THE EFFECT OF FINANCIAL RATIO ANALYSIS ON THE COMPANY'S FINANCIAL PERFORMANCE AT PT. PERKEBUNAN NUSANTARA IV (PTPN IV)

Abstract

Profit is often one measure of company performance, when the company earns high profits, it means that its performance is considered good and vice versa. Investors are very concerned about the company's ability to generate and increase profits. Financial statements are able to provide an idea of how much profit is earned in an entity in a certain period. With financial statements can also assess the company's performance. This study discusses the analysis of liquidity, solvency and profitability ratios. This study aims at how influential the ratio analysis is on the company's financial performance. The method applied to this study is the associative descriptive method. The data used in this study is secondary data, obtained from the annual financial statements from the official website of PTPN IV for the 2021-2022 period. The results show that there is an increase or decrease in the financial ratio in PTPN IV for the 2021-2022 period. From these results, it shows that there is an influence of ratio analysis on the company's financial performance. This is because financial reports can provide important information needed by all parties, especially for the progress of the company itself. Of course, this financial ratio analysis is able to have an influence on the company's financial performance.