Analysis of Financial Ratio to Profitability in PT. Pegadaian Indonesia 2008-2022

Abstract

This article aims to know and analyze the effect of liquidity ratios, solvency ratios, and activity ratios on profitability ratios at PT Pegadaian Indonesia. The population of this research is PT Pegadaian Indonesia. The sample used in this study is the 2008-2022 financial statements of PT Pegadaian Indonesia. The type of data used in this study is secondary data in the form of PT Pegadaian's annual financial reports for the 2008-2022 period. Sources of data were obtained through the website www.pegadaian.co.id/ Reports-Performance/ Report- Annual. The data analysis method used is multiple linear regression analysis. The results showed that the liquidity ratio had a significant positive effect on profitability; PT Pegadaian Indonesia had sufficient assets to pay off its short-term obligations so that the company's operational activities were not disrupted. The solvency ratio has a significant positive effect on profitability; the increasing company debt used for operational financing will generate profits so that the company is still able to fulfill its obligations. The activity ratio does not have a significant negative effect on profitability; PT Pegadaian Indonesia is likely to be more concerned with repaying creditors than using cash to pay returns to shareholders so that no matter how much the value of income received by utilizing assets owned does not affect the profitability obtained.