FINANCIAL PERFORMANCE EVALUATION OF PT MEDCO ENERGI INTERNASIONAL TBK

Abstract

This study aims to evaluate the financial performance of PT Medco Energi Internasional Tbk (MEDC) from 2015 to 2024 using financial ratio analysis. As a major player in Indonesia's energy sector, MEDC operates in a dynamic environment characterized by global commodity price volatility and energy transition pressures. The research employs a descriptive quantitative method, analyzing secondary data from the company's annual financial reports. Key ratios assessed include liquidity (Current Ratio, Quick Ratio, Cash Ratio), profitability (Net Profit Margin, Gross Profit Margin, Return on Equity, Return on Investment), solvency (Debt to Asset Ratio, Debt to Equity Ratio), and activity ratios (Inventory Turnover, Total Asset Turnover). The findings indicate that MEDC maintains adequate average liquidity (CR 156.17%, QR 147.56%) and a strong Gross Profit Margin (42.43%). However, the company exhibits high solvency risk with a high Debt to Asset Ratio (0.75x) and Debt to Equity Ratio (3.06x), significantly exceeding safe industry standards. Furthermore, profitability metrics such as Return on Equity (14.45%) and Return on Investment (3.64%) are suboptimal, while asset utilization efficiency is low (Total Asset Turnover 0.24x). The study concludes that while MEDC demonstrates operational strength in certain areas, its high leverage and low asset efficiency pose significant financial risks. The results offer valuable insights for management, investors, and regulators in strategic decision-making and risk assessment within the volatile energy industry.