Analysis of Net Profit Margin, Current Ratio, and Total Assets Turnover to Assess Financial Performance at PT Kalbe Farma Tbk Period 2017-2021

Abstract

This study aims to determine the financial performance of PT Kalbe Farma Tbk. in 2017 to 2021, namely by
analyzing ratios in the form of profitability ratios whose indicators are Net Profit Margin, liquidity ratios using
Current Ratio, and activity ratios using Total Asset Turnover. This type of research is qualitative research with
analytical methods through the stages of secondary documents, namely obtaining data from the company's financial
statements. The results show that the profitability ratio using the Net Profit Margin fluctuates, although it tends to
increase but is still below the industry standard where the average Net Profit Margin obtained in 2017-2021 is
11.92% and the industry standard is 20%. And the liquidity ratio using the Current Ratio has results that show very
healthy financial performance, the average Current Ratio in 2012-2021 is above the industry standard of 441% or
4.41 times where the industry standard is 200% or 2 times. The results of the activity ratio research using Total
Asset Turnover show an average result that is not good, which has an average yield of 1.10 times with the industry
standard 2 times. Thus, the financial performance of PT Kalbe Farma Tbk. the 2017-2021 period seen from the
profitability ratio using Net Profit Margin and the activity ratio using Total Asset Turnover, both of which are said
to be in poor financial performance. Meanwhile, the financial performance of PT Kalbe Farma Tbk. seen from the
liquidity ratio using the Current Ratio is said to be in good condition.