ANALYSIS OF SOLVENCY AND PROFITABILITY RATIOS TO ASSESS THE FINANCIAL PERFORMANCE OF PT SAWIT DUTA PALMA

Abstract

The purpose of this study is to use profitability and solvency ratios to assess the financial performance of PT Sawit Duta Palma. A descriptive research design with a quantitative approach was used in this study. Based on the research results, the financial performance of PT Sawit Duta Palma from 2021 to 2023 shows outstanding achievements in profitability, asset utilization efficiency, and debt management. During this period, the company successfully increased its net profit margin from 10% to 40%, indicating excellent financial performance. Return on Assets (ROA) increased from 7% to 34%, reflecting improving efficiency in asset utilization. The recommendation is to continue monitoring and enhancing asset efficiency, as well as considering investments that can boost asset returns. Return on Equity (ROE) also saw a significant increase from 8% to 42%, indicating the company's ability to generate high equity returns.