Liquidity and Profitability Ratio Analysis to Assess Financial Performance of PT. Adhi Karya (Persero) Tbk. during the Periods of 2017 - 2021

This study aims to evaluate the financial performance of PT. Adhi Karya (Persero) Tbk., which is a prominent construction company in Indonesia, by employing liquidity and profitability ratio analysis. The research utilizes financial data from the company’s annual reports for the years 2017 to 2021, enabling an in-depth examination of the company’s liquidity position and profitability. The liquidity analysis involves the calculation of the current ratio, quick ratio, and cash ratio, providing insight into the company’s ability to meet its short-term obligations. Profitability analysis on the other hand focuses on key ratios such as gross profit margin, net profit margin, return on assets (ROA), and return on equity (ROE), which shed light on the company’s ability to generate profit and maximize shareholder value. The liquidity analysis reveals the company’s ability to maintain adequate liquidity to meet its short-term obligation. The profitability analysis provides insight into the company’s profitability trends, efficiency in generating profits from its operation, and ability to effectively utilize assets and equity. The result of the analysis can aid management in making informed decisions regarding financial planning, investment opportunities, and strategic initiatives. The study’s insight can also support investors, creditors, and other stakeholders in evaluating the company’s financial stability, risk profile, and growth potential.