ANALYSIS OF LIQUIDITY SOLVENCY AND ACTIVITY ON THE OF FINANSIAL PERFORMANCE AT PT TRANCOAL PACIFIC TBK

Abstract

This study aims to analyze the effect of liquidity, solvency, and activity on the efficiency of financial performance at PT Transcoal Pacific Tbk. The research was conducted using a quantitative descriptive method by analyzing the company’s financial statements over a period of several years. The liquidity ratio was measured through the current ratio, solvency through the debt-to-equity ratio, and activity through the total asset turnover ratio. The analysis focused on evaluating how effectively the company manages its assets, liabilities, and capital structure to achieve financial efficiency. The results showed that liquidity has a significant role in determining the company’s ability to meet short-term obligations, while solvency reflects the company’s long-term financial stability. The activity ratio indicates how efficiently the company utilizes its assets to generate revenue. Overall, the study found that PT Transcoal Pacific Tbk maintained a stable financial performance, although fluctuations in certain ratios suggested the need for improved asset management and debt control. These findings contribute to a better understanding of how financial ratios can be used as indicators of corporate performance efficiency and provide useful insights for stakeholders in decision-making processes