Financial Performance Evaluation: Evidence of Metal and Mineral Mining Companies in Indonesia

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Financial Performance Evaluation: Evidence of Metal and Mineral Mining Companies in Indonesia

Fahmi Oemar

¹

, Dwi Verasasti Tarihoran

³

, Endri

^3*

, Susi Handayani

⁴

1Universitas Lancang Kuning, Pekan Baru, Riau, Indonesia

2,3*Magister Management, Universitas Mercu Buana, Jakarta, Indonesia

4Universitas Indo Global Mandiri, Palembang, Sumsel, Indonesia

3*endri@mercubuana.ac.id Abstract.

The research objective was to analyze the financial performance of the mining companies of the Metal and Mineral sub-sectors listed on the Indonesia Stock Exchange in the 2014-2018 period. The performance evaluation method uses ratio analysis, which consists of ratios; Liquidity, activity, solvency and profitability. The results of the calculation of the liquidity ratio show that the company's ability to pay short-term loans from the company is getting better. The activity ratio shows that the company's ability to manage inventories to make materials better. The solvency ratio indicates that the amount of debt in the company is getting bigger and it is a heavy burden for the company to pay it. The profitability ratio provides positive expectations for shareholders because the company's ability to obtain higher profits both from capital and from company assets.

Keywords: Financial performance, activity ratios, solvency ratios, liquidity ratios, profitability Ratios

1. Introduction

Metal and mineral sub-sector companies play an important role in the transformation of commodity-based natural resource economies into value-added products and relying on the manufacturing industry (Sivilianto & Endri, 2019). The transformation process occurs through rotation, which converts ore minerals from mining operations into value-added products, ranging from metals to finished goods in a manufacturing industry process chain, such as bauxite processed into alumina, aluminum ingots, billets, rods, wires, and cables (Widyawati & Endri, 2018). Dislocation is the desire of the state as outlined in Law no.

4/2009 concerning Mineral and Coal Mining. As for Law No. 3/2014 on Industry published in the same spirit in which the government can prohibit the export of natural resources in the context of the government's obligation to meet industrial raw materials. The rotation policy has shown rapid progress for the production of metals, especially non-ferrous metals such as nickel.

The important role of the metal and mineral sector has a positive impact on the company's financial performance with the optimal achievement in profit and revenue achieved (Apriani et al., 2020). Based on data published by the Indonesia Stock Exchange (IDX), recorded the condition of liabilities in mining companies in the metal and mineral sub-sector which showed the highest total liabilities as of December 30, 2019, was a PT. Cita Mineral Investindo Tbk and recorded a loss before tax in 2015 to 2016. Inversely with the company

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PT. Timah Tbk, which recorded a company's liability of Rp.8,596,067,000,000 but posted a profit before tax which increased from 2015 to 2017. PT Timah's latest data posted a net profit that can be distributed to the owners of the parent entity or a net profit of Rp 301 billion in quarter I-2019, an increase of almost six times compared to the achievement in the first quarter of 2018 of Rp 55 billion, with operating revenue growing at 108% yoy per year.

Table 1.Total liabilities of the Metal and Mineral Mining Sub Sectors

No. CODE Total Liabilities Per 31 December 2018

1 ANTM Rp.13.567.160.084 2 CITA Rp.724.987.180.923 3 DKTF -Rp. 120.917.184.783

4 INCO $318.725

5 MDKA $375.656.245 6 PSAB $ 546.490.283 7 TINS Rp.8.596.067.000.000 Source: Data processed (2020)

Table 2. Profit/loss Before Corporate Tax on Metals and Minerals

Stock Code

Years

2015 2016 2017

ANTM -Rp1.668.773.924.000 Rp237.291.595 Rp454.396.524

CITA -Rp341.237.589.644 -Rp265.247.346.551 Rp47.493.344.496 DKTF -Rp43.946.332.399 -Rp79.895.963.246 -Rp58.730.253.510 INCO $69828000 $1,906 $15,271 MDKA $9054431 -$6437704 $63091039 PSAB $57769005 $40.504.896 $27.979.164 TINS Rp168.163.000.000 Rp414.970.000.000 Rp716.211.000.000 Source: Data processed (2020)

2.Literature Review 2.1. Financial statements

Financial Report is a recording of business transactions and the results of the accounting process used to communicate financial data or company activities to those in need (Kasmir 2017). The financial statements are used to provide information that contains financial position, company performance and can be taken into consideration in making decisions (Rinaldo & Endri, 2020).

