ANALYSIS OF LIQUIDITY, SOLVENCY, ACTIVITY, AND PROFITABILITY RATIOS TO MEASURE FINANCIAL HEALTH OF PT PROTECH MITRA PERKASA TBK (2017–2024)

Abstract

This study aims to analyze the financial performance of PT Protech Mitra Perkasa Tbk during the period 2017–2024 through financial ratio analysis, which includes liquidity, activity, solvency, and profitability ratios. The research method used is quantitative descriptive with secondary data obtained from the company's annual financial reports. The objectives of this study are to assess the company's ability to meet its short-term obligations, manage assets efficiently, maintain capital structure stability, and generate profits sustainably. The results show that the liquidity ratio fluctuated significantly, with strong performance in 2021 but a sharp decline in 2022, indicating unstable short-term financial conditions. The activity ratio, measured by cash turnover, indicates inefficient cash management during the research period. The solvency ratio (DER) is generally at a low level, reflecting low dependence on debt, although there was a sharp increase in 2022, indicating potential financial risk. Meanwhile, the profitability ratio (GPM) tended to decline and even showed losses in some years, indicating a decline in operational efficiency and profit-generating ability. Overall, the financial performance of PT Protech Mitra Perkasa Tbk during 2017–2024 can be categorized as unstable, with a liquidity level that