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LIQUIDITY RATIO ANALYSIS AS AN ASSESSMENT TO ..., Study notes of Economics

Philippine Military Academy (PMA)Economics

This study aims to find out and analyze how well the current ratio (X1) to assess financial performance at PT. Garudafood. Putra Putri Jaya, how good quick ...

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187
JIM UPB
Jurnal Program Studi Manajemen
Universitas Putera Batam Vol.9 No.2
LIQUIDITY RATIO ANALYSIS AS AN ASSESSMENT TO MEASURE
FINANCIAL PERFORMANCE AT PT GARUDAFOOD PUTRA PUTRI
JAYA TBK
By
Fitrianingsih1, Nurul Huda2
Management Study Program, School of Economics(STIE) Bima
Email: fitrianingsih17.stiebima@gmail.com
ABSTRACT
A company's success can be measured based on the company's financial performance. The good and poor
financial performance of the company can be assessed through the company's financial statements presented
regularly. One way of assessing the financial performance of the most used companies is the financial ratio.
Liquidity ratio is a ratio used to measure the company's ability to meet short-term liabilities (debt). This study
aims to find out and analyze how well the current ratio (X1) to assess financial performance at PT. Garudafood
Putra Putri Jaya, how good quick ratio (X2) to assess financial performance at PT. Garudafood Putra Putri Jaya,
and how good the cash ratio (X3) to assess financial performance at PT. Garudafood Putra Putri Jaya. The type
of research used is descriptive research with quantitative methods, Population in this study is financial report
data for 5 years (2015-2019), sample in this study is 5 years, sampling technique is saturated sampling. The
research instrument used is financial statements in the form of balance sheet reports accessed through the
www.idx.co.id website. Data collection techniques are documentation and library studies. Based on the results of
the research and hypothesis testing outlined earlier, the researchers drew the following conclusions: 1) The
financial performance of PT Garudafood Putra Putri Jaya Tbk based on liquidity ratio is reviewed from the
average current ratio of the company's condition is less than the expected criteria. 2) The financial performance
of PT Garudafood Putra Putri Jaya Tbk based on liquidity ratio is reviewed from the average quick ratio of the
company's condition is less than the expected criteria. 3) The financial performance of PT Garudafood Putra
Putri Jaya Tbk based on liquidity ratio is reviewed from the average cash ratio of the company's condition is less
than the expected criteria.
Keywords : current ratio, quick ratio, and cash rasio
INTRODUCTION
The success of a company can be measured based on the company's financial
performance. One of the most frequently used ways to assess a company's financial
performance is financial ratios. The liquidity ratio is an indicator of the company's ability to
pay all short-term financial obligations at maturity using available current assets, the ability to
pay will provide guarantees for creditors to provide loans next. This ratio is important because
failure to pay short-term obligations can lead to bankruptcy. (Mery Andayani, 2016:4).
PT. GarudaFood Putra Puti Jaya, Tbk for 5 years has shown a less than optimal
performance, this can be seen from the fluctuation of current liabilities due to the availability
of company assets that are not sufficient to pay obligations when they fall due. From 2015-
2017 the company's assets showed a declining condition, this shows that the company's ability
to pay obligations is very poor.
Based on the above background, the formulation of the problem in this study is as
follows: 1) How good is the current ratio for assessing financial performance at PT. Garudafood
Putra Putri Jaya, Tbk? 2) How good is the quick ratio to assess the financial performance of
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JIM UPB Jurnal Program Studi Manajemen Universitas Putera Batam Vol. 9 No. 2

