Analysis Of Liquidity And Activity Ratios On Profitability As A Financial Performance Indicator Of PT. Ramayana Lestari Sentosa, Tbk For The Period 2015-2024

Abstract

This research aims to analyze the effect of liquidity and activity ratios on profitability as a financial performance indicator at PT Ramayana Lestari Sentosa Tbk during the period 2015-2024. The approach used for this study is a quantitative approach with secondary data in the form of annual financial reports published by the company. This analysis was conducted by calculating financial ratios, including the Current Ratio (CR), Quick Ratio (QR), Total Asset Turnover (TATO), Inventory Turnover (ITO), Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The results of this study indicate that the companies' liquidity conditions are in the healthy category, as shown by the Current Ratio (CR) with an average of 350.0% and the Quick Ratio (QR) with an average of 283.3%, which are well above industry standards. However, activity ratios such as Total Asset Turnover (TATO) show that asset utilization efficiency is still low, with an average of 0.43 times, which is far below the industry standard, while Inventory Turnover (ITO) shows efficient inventory management with an average of 31.5% above the industry standard. On the other hand, profitability ratios such as Return on Assets (ROA) with an average of 6.0%, Return on Equity (ROE) with an average of 0.6%, and Net Profit Margin (NPM) with an average of 6.9% indicate that profitability performance is below the industry standard, showing that the company has not been optimal in converting assets and capital into profits. In general, it can be concluded that PT Ramayana Lestari Sentosa Tbk has excellent liquidity, but PT Ramayana Lestari Sentosa Tbk still faces challenges in optimizing profitability. Therefore, strategies for more efficient asset management and innovation in operations are needed to strengthen financial performance in the future.