LIQUIDITY AND SOLVENCY ANALYSIS THROUGH THE CURRENT RATIO AND DEBT TO EQUITY RATIO AT PT UNGGUL INDAH CAHAYA TBK FOR THE YEARS 2020–2024

Abstract

This study aims to analyze the liquidity and solvency levels of PT Unggul Indah Cahaya Tbk for the period 2020–2024 through the Current Ratio and Debt to Equity Ratio. The research method used is quantitative descriptive analysis, utilizing the company’s annual financial statements as data. The results show that the company’s Current Ratio increased each year, from 4.90 in 2020 to 6.92 in 2023, indicating an improvement in the company’s ability to meet its short-term obligations. Meanwhile, the Debt to Equity Ratio decreased from 0.22 in 2020 to 0.15 in 2023, suggesting that the company increasingly relies on its own capital rather than debt to finance its operations. Overall, the analysis indicates that the financial condition of PT Unggul Indah Cahaya Tbk during the research period was healthy and stable in terms of both liquidity and solvency.