Open AccessAnalysis Of Financial Statements To Assess Financial Performance In Regional Drinking Water Companies In Tegal City
Author(s) -
Indah Dwi Pebriani,
Fenti Nurlaeli
Publication year - 2022
Publication title -
basic and applied computational and advanced research journal
Language(s) - English
Resource type - Journals
ISSN - 2807-5811
DOI - 10.11594/bacarj.01.02.01
Subject(s) - solvency , profitability index , market liquidity , business , financial ratio , finance , solvency ratio , equity (law) , documentation , data collection , return on equity , accounting , statistics , computer science , mathematics , political science , law , programming language
This research was conducted at the Tegal City Drinking Water Company which is a regional company engaged in clean and healthy water services for the needs of the community. The purpose of this study was to determine the financial performance of the Regional Water Company of Tegal City seen from the ratio of profitability, liquidity, and solvency. The research method used includes the type of research, namely quantitative descriptive research. Sources of data used are primary data and secondary data. Data collection methods are literature review, documentation and interviews. The data analysis method used is a quantitative method. The results of this study indicate that the profitability ratio which includes Return On Equity shows that in 2018 it was 11.18%, in 2019 it was 9.26%, and in 2020 it was 11.39%. While the Operating Ratio in 2018 was 0.85, in 2019 it was 0.90 and in 2020 it was 0.89. Liquidity ratios include the Cash Ratio in 2018 of 1,473.28%, in 2019 of 698.67%, and in 2020 of 673.13%. Meanwhile, Billing Effectiveness in 2018 was 95.94%, in 2018 it was 98.47%, and in 2020 it was 95.04%. The solvency ratio in 2018 was 852.62%, in 2019 it was 607.40%, and in 2020 it was 482.17%. Based on the results of the research above, it can be concluded that the financial performance of the Regional Water Company of Tegal City is seen from the profitability ratios in a condition of rentable and inrentable. Then based on the liquidity ratio in a liquid state. And based on the solvency ratio in a solvable state.