Financial Statement Analysis to Assess Company Financial Performance (Study of PT. Asiaplast Industries Tbk, 2020-2024 Period)

Abstract

This study aims to analyze the financial performance of PT Asiaplast Industries Tbk during the period 2020–2024 using financial ratio analysis, which includes liquidity, activity, solvency, and profitability ratios. The research method used is a quantitative descriptive method with secondary data obtained from the company's financial reports published on the Indonesia Stock Exchange (IDX). The results of the analysis show that the company's financial performance fluctuated during the research period. The liquidity ratio, measured by the Current Ratio (CR), increased from 1.59 in 2020 to 4.09 in 2024, indicating an increase in the company's ability to meet its short-term obligations. The Total Asset Turnover (TATO) ratio fluctuated, peaking at 0.79 in 2022 before declining to 0.55 in 2024, indicating instability in asset utilization efficiency. Meanwhile, the Debt to Equity Ratio (DER) declined consistently from 0.97 to 0.35, reflecting a more stable capital structure and increased financial independence. The Return on Equity (ROE) ratio showed strong growth in 2022 but declined again in 2024, signaling pressure on profitability due to increased operating costs and a decline in sales volume. Overall, the company's financial condition shows improvement in terms of liquidity and solvency, although operational efficiency and profit stability remain major challenges. These findings are expected to serve as considerations for management in making strategic decisions and provide insight for investors in assessing the sustainability of the company's financial performance.