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Evaluation of financial statements aims to understand the risk and profitability of the company through an analysis of the achievement of financial ratios. According to Gitman (2006) there are four types of financial reports, namely; income statement, balance sheet, shareholder equity statement, and cash flow statement. Financial statement analysis is a way to evaluate financial statements with various ratios including ratios; profitability, debt, liquidity, and the market. Analysis of financial statements can provide useful information for investors in making their investment decision in certain companies (Iswanto et al., 2020). In addition, the analysis of financial statements is a method for determining the achievement of past, current, and future prospects based on the financial statements for a certain period of time (Endri et al., 2020)

2.2. Financial Ratios

According to Delen et al., (2013), financial ratios are the relative magnitudes of the two numerical values obtained from the company's financial statements. There are many ratio standards used to evaluate the financial condition of a company or organization as a whole.

Financial ratios can be used by company managers, shareholders, and corporate creditors.

According to Gitman (2006), ratio analysis includes methods of calculating and interpreting financial ratios to analyze and monitor company performance from period to period. Financial ratio analysis allows comparisons between companies in the same industry to analyze trends and financial comparison of a company with other companies. When comparing financial ratios, companies must be comparable in terms of having the same characteristics (Endri et al., 2019).

2.3. Liquidity Ratio

Ratio that shows the relationship between current assets and current debt in a company. The purpose of this ratio is to determine the company's ability to pay off current liabilities that are due soon (Shahnia & Endri, 2020).

2.4. Activity Ratio

Ratio that shows the level of a company's ability to allocate existing assets and resources efficiently. The high level of efficiency is demonstrated by the optimal use of company assets, by reducing the possibility of assets being unemployed (Firdaus & Endri, 2020).

2.5. Solvency Ratio

The ratio used to measure the investment of companies financed with debt. The solvency ratio measures the ratio between capital from debt or assets. When a lot of debt and payment is smooth, it will benefit the creditor. Meanwhile, if more assets, the level of ability of the company will be increasingly trusted by investors (Endri & Yerianto, 2019).

2.6. Profitability Ratio

Ratio that shows the company's ability to use assets efficiently to generate profits for the company owner. The profit is obtained by the difference between the total sales and the operational and financial costs (Endri, 2018; Sari & Endri, 2019).

2.7. Previous research

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According to Fachrudin (2011), company performance shows the company's ability to provide profits from assets, shares, and liabilities. Financial performance evaluation is a measurement of the financial statements that have been made by the company to assess the financial condition after the company's activities are carried out at a certain time. Financial ratios become financial analysis instruments that measure the mathematical relationship between two accounts of a company's financial statements (Subramanyam & Wild (2008).

The results of the calculation of this ratio analysis are useful as information relating to financial conditions that can be input for helping investors and creditors in making decisions or considerations about the company's achievements and future prospects (Endri, 2019).

Ratios commonly used are liquidity ratios, activity ratios, solvency ratios, profitability ratios and market ratios.

Study of Anwar et al., (2020) found that liquidity ratios through quick ratio, current ratio calculations, in the financial condition of PDAM Ogan Komering Ulu Regency from 2014- 2017 only in 2015 were below the industry standard. From the calculation of the cash ratio in 2014-2017 is below the industry standard. However, if averaged the results of a quick ratio of 903.5%, current ratio of 1,008.75% and cash ratio of 58.75%, it can be said that the company's condition has exceeded industry standards. Study of Prabowo & Korsakul (2019) evaluates financial performance using ratio analysis and DuPont shows the tendency of fluctuating ratio numbers to almost all mining companies during the evaluation period. With a high liquidity ratio the higher shows the ability of a good company in meeting its current liabilities. The higher activity ratio means that the company is more efficient in using its assets. For a high solvency ratio, it is not good for the company because it shows a large amount of debt and risks the ability to pay, namely the possibility of failure in repayment.

High profitability ratio shows that the company is able to operate efficiently so as to generate large profits. For the DuPont system through ROI and ROE indicators can determine how the company can manage assets efficiently and be able to provide operating profit in accordance with the expectations of shareholders (Sugianto et al., 2020).

