Vertical Analysis of Financial Statements in Evaluating the Financial Performance of PT Medco Energi Internasional Tbk

Abstract

This study aims to analyze the financial performance of PT Medco Energi Internasional Tbk for the period 2021–2025 using vertical analysis of the balance sheet and income statement. The method applied is descriptive quantitative, utilizing secondary data from the company’s financial statements. The results show that the company’s asset structure is dominated by non-current assets, which tend to increase, while current assets decline, indicating potential liquidity risks. On the funding side, the company demonstrates a high dependence on long-term liabilities, particularly bank loans, although this is balanced by strengthened equity through retained earnings. Meanwhile, the income statement analysis reveals fluctuating profits with a downward trend after 2022, reflected in declining gross and net profit margins, despite relatively controlled operating expenses. Overall, the company’s financial performance is considered stable in terms of capital structure, but faces challenges in liquidity and profitability, requiring optimization of financial management.