Analysis of Financial Statements to Assess the Profitability of PT Ace Hardware Indonesia Tbk for the Period 2019-2023

Abstract

In an ever-evolving business landscape, the ability to assess a company's financial health is becoming increasingly crucial. The company's ability to generate profits is one of the main indicators of operational success and attractiveness for investors. PT Ace Hardware Indonesia Tbk, as one of the main players in the home and lifestyle retail industry in Indonesia, is interesting to study more deeply regarding its financial performance, especially from the aspect of profitability. Financial statement analysis is a key instrument in assessing the financial health and growth prospects of this company. This study comprehensively examines the financial statements of PT Ace Hardware Indonesia Tbk over a five-year period, from 2019 to 2023. The analysis method used is financial ratio analysis with a focus on profitability ratios such as Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM). The data used is sourced from the company's audited annual financial statements. The results of the study show that the profitability of PT Ace Hardware Indonesia Tbk fluctuated during the period. There was a significant decline in 2020 due to the pandemic. This study concludes that PT Ace Hardware Indonesia Tbk's financial performance, as measured by Net Profit Margin (NPM), Return on Asset (ROA), and Return on Equity (ROE), is still in the poor category.