The Importance of Financial Ratio Analysis in Business

Oct 13, 2025 by magicalceylontours.com 71 views

Analysis of Financial Ratios at PT. Jasa Marga (Persero) Tbk Belmera Branch Period 2015 - 2017

The Importance of Financial Ratio Analysis in Business

In the business world, every company strives to achieve its main goal: making a profit. To achieve this, good financial management is crucial. Analysis of financial statements allows companies to evaluate and understand their ability to overcome various financial problems. The making of financial statements is not just a formality, but a crucial thing that provides a comprehensive picture of the results of business, financial position, and the company's financial changes. However, this information will be more meaningful if an in-depth analysis of the actual financial condition is carried out. The results of this analysis not only function as a measurement tool to assess business progress, but also as a basis for decision making for company management.

Understanding PT. Jasa Marga (Persero) Tbk Belmera Branch

PT. Jasa Marga (Persero) Tbk Belmera Branch is a State-Owned Enterprise (BUMN) registered as a public and engaged company in the field of development and toll road operation. The company was established with the aim of providing services to the community in terms of providing freeway, or better known as toll roads. With the existence of toll roads, it is expected that congestion in urban areas, which is often dense, can be reduced. As a toll road service provider, PT. Jasa Marga (Persero) Tbk Belmera Branch plays a vital role in supporting the country's economic growth.

The Role of Financial Ratio Analysis in PT. Jasa Marga (Persero) Tbk Belmera Branch

Analysis of financial ratios is a technique used to evaluate the performance and financial condition of a company by comparing the numbers in the financial statements. In the context of PT. Jasa Marga Belmera Branch, this analysis is very relevant to understand how the company is able to manage its assets and liabilities, as well as how efficient they are in using existing resources. By analyzing financial ratios, management can identify areas of improvement, make informed decisions, and develop strategies to enhance the company's financial performance.

Types of Financial Ratios

The financial ratios that are often analyzed include:

Liquidity Ratio: Measuring the company's ability to fulfill its short-term obligations. This ratio is important to assess company liquidity and ensure that the company can meet the due debt.
Profitability Ratio: Shows how well the company is in generating profits from its income. This is very important for companies that aim to increase the value of shareholders.
Solvency Ratio: Describe the company's ability to fulfill its long-term obligations. This provides insight into the financial risks faced by the company.
Activity Ratio: shows how efficient the company uses its assets to generate income. This includes an analysis of inventory turnover and receivables.

Analysis of the 2015 - 2017 Period

By observing the financial statements of PT. Jasa Marga (Persero) Tbk Belmera Branch During the 2015 to 2017 period, we can draw conclusions about the company's financial performance trends. For example, if the liquidity ratio increases, this can indicate that the company is getting better in managing its current assets, but if the profitability ratio decreases, there may be problems in operational efficiency.

Interpretation of Financial Ratios

Each ratio gives a different perspective, and is important for management to monitor and evaluate all this ratio regularly. With a deep understanding of the company's financial performance, management can make wiser decisions in managing resources, infrastructure development, and future strategic planning.

Conclusion

In conclusion, financial ratio analysis is not only important for companies, but also for other stakeholders, including investors, creditors, and the general public. This is a useful tool for evaluating performance and providing a clear picture of the future of PT. Jasa Marga (Persero) Tbk Belmera Branch in carrying out its functions as a toll road service provider in Indonesia.

Recommendations

Based on the analysis of financial ratios, the following recommendations can be made:

Improve liquidity management: PT. Jasa Marga (Persero) Tbk Belmera Branch should focus on improving its liquidity management by increasing its current assets and reducing its current liabilities.
Enhance profitability: The company should focus on enhancing its profitability by improving its operational efficiency and reducing its costs.
Develop a long-term strategy: PT. Jasa Marga (Persero) Tbk Belmera Branch should develop a long-term strategy to ensure the company's financial sustainability and growth.

By implementing these recommendations, PT. Jasa Marga (Persero) Tbk Belmera Branch can improve its financial performance, enhance its competitiveness, and contribute to the country's economic growth.
Frequently Asked Questions (FAQs) about Financial Ratio Analysis at PT. Jasa Marga (Persero) Tbk Belmera Branch

Q: What is financial ratio analysis?

A: Financial ratio analysis is a technique used to evaluate the performance and financial condition of a company by comparing the numbers in the financial statements.

Q: Why is financial ratio analysis important for PT. Jasa Marga (Persero) Tbk Belmera Branch?

A: Financial ratio analysis is important for PT. Jasa Marga (Persero) Tbk Belmera Branch because it helps the company to understand its financial performance, identify areas of improvement, and make informed decisions to enhance its financial sustainability and growth.

Q: What are the types of financial ratios that are often analyzed?

A: The financial ratios that are often analyzed include liquidity ratio, profitability ratio, solvency ratio, and activity ratio.

Q: What is the liquidity ratio?

A: The liquidity ratio measures the company's ability to fulfill its short-term obligations. It is an important ratio to assess company liquidity and ensure that the company can meet the due debt.

Q: What is the profitability ratio?

A: The profitability ratio shows how well the company is in generating profits from its income. It is very important for companies that aim to increase the value of shareholders.

Q: What is the solvency ratio?

A: The solvency ratio describes the company's ability to fulfill its long-term obligations. It provides insight into the financial risks faced by the company.

Q: What is the activity ratio?

A: The activity ratio shows how efficient the company uses its assets to generate income. It includes an analysis of inventory turnover and receivables.

Q: How can financial ratio analysis help PT. Jasa Marga (Persero) Tbk Belmera Branch?

A: Financial ratio analysis can help PT. Jasa Marga (Persero) Tbk Belmera Branch by:

Identifying areas of improvement in financial management
Enhancing operational efficiency
Improving liquidity management
Developing a long-term strategy for financial sustainability and growth

Q: Who can benefit from financial ratio analysis?

A: Financial ratio analysis can benefit various stakeholders, including:

Investors
Creditors
Management
Shareholders
General public

Q: How can PT. Jasa Marga (Persero) Tbk Belmera Branch implement financial ratio analysis?

A: PT. Jasa Marga (Persero) Tbk Belmera Branch can implement financial ratio analysis by:

Analyzing financial statements
Identifying key financial ratios
Monitoring and evaluating financial performance
Making informed decisions to enhance financial sustainability and growth

Q: What are the limitations of financial ratio analysis?

A: Financial ratio analysis has some limitations, including:

It may not provide a complete picture of a company's financial performance
It may not account for non-financial factors that affect a company's performance
It may be subject to manipulation by management

Q: How can PT. Jasa Marga (Persero) Tbk Belmera Branch overcome the limitations of financial ratio analysis?

A: PT. Jasa Marga (Persero) Tbk Belmera Branch can overcome the limitations of financial ratio analysis by:

Using multiple financial ratios to get a comprehensive picture of financial performance
Considering non-financial factors that affect financial performance
Ensuring transparency and accuracy in financial reporting

By understanding the importance and benefits of financial ratio analysis, PT. Jasa Marga (Persero) Tbk Belmera Branch can make informed decisions to enhance its financial sustainability and growth.