Financial Performance Analysis Based on Profitability Rasio (Study At Pt Midi Utama Indonesia Tbk Period 2020-2024)

Abstract

PT Midi Utama Indonesia Tbk, a large retail company in Indonesia that manages Alfamidi minimarkets, faces challenges from competition and changing economic dynamics during the 2020–2024 period, particularly as a result of the COVID-19 pandemic and economic recovery after the pandemic. In this study, profitability is key to evaluating how effective and stable a company's financial management is. Profitability analysis shows how well a company generates profits and how management utilizes assets and equity. Therefore, it is crucial to conduct research on profitability and its relationship with the financial performance of PT Midi Utama Indonesia Tbk during this period. The objective of this study is to evaluate how the financial performance of PT Midi Utama Indonesia Tbk is influenced by profitability ratios such as return on assets (ROA), return on equity (ROE), and net profit margin (NPM), as well as how gross profit margin (GPM) contributes to the financial performance of PT Midi Utama Indonesia Tbk during the years 2020–2024. This study uses a quantitative approach with a literature review research method. It utilizes secondary data obtained from the annual financial reports of PT Midi Utama Indonesia Tbk for the years 2020–2024. The analysis results indicate that the profitability of PT Midi Utama Indonesia Tbk fluctuated during the period 2020– 2024. At the onset of the pandemic, there was a decline in ROA and ROE due to reduced sales and increased operational costs. However, starting in 2022, the company showed recovery with improved net profit margins and cost efficiency, which positively impacted profitability and overall financial performance. Profitability has proven to be a significant indicator in reflecting the financial performance of PT Midi Utama Indonesia Tbk. Despite being impacted by the pandemic, the company was able to restore profitability through efficiency strategies and market adaptation.