Assessment of Financial Ratio Analysis for Evaluation of Small Medium Enterprises (SME) Performance

Abstract

This exploration depends on the improvement of small and medium ventures (SMEs) in Indonesia that has never been isolated from the monetary administration issues of this substance. The exhibition of SME finance is not just in the examination of its budget summaries. Nevertheless, the further investigation ought to be completed to survey whether the presence of this element is supposed to be achievable or not. Financial Ratio is one of the techniques that can be utilized to evaluate the financial presentation of SMEs. This exploration means deciding the evaluation of SMEs' financial presentation, particularly in the chosen family industry, to be specific Ramayana Agro Mandiri. Where this evaluation depends on the examination of financial proportions in the SME budget reports. Time series examination was picked as an information investigation strategy utilized by contrasting financial proportions in a specific period for this situation fiscal reports. The proportions chose in this examination include liquidity ratio (current ratio and fast ratio), leverage ratio (debt ratio and debt to capital ratio), activity ratio (inventory turnover, fixed asset turnover, total asset turnover, receivables turnover, and average billing period), as well as profitability ratio (gross profit margin, net profit margin, ROA, and ROE), just as to benefit proportion (net revenue, overall net revenue, ROA, and ROE). The estimation results show that the liquidity level of SME is enormous (over liquidity), the degree of influence is minimal, so the danger of the organization is additionally exceptionally low, just as the degree of action and productivity of the organization in helpless condition because of the diminishing in deals and benefit over the most recent two years.