ANALYSIS OF THE RELATIONSHIP BETWEEN LIQUIDITY AND SOLVENCY RATIOS AS FINANCIAL PERFORMANCE INDICATORS AT PT ENSEVAL PUTERA MEGATRADING TBK 2015–2024

Abstract

This research investigates the correlation between liquidity and solvency ratios as measures of financial performance at PT Enseval Putera Megatrading Tbk over the 2015–2024 period. Liquidity indicates the firm’s capability to fulfill its short-term liabilities, whereas solvency demonstrates its ability to handle long-term financial commitments and maintain a stable capital structure. The study adopts a quantitative methodology utilizing secondary financial data and statistical analysis conducted through SPSS, encompassing descriptive statistics, the Kolmogorov–Smirnov normality test, and Pearson correlation analysis. The results show that liquidity and solvency have a strong negative correlation, indicating that higher liquidity levels tend to reduce the company’s dependence on debt financing. Overall, the findings suggest that PT Enseval Putera Megatrading Tbk has maintained a healthy financial position and an efficient balance between liquidity and solvency during the study period. This study offers valuable insight into the significance of effectively managing liquidity and leverage to maintain sustainable long-term financial stability.