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INTERNATIONAL JOURNAL OF TRENDS IN ACCOUNTING RESEARCHINTERNATIONAL JOURNAL OF TRENDS IN ACCOUNTING RESEARCH

The purpose of this research is to analyze financial performance using liquidity ratios (Current Ratio and Cash Ratio), solvency (Debt to Assets Ratio and Debt to Equity Ratio), profitability (Return on Investment and Return on Equity), and activity (Asset Turnover and Fixed Asset Turnover) at PT Unilever Indonesia Tbk. for the period 2019–2024. The research method used is a quantitative descriptive method, which explains and provides an overview of a phenomenon from numerical data listed in the financial statements for 6 consecutive years. The results of the study indicate that PT Unilever Indonesia Tbk. has excellent profitability and asset efficiency, this can be seen from the ROI, ROE, TAT, and FAT values that are above industry standards. However, in terms of liquidity, the Current Ratio is below standard, even though the Cash Ratio is very high. This is due to sufficient cash capacity to meet short-term obligations. Meanwhile, a high solvency ratio indicates the company dependence on debt, so financial risks need to be managed more carefully. This research provides an empirical picture of the strengths and weaknesses of the company financial performance and can be the basis for management strategies in optimizing capital structure, increasing liquidity, and maintaining asset efficiency in a sustainable manner.

Based on the financial ratio analysis of PT Unilever Indonesia Tbk.for the 2019–2024 period, the company exhibits varied performance across different financial aspects.The companys ability to meet short-term obligations remains relatively weak, while its cash reserves are strong.A high dependence on debt presents financial risks that require careful management.Despite these challenges, the company demonstrates excellent profitability and asset utilization efficiency.Maintaining a balanced financial structure across liquidity, solvency, and profitability is crucial for ensuring sustainable financial performance.

Further research could investigate the impact of macroeconomic factors, such as inflation and exchange rates, on PT Unilever Indonesia Tbk.s financial performance, particularly concerning its high debt levels. Additionally, a comparative analysis with competitors in the FMCG industry could provide valuable insights into best practices for liquidity management and capital structure optimization. Finally, exploring the relationship between non-financial factors, like brand reputation and consumer loyalty, and the companys profitability and asset efficiency would offer a more holistic understanding of its financial success. These studies should consider the evolving consumer landscape and the increasing importance of sustainable business practices, potentially examining the financial implications of Unilevers environmental and social initiatives. Such research would provide a more comprehensive understanding of the factors driving the companys financial performance and inform strategic decision-making for long-term sustainability and growth.

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