The EVALUATION OF FINANCIAL PERFORMANCE OF PT INDOMOBIL SUKSES INTERNASIONAL TBK 2020-2023 THROUGH PROFITABILITY AND SOLVENCY RATIO ANALYSIS

Abstract

Evaluating financial performance is essential to assess a company's competitiveness and sustainability, especially in the highly competitive and challenging automotive industry. The financial performance of PT Indomobil Sukses Internasional Tbk, one of the leading automotive companies in Indonesia, needs to be examined comprehensively. This study aims to assess the company's financial performance over the 2020–2023 period using profitability and solvency ratio analysis. The profitability ratios used include Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE), while the solvency ratios analyzed are Debt to Equity Ratio (DER) and Debt to Asset Ratio (DAR). The data were obtained from the annual financial reports published by the Indonesia Stock Exchange (IDX). The results show that the company's profitability remains below industry standards, indicating suboptimal performance in generating profits from its assets and equity. In terms of solvency, the company exhibits a high level of debt reliance, which may increase its financial risk in the long term.

Keywords: Financial Performance, Profitability, Solvency.