Financial Ratio Analysis in Assesing the Financial Performance of PT Mandom Indonesia Tbk for the 2017-2024 Period

Abstract

This study aims to determine the financial condition of PT Mandom Indonesia Tbk over the last seven years, from 2017 to 2024. Several financial ratios were used to assess the company's finances, including liquidity ratios, solvency ratios, activity ratios, and profitability ratios. This study uses a descriptive quantitative method, with data obtained from the annual financial reports of PT Mandom Indonesia Tbk found on the official website of the Indonesia Stock Exchange (IDX). The results show that the liquidity ratio of PT Mandom Indonesia Tbk is in a healthy condition. This can be seen from the Current Ratio (CR) of 736.85%, Quick Ratio (QR) of 444.67%, and Cash Ratio of 239.76%. These three figures exceed the respective industry standards, namely Current Ratio of 200%, Quick Ratio of 150%, and Cash Ratio of 50%. The solvency ratios also indicate a healthy condition. The average Debt to Asset Ratio (DAR) is 36.36%, which is in line with the industry standard of 35%. Meanwhile, the Debt to Equity Ratio (DER) reaches 170.12%, which is higher than the industry standard of 90%. Activity ratios show good conditions, with Total Asset Turnover (TATO) at 20.65 times and Fixed Asset Turnover (FATO) at 48.72 times. Both figures are above the industry standards of 2 times and 5 times, respectively. Meanwhile, the profitability ratio reflects an unhealthy condition. This can be seen from the Gross Profit Margin (GPM) of 57.76%, which although it meets the industry standard of 30%, the Net Profit Margin (NPM) is only 0.00%, which is far below the industry standard of 20%. Return on Assets (ROA) is also 0.00%, which is well below the industry standard of 30%. Meanwhile, Return on Equity (ROE) of 21.37% is still below the industry standard of 40%.