PROFITABILITY ANALYSIS OF PT EASTPARC HOTEL TBK BEFORE AND DURING THE COVID-19 PANDEMIC

Abstract

The present research aims to analyze the financial performance of PT Eastparc Hotel Tbk before and during the COVID-19 pandemic. The assessment of financial performance is done through profitability analysis using some ratios, namely net profit margin (NPM), return on investment (ROI), and return on equity (ROE). Data was obtained from the annual financial statements of PT Eastparc Hotel Tbk from 2018 to 2021, where the time range 2018–2019 shows the performance before COVID-19, while the time span 2020–2021 shows the performance during COVID-19. The results of the data analysis show that there was an increase in all ratios and the component of the ratio in the window period accepted for the year 2020 as compared to 2019. The results also reveal that the average ratio of NPM before the pandemic was 10.01% and during the pandemic was 19.67%. The average ROI before the pandemic was 2.14%, and during the pandemic it was 3.32%. The average ROE before the pandemic was 2.78%, and during the pandemic it was 3.53%. These results indicate that in 2021, the performance achievement of PT Eastparc Hotel Tbk began to improve very well beyond the achievement of the year before the pandemic. This study provides representation about financial performances, especially in the profitability sector at PT Eastparc Hotel Tbk. The stakeholders will be able to review the company’s performance in order to make decisions for the company’s future. This study can also be a reference for further research.