Financial Performance Evaluation: Evidence of Metal and Mineral Mining Companies in Indonesia

Abstract

The research objective was to analyze the financial performance of the mining companies of the Metal and Mineral sub-sectors listed on the Indonesia Stock Exchange in the 2014-2018 period. The performance evaluation method uses ratio analysis, which consists of ratios; Liquidity, activity, solvency and profitability. The results of the calculation of the liquidity ratio show that the company's ability to pay short-term loans from the company is getting better. The activity ratio shows that the company's ability to manage inventories to make materials better. The solvency ratio indicates that the amount of debt in the company is getting bigger and it is a heavy burden for the company to pay it. The profitability ratio provides positive expectations for shareholders because the company's ability to obtain higher profits both from capital and from company assets.

Keywords: Financial performance, activity ratios, solvency ratios, liquidity ratios, profitability Ratios