MEASURING THE FINANCIAL PERFORMANCE OF IFISHDECO COMPANY BASED ON SOLVENCY RATIO

Abstract

This study aims to measure and analyze the financial performance of PT
IFISHDECO Tbk using solvency ratios as the main indicator of the company's ability
to meet its long-term obligations. The research method applied is quantitative
analysis using secondary data taken from the company's annual financial reports for
2020 and up to 2024. The solvency ratios analyzed include Debt to Asset Ratio
(DAR), Debt to Equity Ratio (DER), Equity Ratio (ER), Long-term Debt to Equity
Ratio (LDER), Times Interest Earned (TIE), Cash Coverage Ratio (CCR), and Debt
Service Coverage Ratio (DSCR). The results of the analysis show that PT IFISHDECO
has a significant dependence on debt financing, which poses financial risks that need
to be managed carefully. The company's DER ratio has increased from the previous
year, indicating high leverage in business expansion. The conclusion of this study
emphasizes the importance of regularly managing solvency ratios to maintain
financial stability and support the company's business continuity. These findings
provide strategic considerations for management and stakeholders in making
appropriate financial decisions to face future economic challenges.