ANALYSIS OF LIQUIDITY, SOLVENCY, ACTIVITY, AND PROFITABILITY RATIOS TO MEASURE THE FINANCIAL PERFORMANCE OF PT MITRA ADIPERKASA Tbk FOR THE PERIOD 2015–2024

Abstract

This study aims to comprehensively analyze the financial performance of PT Mitra Adiperkasa Tbk for the period 2015–2024 using four key financial ratio categories: liquidity, solvency, activity, and profitability ratios. The purpose of this research is to assess the company’s financial condition, evaluate its ability to meet short- and long-term obligations, measure operational efficiency, and determine its capacity to generate profits.

The research uses a quantitative descriptive approach, employing data from the company’s annual financial statements obtained from official sources such as the Indonesia Stock Exchange and the company’s annual reports. The analysis applies financial ratio calculations, including the Current Ratio (CR), Debt to Equity Ratio (DER), Debt to Asset Ratio (DAR), Total Asset Turnover (TATO), Fixed Asset Turnover (FATO), Gross Profit Margin (GPM), Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE).

The results show that PT Mitra Adiperkasa Tbk’s liquidity ratios—measured through the Current Ratio, Quick Ratio, and Cash Ratio—generally remained below industry standards, indicating limited ability to meet short-term liabilities. The solvency ratios recorded high DER and DAR values, signifying heavy dependence on debt financing and an unbalanced capital structure. The activity ratios, represented by TATO and FATO, were negative throughout the observed period, suggesting low asset efficiency and unproductive operational performance.

In contrast, the company’s profitability ratios showed mixed results: the Gross Profit Margin (44.7%) consistently exceeded the industry benchmark of 30%, indicating strong gross profit generation, while the Net Profit Margin, ROA, and ROE were below the healthy standard, reflecting weak overall profitability and capital efficiency.

Overall, PT Mitra Adiperkasa Tbk’s financial performance during 2015–2024 can be categorized as fair but unstable. The company has maintained a strong gross profit level; however, it needs to improve cash management, reduce debt dependency, and enhance operational efficiency to achieve a more sustainable and balanced financial condition. Strengthening capital structure, optimizing asset utilization, and improving profit management are essential steps to ensure long-term growth and competitiveness in Indonesia’s dynamic retail industry