Horizontal Analysis and Growth Trends in Assessing the Development of Financial Performance of PT Cisarua Mountain Dairy Tbk (Cimory)

Abstract

This study aims to analyze the company’s financial performance using horizontal and trend analysis based on financial statements over the 2021-2025 period. The research employs a quantitative descriptive approach using secondary data from published financial reports to evaluate growth patterns, financial structure, and earnings quality. The results of the horizontal analysis show that total assets increased consistently, although at a slowing rate in the final period, with growth primarily driven by a significant rise in liabilities rather than equity, indicating increasing financial leverage. In addition, fluctuations in current assets, particularly declining cash balances and rising inventories and receivables, suggest potential liquidity risks due to funds being tied up in less liquid assets. Meanwhile, trend analysis indicates that revenue and net income generally increased, but not in a stable manner, as the cost of goods sold at certain periods grew faster than revenue, reflecting inefficiencies in cost management. Furthermore, the difference in growth rates between operating income and net income implies that profit growth was not entirely generated from core business operations, raising concerns about earnings quality. Overall, although the company demonstrates positive financial growth, the findings highlight potential risks related to liquidity, solvency, operational efficiency, and the sustainability of earnings, suggesting the need for improved financial management to support long-term stability.