ABSTRACT
This study aims to determine the financial health of construction companies in
Indonesia by using financial ratios. By knowing the financial health of construction
companies in Indonesia, the company can develop an effective financial pla n to keep their
company from failure so it can be used as a tool of introspection for the company to become
a stronger company in financial trouble.
The sampling technique used in this study was purposive sampling technique while
the analysis is Descrptive Statistical Analysis. Criteria used in the selection of the sampel is a
construction company which listed on BEI remained from 2008 until 2010 and obtained 7
samples of construction companies. In this study the use of financial statements are the
financial statements of the year 2008 until the year 2010. To know the description of the
financial health of a construction companies in Indonesia, so used 16 financial ratios.
The results showed that the construction company in Indonesia has a poor financial
management so Profitability Ratios construction company in Indonesia under the industry
average. Construction company in Indonesia has experienced a lack of capital and have a
long time collecting receivables that construction companies in Indonesia difficulty in
converting accounts receivable into cash.
