FINANCIAL ANALYSIS IN INVESTMENT DECISION-MAKING IN TRANSPORTATION SUB-SECTOR COMPANIES YEAR (2019-2023)

Abstract

This study aims to analyze the financial performance of transportation sub-sector companies listed on the Indonesia Stock Exchange during the 2019-2023 period through  the Return On Assets (ROA) and Debt Ratio approaches. This approach is used to evaluate a company's level of profitability and financial risk, which is an important aspect of investment decision-making. The results show that companies such as Eka Sari Lorena Transport Tbk (LRNA) and Express Transindo Utama Tbk (TAXI) recorded negative ROAs for four to five years, indicating significant financial difficulties and impacting a decrease in investment attractiveness. In addition, the high debt ratio of companies such as Steady Safe Tbk (SAFE) reflects a heavy reliance on external funding, thereby increasing financial risk. The implication of this study is that it is a source of information that presents a financial analysis of investment decisions in transportation sub-sector companies listed on the Indonesia Stock Exchange and alternative steps in strategies to increase profitability, as well as debt management to reduce financial risks.