Financial performance analysis of Chandra Asri Petrochemical 2020-2022 period

Abstract

This research aims to evaluate the financial performance of PT. Chandra Asri Petrochemical Tbk from 2020 to 2022, using descriptive analysis method and utilizing secondary data from financial reports obtained through the official website of the Indonesia Stock Exchange at www.idx.co.id. The research objective is to compare the data to evaluate the financial position of the industry within a specific period. Several ratios analyzed involve liquidity, solvency, and profitability, represented by current ratio, debt to equity ratio, and return on equity (ROE) respectively. The results generated during this research for the period of 2020-2022, particularly in liquidity ratios observed through the current ratio, form the basis for evaluating the financial performance of PT. Chandra Asri Petrochemical Tbk. (1) Evaluation of the financial performance of PT. Chandra Asri Petrochemical Tbk based on Liquidity Ratio, measured through the current ratio from 2020 to 2021, is considered very good. However, in 2022, there was a significant decrease due to a decline in current assets, such as cash and receivables, which will affect the current ratio; (2) Evaluation of the financial performance of PT. Chandra Asri Petrochemical Tbk based on Solvency Ratio measured by Debt-to-Equity Ratio experienced a decrease during the period of 2020-2021, reflecting efforts to reduce dependence on debt. However, the ratio increased again in 2022, caused by a decrease in the company's equity; (3) Evaluation of the financial performance of PT. Chandra Asri Petrochemical Tbk based on Profitability Ratio measured through return on equity (ROE), the company experienced an increase during the period of 2020-2022, reflecting improvements in equity utilization efficiency and the company's ability to generate greater profitability. Nevertheless, optimal debt utilization by the company needs to be monitored.