Financial Ratio Analysis and Trends to Measure Company Performance at PT Unilever Indonesia Tbk for the Period 2016-2025

Abstract

This study aims to analyze the financial performance of PT Unilever Indonesia Tbk over the period 2016–2025 through liquidity, solvency, profitability, and activity ratios using the Trend Index, Trend Least Square, industry standard comparison, and Signaling Theory approaches. The data employed are secondary data in the form of annual financial statements of PT Unilever Indonesia Tbk for the period 2016–2025. This research is classified as quantitative descriptive. The findings indicate that the company's financial performance tends to decline. Liquidity ratios (Current Ratio and Quick Ratio) fluctuate with a downward trend and consistently remain below industry standards, implying that the ability to meet short-term obligations is not optimal. Solvency ratios (Debt to Asset Ratio and Debt to Equity Ratio) exhibit an upward trend and exceed industry standards, indicating high reliance on debt and increasing financial risk. Profitability ratios (Net Profit Margin, Return on Equity, and Return on Assets) fluctuate with a downward trend, reflecting a weakening ability to generate profits from sales, assets, and equity. Activity ratios (Total Asset Turnover and Inventory Turnover) also show a declining trend, where TATO falls below the industry standard in 2025 and ITO consistently remains below the standard, suggesting that asset utilization and inventory management are not yet optimal. Overall, the results of Trend Index and Trend Least Square analyzes reveal a consistent pattern: a decline in liquidity, profitability, and activity, alongside an increase in solvency. From the perspective of Signaling Theory, these findings provide a negative signal to investors, creditors, and potential investors regarding the company's financial condition and prospects.