Financial Ratio and Cost-Volume-Profit Analysis to Assess the Financial Performance of PT Integra Indocabinet Tbk in the 2023–2024 Period

Abstract

The recovery of furniture export sales in 2024 was not necessarily accompanied by adequate financial condition. This study aims to assess the financial performance of PT Integra Indocabinet Tbk for 2023–2024 using liquidity, solvency, activity, and profitability ratios together with cost-volume-profit (CVP) analysis. This descriptive quantitative study applies time series analysis to the company's audited annual consolidated financial statements and integrated annual reports. The results show that liquidity declined and stayed below the benchmarks (current ratio from 186.16% to 176.36%; quick ratio from 74.83% to 67.95%). The debt to equity ratio (77.72% and 75.14%) met the 90% benchmark, but the debt to assets ratio (43.73% and 42.90%) exceeded the 35% benchmark. Inventory turnover improved from 0.54 to 0.68 times and the net profit margin rose from 4.33% to 5.54%, yet both remained far below the benchmarks, while the gross profit margin fell from 33.82% to 28.10%. CVP analysis shows that the contribution margin ratio fell from 33.82% to 28.10%, the break-even point rose from IDR 1,173,753 million to IDR 1,444,281 million, and the margin of safety after interest was only 17.55% in 2024. The novelty of this study lies in combining financial ratios with CVP and tracing ratio changes to specific financial statement items. The implication is that management needs to strengthen liquidity, control cost of goods sold and inventory, and reduce reliance on short-term funding.