Study of Septiaria & Nasution (2016) evaluates the effect of financing company operations with debt on company performance in oil and gas companies. Empirical findings prove that the increase in debt to equity does not affect the company's financial performance through indicators of earnings per share, net profit margins and return on equity. Large financing from debt to fulfill company operations does not necessarily improve financial performance.

Research by Maith (2013) about financial statement analysis in measuring financial performance at PT. Hanjaya Mandala Sampoerna Tbk recorded a current ratio in 2009 of 188.06% and in 2010 161.25% of these results showed a decline and not good for the company. While the debt to asset ratio in 2009 was 40.92% and in 2010 it was 50.23% which showed an increase in debt. In the 2009 activity ratio of 2.19 x and in 2010 amounted to 2.11 x, this shows a decrease and the impact is not good for the company.

Rehman (2013) conducted a study of the financial capability of companies in debt repayment showing findings that answered the financial performance of earnings per share, return on capital ratios and net profit margins. While the research of Akhtar et al., (2012) shows positive results on financial performance as measured by earnings per share, capital returns and net profit margins. Trianto (2017) noted in his research the current ratio in 2014 that the percentage is above the industry average has a value of 207.11%, this shows a good financial condition. While the ratio of debt to assets has a percentage above the industry average which

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shows the percentage of bad companies, which have corporate funding financed by debt. The profitability ratio of investment returns has a value above the industry average.

3. Research Methods

The type of research method used in this study is quantitative descriptive research. The object that became the research material is the mining company Sub sectors Metal Fund listed on the Indonesia Stock Exchange (IDX) for 2014-2018. The Data is derived from the financial statements issued by companies listed in IDX from 2014-2018. The research object consists of 10 sampling companies. The technique used is the purposive sampling method. Samples are selected based on specific criteria. The criteria used are listed in IDX for 2014-2018.

Publish the consolidated financial statements during the study. Based on these criteria, the 7 companies of the metals and minerals sub-sector are obtained: The ratio used is liquidity, activity, solvency and profitability.

Table 3. Code and Company Name

No. Code Company Name

1 ANTM PT. Aneka Tambang Tbk

2 CITA PT. Cita Mineral Investindo Tbk 3 DKTF PT . Central Omega Resources Tbk 4 INCO PT. Vale Indonesia Tbk

5 MDKA PT. Merdeka Copper Gold Tbk 6 PSAB PT. J Resources Asia Pasifik Tbk

7 TINS PT. Timah Tbk

The operational definition of the model is as follows:

Liquidity ratio

 Current ratio (CR)

The current ratio is a ratio that measures the company's decompression to pay the debt- term obligations that will be due soon.

 Quick ratio (QR)

The quick ratio is the ratio used to measure the ability of a company in using current assets to cover current debt that will soon be due.

CR = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 X 100%

QR = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 –𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 X 100%

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Activity ratio

 Total Asset Turnover (TAT)

The Total asset turnover ratio is a ratio that measures the company's ability to achieve a conversion using the entire Total assets owned by the company.

 Fixed Asset Turnover (FAT)

Rotation ratio of fixed assets is the methodology carried out by analysts to measure the success of the performance of the business being run. In other words, this method can calculate how efficient a business is in carrying out its operations in a period. Back again, the purpose of using it is to get maximum results.

Raio Solvency

 Debt To Asset Ratio (DAR)

Debt to asset ratio is a ratio that measures how much of an asset comes from a loan or credit. This ratio serves to calculate the comparison between total debt and total assets.

 Debt To Equity Ratio (DER)

Debt to equity ratio is a ratio that measures the comparison between total debt and total capital. This ratio serves to measure the company's ability to fulfill the obligations of its own corporate capital.

TAT = 𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠

𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 = ... time 365 days

FAT = 𝑁𝑒𝑡 𝑠𝑎𝑙𝑒𝑠

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 = ... time 365 days

DAR = 𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡

DER = 𝑡𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡 𝐸𝑞𝑢𝑖𝑡𝑦

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Profitability ratio

 Return On Asset (ROA)

Return on Asset is a ratio used to power the company's strength in the benefit of the use of Asset as well as capital on stocks.

