FINANCIAL PERFORMANCE ANALYSIS IN ASSESSING THE EFFECTIVENESS OF FINANCIAL MANAGEMENT OF PT ISLAND CONCEPTS INDONESIA TBK FOR THE PERIOD 2015–2024

Abstract

This study aims to analyze the financial performance of PT Island Concepts Indonesia Tbk during the period 2015–2024 to evaluate the effectiveness of its financial management. The analysis focuses on three main aspects, namely profitability, solvency, and liquidity. The data used in this research were obtained from the company’s annual financial statements and processed using quantitative methods with descriptive ratio analysis. The results show that the company’s profitability, as reflected in ROA, ROE, and NPM, remains below ideal benchmarks, indicating limited efficiency in utilizing assets and generating shareholder returns. However, the Gross Profit Margin consistently exceeds the standard, which reflects good control over operational costs. The solvency ratios, including the Debt to Asset Ratio and Debt to Equity Ratio, are within safe levels, demonstrating prudent debt management and a balanced capital structure. Meanwhile, the liquidity ratios indicate a relatively healthy financial condition, although a decline occurred in the final years of observation. Overall, the financial performance of PT Island Concepts Indonesia Tbk is considered moderately effective, with the main challenges found in improving profitability and maintaining liquidity stability. Strengthening asset utilization, enhancing capital efficiency, and optimizing working capital management are essential strategies for achieving sustainable financial performance in the future.