COMPREHENSIVE ANALYSIS OF FINANCIAL RATIOS AS INDICATORS OF EFFICIENCY AND PROFITABILITY: A CASE STUDY OF PT TRIWALA MITRA BESTARI

Abstract

In the world of business and organizational management, budget efficiency is a crucial aspect that determines sustainability and operational effectiveness. Sound financial management not only aims to maintain financial stability but also contributes to enhancing overall performance. One widely used method for optimizing budget utilization is financial ratio analysis. This analytical approach plays a vital role in ensuring that available financial resources are allocated effectively to support business or operational activities that positively impact organizational performance. The financial ratios of PT Triwala Mitra Bestari for the period 2020–2024 reflect stable and positive performance. Liquidity and solvency ratios indicate a healthy financial condition in both the short and long term. Activity ratios suggest an increasing efficiency in asset utilization, while profitability ratios demonstrate the company’s strong ability to generate profits, despite experiencing some fluctuations. PT Triwala Mitra Bestari does not hold long-term debt; however, it does incur short-term liabilities related to software license stock as an authorized distributor, which are settled at the beginning of each month. In addition, the stability of the company’s financial ratios is supported by its secondary business in the IT sector, which typically requires minimal capital investment yet yields relatively high profitability. Overall, this analysis confirms that the company has been able to manage its finances effectively, thereby supporting its growth and maintaining competitive advantage.