 Return On Equity (ROE)

Return on Equity is a ratio used to measure the company's scale in obtaining profit by utilizing equity capital already invested by shareholders.

4. Results and Discussion

4.1. Liquidity Ratio

 Current ratio

From the results of the calculation can be seen the average results of the company's industry current ratio in the year 2014-2018 of 3.104316559, 3.104316559, 2.009017448, 1.57942397, 1.313749176. From the industry average from year to year the company has decreased. The company with the highest Current ratio is PT. Central Omega Resources TBK has a value of 15.0953894 in 2015 but decreased in 2016- 2018. This shows the increasing current assets will increase the current debt to cause the company's liquidity level to decline.

Table 4. Mining company Current Ratio Data Sub sectors of metals and minerals 2014-2018

No CODE

Current Ratio

2014 2015 2016 2017 2018

1 ANTM 1,642051696 2,59321729 2,442430061 1,62125186 1,541879016 2 CITA 1,521448167 1,01847055 1,162250156 0,287561199 0,195233101 3 DKTF 13,29389359 15,0953894 1,629637218 0,800383649 0,816233238 4 INCO 2,982072076 4,04016862 4,53942374 4,617602475 3,598711076 5 MDKA 0,056003519 1,55329098 2,091273869 0,907358294 0,845183021 6 PSAB 0,386081809 0,29282447 0,48706167 0,765406922 0,708733906 7 TINS 1,848665052 1,81536656 1,711045422 2,05640339 1,490270878 Average 3,104316559 3,77267541 2,009017448 1,57942397 1,313749176

ROA = 𝑃𝑟𝑜𝑓𝑖𝑡 𝐴𝑓𝑡𝑒𝑟 𝑇𝑎𝑥 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

ROE = 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝐸𝑞𝑢𝑖𝑡𝑦

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Source: Data processed (2020)

 Quick ratio

From the results of the calculations can be seen the average results of the industry companies in 2014-2018 are 2.61205923, 3.31579083, 1.506967114, 1.134594277, 0.925089981. From the results, it can be seen that 2015 years of improvement, but the year 206 to 2018 suffered a drastic decline. The company that has the highest quick ratio is PT.

Central Omega Resources TBK. This shows how many assets cannot cover the debt smoothly. This shows a decrease in the liquidity level of the corporation.

Table 5. Mining company Quick Ratio Data Sub sectors of metals and minerals 2014-2018

No CODE

Quick Ratio

2014 2015 2016 2017 2018

1 ANTM 1,18594869 2,1893337 2,12342374 1,39472439 1,3136781- 2 CITA 0,75836788 0,3561552 0,38826355 0,11940637 0,07155289 3 DKTF 12,9574159 14,880829 1,31984360 0,38429845 0,46022564 4 INCO 2,31367628 3,3393828 3,55603876 3,70711524 2,84714840 5 MDKA 0,05444162 1,5519636 2,03590437 0,61187224 0,36764831 6 PSAB 0,12871798 0,1120071 0,16860122 0,40587662 0,33141816 7 TINS 0,88584625 0,7808645 0,95669456 1,31886663 1,08395838 Average 2,61205923 3,3157908 1,50696711 1,13459428 0,92508998

Source: Data processed (2020) 4.2. Activity ratio

 Total Asset Turnover

Based on the calculation, it can be seen that the average industry turnover of total assets in companies in 2014-2018 was -0.21261, -0.10512, -0.06762, 0.06905, 0.242479. From these results show a decline in 2016, this shows the low inventory turnover in the company so that it affects the company's activities. Since the year 2018 experiencing an increase, this shows the ability of the company in managing supplies is getting better. The company which has total assets turnover of PT. Aneka Tambang Tbk. This ratio shows the higher sales, the ratio will be higher where sales that produce a lot of products to maintain inventory stability, so that market needs are met.

