Open AccessRole of Solvability Ratio of Financial Performance at Pt. Orientama Lintas Buana
Author(s) -
Riska Yulianti,
Erry Rimawan,
Cecep Hermawan,
Febry Wonggiawan
Publication year - 2020
Publication title -
international journal of innovative science and research technology
Language(s) - English
Resource type - Journals
ISSN - 2456-2165
DOI - 10.38124/ijisrt20jul028
Subject(s) - solvency ratio , debt ratio , business , financial ratio , solvency , debt to capital ratio , asset turnover , operating expense , earnings before interest and taxes , equity ratio , finance , debt , return on assets , return on equity , market liquidity , profitability index
Financial performance of PT. Orientama Lintas Buana in the period 2014 to 2016 based on solvency ratio analysis experiencing instability financial performance and decline in operating profit. The formulation of the problem in this study is whether the instability of financial performance and the decrease in operating profit seen from the period 2014 to 2016 has an important role to the financial performance of the company. The result of the research shows that PT. Orientama Lintas Buana in general has a good financial performance when examined from asset quality where the debt ratio to corporate assets in 2015 decreased compared to 2014 and 2016 and debt ratio to corporate capital in 2015 decreased compared to 2014 and 2016. Performance corporate finance is less good when viewed from the ratio of operating profit to liabilities where from 2014 to 2016 this ratio has decreased, this condition shows the company has not been able to perform efficiency over the operational expenses are too large.