Analyzing the Financial Performance of PT Gudang Garam Tbk by Utilizing Financial Ratios Period 2019 to 2023

Abstract

Financial performance is a snapshot of a company's financial condition over a specific period, reflecting its achievements in managing and controlling financial resources based on established standards and criteria to achieve corporate objectives. Two groups of financial ratios focused on in this analysis are solvency ratios and profitability ratios. The solvency ratio measures PT Gudang Garam Tbk's ability to meet its long-term obligations. Meanwhile, the profitability ratio measures PT Gudang Garam Tbk's ability to generate profit from its operational activities. This research adopts a descriptive method, with data collection techniques involving documentation, which entails recording and analyzing documents or archives relevant to the research problem. The solvency ratio, measured by the Debt to Asset Ratio and Debt to Equity Ratio, showed fluctuations during the period. Although the company's solvency ratios remain at a healthy level, the increasing trend in the proportion of debt in the company's capital structure warrants attention