Table 6. Mining company assets Total Turnover Data Sub sectors of metals and minerals 2014-2018

NO CODE

Total Asset Turnover

2014 2015 2016 2017 2018

1 ANTM -0,08547 -0,11745 0,007105 0,005791 1,2270168 2 CITA -0,22945 -0,23632 -0,44527 0,108494 -4,1040719 3 DKTF -0,43302 -0,25454 -0,08691 -0,03316 2,6212745 4 INCO 0,107099 0,031498 -1,3E-05 -0,01022 0,0012537 5 MDKA -1,27384 -0,27676 -0,029 0,357652 -0,0810731 6 PSAB 0,092763 0,117685 0,080623 0,054587 1,4769599 7 TINS 0,333648 4,57E-05 0,000113 0,000204 0,5559957 Average -0,21261 -0,10512 -0,06762 0,06905 0,242479

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 Fixed Asset turnover

Based on the calculation results, it can be seen that the average fixed assets of 2014-2018 are -0.00255, -0.01862, -0.01767, 0.0182, 0.046726. From these results it shows an increase in the company's fixed assets turnover. This indication shows that the higher the ratio, the better the condition of the company. Conversely, if this ratio is low, the company's condition is experiencing obstacles, and must think about new business strategies. This concept can affect the level of investors (investors) in investing in companies. The company which chooses the fixed assets turnover namely PT. Timah Tbk which shows an increase from year to year.

Table 7. Mining company fixed asset turnover Data Sub sectors of metals and minerals 2014-2018

NO CODE

Fixed Asset Turnover

2014 2015 2016 2017 2018

1 ANTM -0,03379 -0,04746 0,003071 0,002719 0,03893

2 CITA -0,076 -0,07978 -0,0973 0,017733 0,202328

3 DKTF -0,03922 -0,03428 -0,04645 -0,01967 -0,03514 4 INCO 0,073803 0,022061 -9E-06 -0,00699 0,027502 5 MDKA -0,04124 -0,02856 -0,00907 0,116302 0,072533 6 PSAB 0,030206 0,037703 0,026052 0,017257 0,020895 7 TINS 0,068367 1,09E-05 2,64E-05 4,23E-05 3,51E-05 Average -0,00255 -0,01862 -0,01767 0,0182 0,046726

Source: Data processed, 2020 4. 3. Solvency Ratio

 Debt To Asset Ratio (DAR)

Based on calculations, the average value of the DAR industry in 2014-2018 was 4.680266, 0.990865, 0.995062, 1.641449, 1.602866. From these results can be seen the decline rate in the company. The results showed a good percentage of the debt level during the research period. However, in the company PT. Timah TBK increased, this shows that the percentage of debt in the company is greater than the assets owned. On the other hand the smaller the percentage of this ratio of Fed debt (creditors) is less than the company's assets.

The larger the company's debt level of creditor confidence in the company will be increasing on the other side more and more debt the company's liabilities level is increasingly greater.

Table 8. Data Debt To Asset Ratio Mining Company Sub sectors of metals and minerals 2014-2018 NO CODE

Debt To Asset Ratio (DAR)

2014 2015 2016 2017 2018

1 ANTM 0,452378 0,39662 0,893031 0,817702 0,674039 2 CITA 1,239348 1,256214 0,029602 4,029136 3,188938 3 DKTF 0,052504 0,302341 0,660278 0,816447 1,143831 4 INCO 0,341206 0,283917 0,249961 0,000244 0,222184 5 MDKA 25,97852 1,012421 1,525444 1,503807 1,390538 6 PSAB 2,0485 1,927363 1,853509 1,96136 1,814291

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7 TINS 2,649401 1,75718 1,753609 2,361449 2,786243 Average 4,680266 0,990865 0,995062 1,641449 1,602866 Source: Data processed (2020)

 Debt To Equity Ratio (DER)

Based on the calculation results, it can be seen that the industry average Debt to equity ratio in 2014-2018 is 1.473341, 1.614142, 1.493349, 1.631959, 1.477541. From this result no significant change did not go too far and not go up too much. But it can be seen in the company PT. Merdeka Copper Gold Tbk which has decreased from year to year. This ratio shows that the greater the ratio of funding shows the company financed by creditors the greater. Conversely the smaller the ratio of corporate funding by creditors, the greater the funding is financed from the company's own capital.

