FINANCIAL PERFORMANCE ANALYSIS BASED ON LIQUIDITY, SOLVENCY, AND DUPONT RATIOS AT PT CHAROEN POKPHAND INDONESIA 2015–2024

Abstract

This research attempts to look into the financial performance of PT Charoen Pokphand Indonesia Tbk from 2015 to 2024 using three financial ratio approaches: liquidity ratios, solvency ratios, and DuPont analysis. This study utilizes a descriptive quantitative research method, relying on secondary data collected from the company’s disclosed annual financial reports thru the Indonesia Stock Exchange (IDX). The analysis was conducted to assess the company's ability to meet short-term obligations, manage its capital structure, and measure profitability based on the efficiency of asset and equity utilization. The research results show that the company's liquidity level is very good, as indicated by an average current ratio of 236.11% and a quick ratio above the industry standard. From a solvency perspective, the average debt-to-asset ratio (DAR) of 29.62% indicates that most of the company's assets are financed by equity, while the debt-to-equity ratio (DER) shows a dependence on debt that is still within acceptable limits. DuPont analysis indicates a declining profitability trend, with an average return on assets (ROA) of 11.78% and an average return on equity (ROE) of 16.58%, although positive results are still being shown. Overall, the financial condition of PT Charoen Pokphand Indonesia Tbk is considered stable and healthy, but the company needs to improve operational efficiency and asset management to maintain long-term profitability.