Financial Ratio Performance Analysis

A Case Study of PT Garuda Indonesia Tbk (2020–2024)

Abstract

This study aims to analyze the financial performance of PT Garuda Indonesia Tbk during the period 2020–
2024 using financial ratio analysis. The research employs a quantitative descriptive approach with a case study
design based on secondary data obtained from annual financial statements published by the Indonesia Stock
Exchange (IDX). The analysis focuses on liquidity, solvency, profitability, and activity ratios. The results show
that the company experienced significant financial pressure, particularly during the COVID-19 pandemic. The
liquidity ratio remained far below the ideal benchmark, with the Current Ratio declining to 0.10 in 2020 and
0.05 in 2021, before gradually improving to 0.56 in 2023 and slightly decreasing to 0.47 in 2024. The solvency
ratio indicates a high level of leverage, with the Debt to Asset Ratio consistently exceeding 0.5, reflecting a
strong dependence on debt financing. In terms of profitability, the company recorded negative performance in
several years, as indicated by negative Net Profit Margin values during the pandemic period. Furthermore, the
Total Asset Turnover remained below 1.0, indicating inefficient asset utilization. Overall, the findings suggest
that although PT Garuda Indonesia Tbk has shown gradual recovery after restructuring, the company still faces
significant challenges in achieving financial stability and operational efficiency. This study contributes to the
understanding of financial performance in capital-intensive industries during crisis and recovery periods.