LIQUIDITY RATIO ANALYSIS AS AN ASSESSMENT TO MEASURE

FINANCIAL PERFORMANCE AT PT GARUDAFOOD PUTRA PUTRI

JAYA TBK

By Fitrianingsih^1 , Nurul Huda^2 Management Study Program, School of Economics(STIE) Bima Email: fitrianingsih17.stiebima@gmail.com ABSTRACT A company's success can be measured based on the company's financial performance. The good and poor financial performance of the company can be assessed through the company's financial statements presented regularly. One way of assessing the financial performance of the most used companies is the financial ratio. Liquidity ratio is a ratio used to measure the company's ability to meet short-term liabilities (debt). This study aims to find out and analyze how well the current ratio (X1) to assess financial performance at PT. Garudafood Putra Putri Jaya, how good quick ratio (X2) to assess financial performance at PT. Garudafood Putra Putri Jaya, and how good the cash ratio (X3) to assess financial performance at PT. Garudafood Putra Putri Jaya. The type of research used is descriptive research with quantitative methods, Population in this study is financial report data for 5 years (2015-2019), sample in this study is 5 years, sampling technique is saturated sampling. The research instrument used is financial statements in the form of balance sheet reports accessed through the www.idx.co.id website. Data collection techniques are documentation and library studies. Based on the results of the research and hypothesis testing outlined earlier, the researchers drew the following conclusions: 1) The financial performance of PT Garudafood Putra Putri Jaya Tbk based on liquidity ratio is reviewed from the average current ratio of the company's condition is less than the expected criteria. 2) The financial performance of PT Garudafood Putra Putri Jaya Tbk based on liquidity ratio is reviewed from the average quick ratio of the company's condition is less than the expected criteria. 3) The financial performance of PT Garudafood Putra Putri Jaya Tbk based on liquidity ratio is reviewed from the average cash ratio of the company's condition is less than the expected criteria. Keywords : current ratio, quick ratio, and cash rasio INTRODUCTION The success of a company can be measured based on the company's financial performance. One of the most frequently used ways to assess a company's financial performance is financial ratios. The liquidity ratio is an indicator of the company's ability to pay all short-term financial obligations at maturity using available current assets, the ability to pay will provide guarantees for creditors to provide loans next. This ratio is important because failure to pay short-term obligations can lead to bankruptcy. (Mery Andayani, 2016:4). PT. GarudaFood Putra Puti Jaya, Tbk for 5 years has shown a less than optimal performance, this can be seen from the fluctuation of current liabilities due to the availability of company assets that are not sufficient to pay obligations when they fall due. From 2015- 2017 the company's assets showed a declining condition, this shows that the company's ability to pay obligations is very poor. Based on the above background, the formulation of the problem in this study is as follows: 1) How good is the current ratio for assessing financial performance at PT. Garudafood Putra Putri Jaya, Tbk? 2) How good is the quick ratio to assess the financial performance of

PT. Garudafood Putra Putri Jaya, Tbk? 3) How good is the cash ratio for assessing financial performance at PT. Garudafood Putra Putri Jaya, Tbk. Based on the formulation of the problem above, the objectives in this study are as follows:

  1. To find out and analyze how well the current ratio is to assess financial performance at PT. Garudafood Putra Putri Jaya, Tbk. 2) To find out and analyze how good the quick ratio is to assess the financial performance of PT. Garudafood Putra Putri Jaya, Tbk. 3) To find out and analyze how good the cash ratio is to assess the financial performance of PT. Garudafood Putra Putri Jaya, Tbk. LITERATURE REVIEW Financial performance Financial performance is to assess the financial condition and performance of the company, the analysis requires several benchmarks used, namely ratios and indexes, which connect two financial data with one another (Fahmi, 2013: 67). Liquidity Ratio According to Kasmir, (2014:129), the liquidity ratio is a ratio that measures the company's ability to meet short-term obligations (debt). Current Ratio Is a ratio to measure the company's ability to pay short-term obligations or debts that are due immediately when billed in their entirety (Kasmir, 2014:134). Current rasio = current assets/current liabilities The industrial health standard or industry average used is that the current ratio is 2 times or 200%, so it can be said to be ill-liquid. This means that current assets are said to be healthy if they are 2 times more than current liabilities. Quick Ratio The quick ratio is a ratio that measures the company's ability to pay its short-term obligations with short-term assets minus inventory (Bambang Riyanto, 2001:27) Quick rasio = (current assets-inventory)/current liabilities. A business unit is said to be able to pay its short-term debt, if the value is greater than 1.5 or more than 150% (Martono, 2002: 55-56). Cash Ratio The cash ratio is a ratio that measures the company's ability to pay its short-term obligations using cash. This ratio is said to be healthy if it is not below 50% or 0.5. (cashmere, 2008:140) Cash ratio =(cash )/current liabilities Based on this, the hypothesis proposed as a temporary answer to the formulation of this research problem is: H0 : < 2 It is suspected that the financial performance of PT Garudafood Putra Jaya tbk, measured by using a current ratio of less than 2, is said to be less than the expected criteria. H1 : > 2 It is assumed that the financial performance of PT Garudafood Putra Jaya tbk, measured by using a current ratio greater than 2, is said to be quite good than the expected criteria. H0 : < 1.5 It is suspected that the financial performance of PT Garudafood Putra Jaya Tbk is measured using a quick ratio of less than 1.5 which is said to be less good than the expected criteria.

