Analysis of Financial Performance: Evidence from Food and Beverage Companies in Indonesia
This research was conducted to determine the company's financial performance in the food and beverage sub-sector which was assessed based on financial ratio analysis. The focus of this research is financial performance which can be measured by four types of financial ratio analysis, namely Liquidity Ratios consisting of; Net Working Capital, Current Ratio, Quick Ratio, and Cash Ratio, then Solvency Ratio consisting of; Debt Ratio, Debt to Equity Ratio, Debt Interest Ratio to Equity, then Profitability Ratio consisting of; Net Profit Margin, Gross Profit Margin, Return on Investment, Return on Equity, and the last is the Activity Ratio consisting of; OIROI, Operating Profit Margin, Working Capital Turnover, Total Assets Turnover. The analytical method used is the ratio analysis method. The results showed that the average company performance in the food and beverage sub-sector was quite good, although it was strongly influenced by the scale and size of the company. Companies in the food and beverage sub-sector are categorized as liquid companies because they are able to pay off all obligations (debts) that must be fulfilled immediately in the short term. From the level of fulfilling both short and long term obligations, the average company in the food and beverage sub-sector is included in the category of solvable companies. Likewise in terms of profit, the average company in the food and beverage sub-sector is included in the company category of profit. From the aspect of activities even companies in the food and beverage sub-sector are good enough to carry out operations efficiently, although there are some companies that are very effective at managing capital, even with small numbers but get high sales figures.