Financial Comparison Analysis of PT AXA Mandiri Financial Services Before and After the Merger with AXA Indonesia

Abstract

This study aims to analyze the comparison of financial performance of PT AXA
Mandiri Financial Services before and after its merger with AXA Indonesia, in order
to evaluate whether the merger strategy strengthens the company’s capital structure
and competitiveness. The research applies financial ratio analysis using secondary
data from the Indonesia Stock Exchange, covering the period of 2018 as the pre-merger
year, 2019 as the transition period, and 2020 as the post-merger year. Financial
performance is measured through income statements and balance sheets with a focus
on profitability, activity, liquidity, and solvency ratios. The results show that from
eight ratios examined, six financial ratios declined after the merger, namely Net Profit
Margin, Gross Profit Margin, Total Assets Turnover, Fixed Assets Turnover, Debt to
Asset Ratio, and Debt to Equity Ratio. Meanwhile, two ratios, the Current Ratio and
Cash Ratio, improved after the merger was completed. These findings indicate that
although the merger was intended to strengthen financial performance and provide
competitive advantage, PT AXA Mandiri experienced a decrease in several key
aspects of financial performance after the merger compared to the period before. The
study concludes that management needs to reassess merger strategies or implement
more effective post-merger integration to optimize the expected synergies. The
findings also serve as useful information for investors to evaluate financial
performance more carefully when making investment decisions.