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Profitability, Solvency, and Liquidity Ratio Analysis of PT Unilever Indonesia Tbk, 2020-2024

2024-05-27
Published
15-28
Pages
OPEN
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MA
Muhammad Azhar Abbas
Management Study Program, Faculty of Economics and Business, University of Muhammadiyah Makassar
WR
Wa Ode Rayyani
Management Study Program, Faculty of Economics and Business, University of Muhammadiyah Makassar
Abstract

Purpose: This study assesses whether PT Unilever Indonesia Tbk maintained a healthy financial condition during the 2020-2024 period by examining its profitability, solvency, and liquidity ratios.

Research Methodology: The study uses a descriptive quantitative method based on secondary data drawn from the company's annual reports for the 2020-2024 period, comparing ratio values year by year to identify trends and draw conclusions about financial health.

Results: The findings show that the financial performance of PT Unilever Indonesia Tbk declined over the 2020-2024 period. Net Profit Margin fell from 16.67 percent to 9.59 percent and Return on Assets fell from 34.88 percent to 20.99 percent, while Return on Equity fluctuated but ended higher, at 156.8 percent. The Debt to Equity Ratio rose sharply from 3.16 times to 6.47 times, and the Current Ratio declined from 0.66 times to 0.44 times, remaining below the conventional threshold of 1.0 throughout the period.

Conclusions: PT Unilever Indonesia Tbk's financial performance declined over 2020-2024, particularly in profitability, solvency, and liquidity, and the rise in Return on Equity reflects a shrinking equity base rather than genuinely stronger returns, so the company's financial condition is best categorized as unhealthy for this period.

Limitations: This study is limited to secondary data available for the 2020-2024 period, restricting the analysis to a five-year window and to the ratios examined here.

Contributions: This study offers insight for the company to consider in future financial planning and serves as a reference for investors evaluating stock investment decisions concerning PT Unilever Indonesia.

Financial Performance Financial Ratios Liquidity Profitability Solvency
How to Cite
Abbas, M. A., & Rayyani, W. O. . (2024). Profitability, Solvency, and Liquidity Ratio Analysis of PT Unilever Indonesia Tbk, 2020-2024. Jurnal Teknika Dan Informatika, 4(1), 15-28. https://doi.org/10.52909/2y692q18
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How to Cite

Abbas, M. A., & Rayyani, W. O. . (2024). Profitability, Solvency, and Liquidity Ratio Analysis of PT Unilever Indonesia Tbk, 2020-2024. Jurnal Teknika Dan Informatika, 4(1), 15-28. https://doi.org/10.52909/2y692q18
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