ANALYSIS OF LIQUIDITY, ACTIVITY, AND SOLVENCY IN ASSESSING PT MITRABAHATERA SEGARA SEJATI TBK’S FINANCIAL STABILITY

Abstract

This study looks at how liquidity, activity, and solvency relate to the financial health of PT Mitrabahtera Segara Sejati Tbk between 2020 and 2024. The research uses a quantitative descriptive approach with data from the company’s annual financial reports, which have been converted into US dollars. To measure liquidity, we look at the Current Ratio, Quick Ratio, and Cash Ratio. For activity, we use Cash Turnover, Receivable Turnover, Inventory Turnover, Fixed Asset Turnover, and Total Asset Turnover. Solvency is measured using the Debt to Equity Ratio, Debt Ratio, Equity Ratio, and Times Interest Earned. The findings show that the company has strong liquidity and solvency, as seen in high current and cash ratios, low debt levels, and a solid capital structure. This means the company can easily pay its short-term and long-term bills. However, the activity ratios suggest that the company isn’t using its assets efficiently and that cash, receivables, and inventory are moving slowly. These results show that even though the company is financially stable, it needs to improve how it runs its operations to make more profit and stay sustainable in the long run. In general, this study says that having good liquidity and solvency is key to keeping the company's finances strong, but making better use of assets is also very important for the company to grow.