PROFITABILITY RATIO ANALYSIS AS MEASUREMENT TOOL OF FINANCIAL PERFORMANCE, STUDY CASE OF PT PERTAMINA (PERSERO)

• Main Author: Puspita Sari, Bianda
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/55590
• Institution: Institut Teknologi Bandung

Financial performance is one of the most critical things in a company, for both internal and external. In measuring economic performance, financial statements are crucial benchmarks in assessing how the company can survive in the coming period. One way to calculate this financial performance is by utilizing a profitability ratio calculation, with Du Pont analysis as a tool for the method. Pertamina has experienced a significant problem, namely the decline in the company's ROI in recent years. The primary assumption that caused this problem was the Covid-19 pandemic, followed by other problems, namely the decline in oil and gas prices and the decline in the value of the rupiah against the US Dollar. The problem formulation of this research is how the financial performance of PT Pertamina (Persero) during 2015 – 2019 based on Gross Profit Margin, Operating Profit Margin, Return on Investment, Return, on Equity, Return on Assets, Net Profit Margin, and Total Asset Turnover; how is the operation of PT Pertamina (Persero) to maintain the company's financial performance; and how is the managerial system of PT Pertamina (Persero) to maintain the company's financial performance. With the aim of research to know the analysis, calculation, and assessment of the formulation of this research problem. This research is quantitative research with descriptive analysis method with secondary data acquisition. The descriptive analysis technique is an analysis used to process data by describing or describing the collected data without intending to make generalized conclusions or generalizations. Descriptive research can describe sample data and does not want to make conclusions that apply to the population in which the sample is drawn. Using secondary data in question is a data source that does not directly provide data to other people. For example in this study using financial statements as the source of data. From the research results that have been carried out using profitability ratio analysis, it is concluded that PT Pertamina (Persero) is declared unable to achieve a profit value following industry standards. All the ratio calculations of GPM, OPM, ROI, ROE, ROA, NPM, and TATO are below average. With this, the researcher suggests that PT Pertamina (Persero) can improve its financial performance by improving how expenses that should be minimized can be minimized to find ways to provide better benefits. PT Pertamina (Persero) can improve its internal company by motivating employees and guiding employees to be able to work according to targets, reviewing the planned target strategy so that evaluations can be carried out to improve conditions in the future.