Based on the table above, obtained a significance value of 0.001 < 0.05, then H0 is rejected and the value of tcount = 8,588, and the value of ttable = 2.132 because the value of tcount is greater than ttable (tcount > ttable), then H0 is accepted and H1 is rejected, meaning financial performance PT Garudafood Putra Putri Jaya Tbk measured using a current ratio of less than 2 is said to be less good than the expected criteria. Table 2 Quick ratio t test table Source: SPSS 16.0. data processing results Based on the table above, obtained a significance value of 0.000 <0.05, then H0 is rejected and the value of tcount = 11,910 and the value of ttable = 2.132 because the value of tcount is greater than ttable (tcount > ttable), then, H0 is accepted and H1 is rejected, meaning that the financial performance of PT Garudafood Putra Putri Jaya Tbk measured using a quick ratio less than 1.5 is said to be less good than the expected criteria. Based on the table above, the significance value is 0.000 < 0.05, then H0 is rejected and the tcount = 11,910 and the ttable value = 2.132 because the value of tcount is greater than ttable (tcount > ttable), then H0 is accepted and H1 is rejected, meaning that the financial performance of PT Garudafood Putra Putri Jaya Tbk measured using a quick ratio of less than 1.5 is said to be less good than the expected criteria. Table 3 T-test table cash ratio Source: SPSS 16.0. data processing results Based on the table above, obtained a significance value of 0.004 <0.05, then H0 is rejected and the value of tcount = 6.132 and the value of ttable = 2.132 because the value of tcount is greater than ttable (tcount > ttable), then H0 is accepted and H1 is rejected, meaning that the financial performance of PT Garudafood Putra Putri Jaya Tbk measured using a cash ratio of less than 0.5 is said to be less good than the expected criteria.

Fitrianingsih, Nurul Huda CONCLUSIONS Based on the results of the study, the researchers drew the following conclusions:

  1. The financial performance of PT Garudafood Putra Putri Jaya Tbk based on the liquidity ratio in terms of the average current ratio, the company's condition was less than the expected criteria.
  2. The financial performance of PT Garudafood Putra Putri Jaya Tbk based on the liquidity ratio in terms of the average quick ratio, the company's condition is less than the expected criteria.
  3. The financial performance of PT Garudafood Putra Putri Jaya Tbk based on the liquidity ratio in terms of the average cash ratio, the company's condition is less than the expected criteria. The benefits expected from the results of this study include:
  4. For investors It is hoped that through this research investors can see and be used as a comparison material in making decisions to invest in industrial companies, especially Pt Garudafood Putra Putri Jaya Tbk in addition to seeing and paying attention to the possible risks that exist, investors should also pay attention to the possible risks of companies be a target.
  5. For the company For the company management must further improve its performance in managing the funds that are accommodated in the form of current assets (cash and cash equivalents, inventories) so that the company's condition is not said to be ill-liquid in fulfilling current obligations.
  6. For other parties It is hoped that this research can be of benefit and be used as a reference for developing similar research, which is related to liquidity ratio research and is able to increase the number and expand the sample to be studied. REFERENCE Agus D. Hardjito, Martono. 2002. Financial Management, First Edition, Econisia, Yogyakarta. Ambarwati, Endang. 2016. "AT BUMDES PROSPEROUS PROSPERITY VILLAGE OF RELATIONSHIP YEAR 2011-2015". Thing. 23. Andayani, Mary. 2016. “ANALYSIS OF LIQUIDITY RATIO AND PROFITABILITY RATIO TO CHANGES IN PROFIT”. Journal of Accounting Science and Research, 05(07) 1-19. Arikunto, S (2013). Research Procedure: A Practical Approach. Jakarta: Rineka Cipta. Baiti, I. (2020). Financial Performance Analysis of Pt Garudafood Puta Putri Jaya Tbk 2017- 2019 Period. Bambang Riyanto. 2001. Fundamentals of Corporate Learning. BPFE, Yogyakarta. Irham Fahmi, 2013. Analysis of Financial Statements. Bandung: Alfabeta. Journal of Business, Management, And Economics, 1(2), 11-15.0rg/10.47747/Jbme.V1i2. Kasmir, 2008. Banks and Other Financial Institutions. Jakarta: Pt. King Grafindo Persada. Kasmir, 2014. Analysis of Financial Statements, 7th Printing. Jakarta : Pt Raja Grafindo Persada. Nazir, Moh. (2013). Research methods. Bogor: Ghalia Indonesia. Noatmojo, S. 2010. Health Research Methods. Jakarta: Rineka Cipta. Ratu, P.T.M., Tahun, T., & Nuriasari, S (2018). Liquidity Ratio Analysis in Measuring Financial Performance. 4(2), 1-9.