Abstract:
This study aims to analyse PT Pertamina's (Persero) financial statements from 2017
to 2021 in order to evaluate its financial performance using financial ratios. The
secondary data that used in this study are publicly collected from PT Pertamina's
official website. To evaluate the financial performance of a company, one of an
appropriate way is using the ratios of profitability, liquidity, activity, and solvency.
The four financial measures produce numerical results that indicate whether the
firm is undergoing solid or unstable financial conditions. The findings of this study
indicate that the profitability ratios, liquidity ratios, activity ratios and solvency
ratios of PT Pertamina (Persero) have fluctuating values. The values of the overall
profitability ratio is still not good because most of the profitability ratio values
worsened in 2017, 2019 and 2020. Even so, PT Pertamina (Persero) is able to pay
its long-term obligations and liabilities because the solvency ratio values tends to
improve, and are able to pay its short term debts because the liquidity ratio values
also tends to improve. However, all of the company's assets have not been used
optimally to generate income because the values of the activity ratio has decreased
in 2017, 2019 and 2021. The results of this research are expected to be used as
material for future assessments to improve PT Pertamina (Persero)'s financial
performance.
