecting better cash Inventory to net working capital fluctuated, increasing in 2022 but decreasing again in 2023.
Table 3.
Solvency Ratios Ratio Type Debt to Assets Ratio 30 times 0.
21 times 0.
11 times Debt to Equity Ratio Long-Term Debt to Equity Ratio 0.
Times Interest Earned 18 times 13 times 36 times Fixed Charge Coverage 7 times 10 times 8 times The debt-to-assets ratio decreased yearly, improving financial stability.
The debt-to-equity ratio also declined, indicating a reduced dependency on debt financing.
The times interest earned ratio fell in 2022 but significantly improved in 2023, suggesting increased profitability.
Table 4.
Activity Ratios Ratio Type Receivable Turnover 2 times 2.
6 times 2.
9 times Days of Receivables 165 days 140 days 125 days Inventory Turnover 2 times 1.
1 times 1.
56 times Days of Inventory 164 days 321 days 230 days Working Capital Turnover 0.
31 times 0.
39 times 0.
50 times Fixed Assets Turnover 59 times 0.
66 times 0.
71 times Total Assets Turnover 20 times 0.
24 times 0.
29 times Receivable turnover improved over the years, while inventory turnover declined in 2022 but slightly improved in 2023.
Working capital turnover showed a steady increase, but fixed assets turnover and total assets turnover remained below industry standards, indicating inefficient asset utilization.
Table 5.
Profitability Ratios Ratio Type Profit Margin Net Profit Margin Return on Investment (ROI) 5% International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 5.
Issue 1.
February 2025 Page 225-231 Return on Equity (ROE) Earnings Per Share Rp.
10,422.
07 Rp.
10,626.
35 Rp.
10,531.
The net profit margin declined from 26% in 2021 to 16% in 2022 and remained stagnant in 2023, falling below the industry average.
ROI and ROE also saw a decline, reflecting weaker profitability.
However, earnings per share increased in 2022 before slightly decreasing in 2023.
Overall.
PT.
Ultrajaya Milk Tbk demonstrated strong liquidity but showed inefficiencies in asset utilization and declining profitability ratios, indicating potential areas for financial improvement.
CONCLUSION
Based on the financial analysis of PT.
Ultrajaya Milk Tbk for the years 2021-2023, several key insights can be drawn regarding the companyAos financial In terms of liquidity, the company demonstrated an increasing trend in its current ratio, quick ratio, and cash ratio, indicating improved short-term However, the sharp increase in the current ratio suggests that the company may not be utilizing its assets optimally.
Regarding solvency, the debt-to-assets and debt-to-equity ratios showed a significant decline, reflecting reduced reliance on external financing.
This indicates a strong financial position, as the company has progressively reduced its liabilities relative to assets and equity.
For activity ratios, receivables turnover and inventory turnover showed The receivables turnover ratio improved, meaning the company is collecting payments more efficiently.
However, inventory turnover decreased in 2022 before recovering in 2023, which suggests variations in inventory management effectiveness.
In profitability, the company experienced a decline in profit margin, return on investment (ROI), and return on equity (ROE), indicating challenges in maintaining profitability despite revenue growth.
While the earnings per share (EPS) increased in 2022, it declined slightly in Overall.
PT.
Ultrajaya Milk Tbk has shown positive improvements in liquidity and solvency but faces challenges in optimizing asset utilization and maintaining profitability.
Future strategies should focus on improving operational efficiency, asset management, and cost control to enhance profitability and sustain financial growth.
International Journal of Education.
Social Studies.
And Management (IJESSM) Volume 5.
Issue 1.
February 2025
Page 225-231
REFERENCES