Nurhalija, Alimuddin

Ratio analysis of financial statements for performance assessment

Introduction

Ratio analysis of financial statements for performance assessment . Analyze financial statements of PT Indofood Sukses Makmur Tbk and PT Mayora Indah Tbk (2021-2022) using ratio analysis. Discover strong financial performance, good liquidity, and increasing profitability.

Abstract

This study aims to analyse financial statements to assess the financial performance and identify the years in which PT Indofood Sukses Makmur Tbk and PT Mayora Indah Tbk demonstrated strong performance. The research was conducted by analysing annual financial reports, and the research type used is descriptive analysis. The data used is secondary data, namely data obtained from company records and presented as period financial reports. Furthermore, the author's data analysis technique uses financial ratio analysis tools on the data. The overall research results of PT Indofood Sukses Makmur Tbk and PT Mayora Indah Tbk for the period 2021-2022 are considered good because the company shows that its current assets exceed its current liabilities so that the company has no difficulty in paying off its current liabilities. The companies PT Indofood Sukses Makmur Tbk and PT Mayora Indah Tbk generate profits quite well, where the company's total invested assets continue to increase so that the company shows improvement.

Review

This manuscript outlines a study aimed at assessing the financial performance of two significant Indonesian consumer goods companies, PT Indofood Sukses Makmur Tbk and PT Mayora Indah Tbk, using ratio analysis. The chosen methodology, employing descriptive analysis of secondary data from annual financial reports, is appropriate for an initial assessment of financial health. The research addresses a relevant and practical topic in corporate finance, demonstrating the application of fundamental analytical tools. The clarity in stating the research objective and the specific companies under scrutiny are commendable, providing a focused scope for the investigation. However, several areas warrant deeper consideration to enhance the study's robustness and contribution. Primarily, the analysis period of merely 2021-2022 is notably short for a comprehensive performance assessment, especially when aiming to identify "years of strong performance" or meaningful trends. A more extensive historical data set (e.g., 5-10 years) would provide a more reliable basis for evaluation and trend identification. Furthermore, while the abstract indicates "good" performance and increasing invested assets, the summary of results lacks detailed quantitative support. The specific financial ratios employed (beyond the general mention of current assets exceeding liabilities) are not elaborated upon, nor is there a discussion of their trends or comparisons against industry benchmarks or competitors, which would significantly strengthen the descriptive analysis. In conclusion, the study presents a foundational application of financial ratio analysis to assess corporate performance, offering preliminary insights into the short-term financial standing of PT Indofood Sukses Makmur Tbk and PT Mayora Indah Tbk. To elevate its academic and practical value, future iterations or the full paper should consider extending the analysis period, incorporating a broader and more specific set of financial ratios, and including comparative analysis to provide a richer context for the performance assessment. More detailed quantitative findings and an in-depth discussion of their implications would transform this descriptive study into a more impactful contribution to the field of financial analysis.

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