DETERMINANTS OF FINANCIAL RATIO USING STANDARDS

Abstract

The purpose of this research is to assess and analyze financial performance in terms of profitability ratios in the form of Return On Assets, Return On Equity, Net Profit Margin and Gross Profit Margin at PT Perkebunan Nusantara III (Persero) Medan Period 2013 to 2017. This study uses descriptive approach, which is a research that only collects, compiles, classifies and interprets data so that it can fulfill a clear picture of the problem being studied. Based on the results of the analysis and discussion, the financial performance of PT Perkebunan Nusantara III (Persero) Medan in terms of profitability ratios in the form of Return On Assets has poor financial performance because the company is less able to use large assets effectively and efficiently to generate maximum profit. For financial performance in the form of Return On Equity, it is below the standard average. This is due to the high costs of the company, so that high capital is not able to generate maximum profit. The company's net profit margin also has poor financial performance, where the net profit margin is below the standard average. This is because the company is not able to maximize net profit from high sales. And financial performance in the form of Gross Profit Margin is also below the standard average. Where the company is less able to increase profit before interest and taxes from high sales due to the high costs of the company.