Profitability Ratio Analysis to measure The Financial Performance of PT Citra Sukses Energi

Abstract

Profitability is one of the main measures for evaluating the financial performance of a business entity. Determines the extent to which a company is performing compared to its competitors and whether they have a competitive advantage in terms of profitability. The aim of this research is to use profitability ratios to test the financial performance of PT Citra Sukses Energi. Descriptive research using a qualitative approach is the type of research used in this research. Based on research results, a significant increase in Gross Profit Margin from 22% in 2020 to 54% in 2022. This reflects the company's ability to maintain a gross profit that is greater than revenue, indicating good profitability. Net Profit Margin has also experienced a drastic increase, from 10% in 2020 to 40% in 2022. However, despite this increase, the net profit margin is still below the industry average of 20%, showing the potential to increase operational cost efficiency. Return on Investment (ROI) increased significantly from 7% in 2020 to 34% in 2022. Despite the improvement, the company's ROI is still below the industry average of 30%, indicating the need for improvements in investment management.
Keywords: Ratio Analysis, Financial Performance, Profitability Ratios, and PT Citra Sukses Energy