Enhancing Investment Through Profitability Assessment

Abstract

The study aims to analyze the profitability of PT Indofood Sukses Makmur Tbk, a leading company in the food sector, by focusing on its Return on Assets (ROA) performance from 2017 to 2021. This quantitative research uses secondary data obtained from the company's financial statements available on the Indonesia Stock Exchange (IDX) website.The analysis reveals that PT Indofood Sukses Makmur Tbk demonstrated positive growth in ROA over the five-year period. The ROA remained stable at 0.08% in 2017 and 2018, increased to 0.09% in 2019, but then slightly declined back to 0.08% in 2020 and 2021. Despite this minor fluctuation, the overall trend indicates a stable and slightly improving profitability performance during the studied timeframe.This consistent ROA performance reflects the company's ability to efficiently utilize its assets to generate profits, even amidst challenges such as fluctuating commodity prices and global economic uncertainties. The findings highlight PT Indofood Sukses Makmur Tbk's resilience and effective financial management within the competitive food industry.