Table 9.Data Debt To Equity Ratio Mining Company Sub sectors of metals and minerals 2014-2018

CODE 2014 2015 2016 2017 2018

1 ANTM 0,826078 0,65733 6,286528 0,623235 0,68732 2 CITA 0,696356 0,736373 0,018315 1,928667 1,179488 3 DKTF 0,004993 0,042451 0,545435 0,939015 1,466946 4 INCO 0,307411 0,248276 0,213074 0,200725 0,169199 5 MDKA 5,287587 0,116672 0,912356 0,95699 0,889858 6 PSAB 2,003354 1,614142 1,493349 1,631959 1,477541 7 TINS 1,187612 0,727717 0,688922 0,959304 1,318035 Average 1,473341 0,591852 1,45114 1,034271 1,026912 Source: Data processed (2020)

4.4. Profitability Ratio

 Return On Asset (ROA)

Based on the calculation, it can be seen that the average Return on Asset in 2014-2018 is 0.006297, 0.00751, -0.01214, 0.013297, 0.053842. These results do not show a significant increase or decrease. Can be seen the highest return in the company PT. Cita Mineral Investindo Tbk which has a return of 0.179039, and the lowest return of PT. Merdeka Copper Gold Tbk, which has a return of -0.00157, this indication shows less good because it shows the lack of ability of the company to manage assets to sort out profits.

Table 10.Data Return On Asset (ROA) mining Company Sub sectors of metals and minerals 2014-2018

NO CODE 2014 2015 2016 2017 2018

1 ANTM 0,026803 0,077525 0,003071 0,002719 0,03893

2 CITA -0,076 -0,0429 -0,12089 -0,01807 0,179039

3 DKTF -0,03853 -0,02353 -0,04645 -0,01967 -0,03521

4 INCO 0,073321 0,021232 0,028398 -0,00697 0,029225

5 MDKA -0,04011 -0,02932 -0,00157 0,082109 0,108063

6 PSAB 0,030218 0,038623 0,026102 0,010647 0,021706

7 TINS 0,068367 0,010944 0,026388 0,042304 0,035147

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Average 0,006297 0,00751 -0,01214 0,013297 0,053842

 Return On Equity (ROE)

ROE calculation can be seen that the average industry Return on Equity of the company is -0.0052, 0.020766, 0.012438, 0.025229, 0.106096. From these results there was no significant increase or decrease. Can be seen the highest return on the company PT. Cita Mineral Investindo TBK with a figure of 0.390213. And the lowest in the company PT.

Merdeka Gold TBK-0.0030. These results indicate that the higher the ratio of corporate returns to investment. Conversely the smaller this ratio, the smaller profits will be generated.

This ratio is often used by shareholders as a consideration for growing capital.

Table 11.Data Return On Equity (ROE) mining Company Sub sectors of metals and minerals 2014-2018

NO CODE 2014 2015 2016 2017 2018

1 ANTM 0,048945 0,130741 0,050018 0,004414 0,065687 2 CITA -0,12892 -0,07449 -0,34229 -0,05291 0,390213 4 DKTF -0,04045 -0,02453 -0,07179 -0,03813 -0,08687 5 INCO 0,095861 0,026509 0,344491 -0,00837 0,034169 6 MDKA -0,25217 -0,03274 -0,00301 0,160687 0,204224 7 PSAB 0,090757 0,100967 0,065083 0,028024 0,053777 9 TINS 0,14956 0,018909 0,044567 0,082887 0,081472 Average -0,0052 0,020766 0,012438 0,025229 0,106096 Source: Data processed (2020)

5. Conclusion

In this study, testing the financial ratio analysis of Metal and Mineral Sub Sector Mining companies listed on the Indonesia Stock Exchange in 2014 to 2018. Based on the analysis results, it can be concluded that the liquidity ratio, the higher the ratio of Current ratio and Quick ratio shows that the company's ability to pay debts the short term the company is getting better. Activity ratio, the higher the ratio of total assets and asset turnover of the company's fixed assets shows the company's ability to manage inventory, to make the material better. Then the company market demand will always be there. Solvency Ratio, the higher the Debt to Asset ratio, the more the amount of debt in the company. The higher the Debt to Equity ratio, the higher the level of activity financed by debt. Profitability ratios, the higher ROA and ROE shows the company's ability to get higher profits from capital or from company assets.

As for suggestions that can be given to interested parties namely for further researchers to be able to develop by expanding both in the Metal and Mineral Mining Sub-Sector, as well as in other mining fields and other sectors, so that this research can be used as further reference material. For students, the results of this study can be used as additional literature to develop research conducted in the future. For the academic world, it is expected to be able to develop performance measurement methods using a more comprehensive financial ratio.

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