Source: OAI

ABSTRACT This study is a descriptive research on tobacco companies under the title: Analysis of Financial performance at PT. Gudang Garam Tbk. The purpose of this study is to explain the company's financial performance based on financial ratio analysis. The analytical tool used to determine financial performance in the cigarette company that is by ratio analysis of profitability ratios, activity, leverage and liquidity. The result of calculation with the ratio analysis is seen from this cigarette company's profitability ratios tend to fluctuate, this shows that the company has not been able to control the sale and the overall burdens which bear so that affects net income. Judging from the ratio decreased activity of this company, this means that the company in managing inventory and assets is poor. Viewed from the leverage ratio indicates the percentage increase, this indicates growing the company from debt financing. The use of high leverage will increase the profitability of capital stock with a fast and firm with the financial risk will be higher too high. Being seen from the company's liquidity ratio is decreasing, this indicates that the level of liquidity or the ability of the company in ensuring smooth debt with its current assets less good. From the results of analysis of these ratios we can see that the financial performance of the tobacco company PT. Gudang Garam, Kediri language poorly. Here the authors expect the management to evaluate the activity of the company's financial statements each end of the period on a regular basis so that management can know the parts business company that is experiencing progress and setbacks and find the solution path.