COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE IN THE AUTOMOTIVE SECTOR: A CASE STUDY OF PT ASTRA INTERNATIONAL TBK AND PT GOOD YEAR INDONESIA TBK FOR THE PERIOD 2019–2024

Abstract

This study conducts a comparative analysis of the financial performance of PT Astra International Tbk and PT Goodyear Indonesia Tbk in the automotive sector during 2019–2024. The objective is to evaluate differences in liquidity, profitability, solvency, and market ratios to understand how company structure and strategy influence financial resilience amid postpandemic recovery and industrial transformation toward electric vehicles (EVs). The research adopts a quantitative comparative approach using secondary data from audited financial statements, analyzed through key financial ratios such as the Current Ratio, Net Profit Margin, Debt to Asset Ratio, and Price to Earnings Ratio.The results show that PT Astra International Tbk consistently maintains stable liquidity and profitability, supported by effective asset management, cost efficiency, and diversified operations across automotive distribution, heavy equipment, and financial services. Astra’s moderate debt ratio also reflects strong solvency and prudent capital management, enabling greater stability under market volatility. Conversely, PT Goodyear Indonesia Tbk demonstrates fluctuating liquidity and solvency, largely due to its high dependence on debt financing and sensitivity to raw material price changes. Its limited business diversification and inconsistent profitability indicate a weaker financial structure compared to Astra. Overall, the findings highlight that diversification, cost efficiency, and sound capital structure are critical to sustaining financial performance in Indonesia’s automotive industry. Astra’s stable ratios confirm the advantages of a diversified model, while Goodyear’s results
emphasize the need for stronger financial management and innovation. The study contributes practical insights for managers and investors regarding financial strategy, as well as theoretical evidence supporting the role of diversification and leverage optimization in long-term corporate stability.