Financial Performance Analysis of Muhammadiyah Kedungadem Main Inpatient Clinic Based on Profitability, Liquidity, and Solvency Ratios for the 2021–2025 Period

Abstract

This study aims to analyze the financial performance of the Muhammadiyah Kedungadem Main Inpatient Clinic based on profitability, liquidity, and solvency ratios during the 2021–2025 period. The ratios used include Net Profit Margin (NPM), Current Ratio (CR), and Debt to Asset Ratio (DAR). This study employed a quantitative approach with a descriptive method. The data used were secondary data obtained from the financial statements of the Muhammadiyah Kedungadem Main Inpatient Clinic for the 2021–2025 period and collected through documentation. The analysis was conducted by calculating and comparing the development of each financial ratio annually. The results showed that NPM increased from 0.11% in 2021 to 5.13% in 2024, before decreasing to 2.42% in 2025. CR fluctuated from 3.92 times in 2021 to 9.06 times in 2025, indicating a good ability of the clinic to meet its short-term obligations. DAR increased from 43.54% in 2021 to 45.07% in 2023, then decreased to 33.42% in 2024 and increased to 35.07% in 2025. Overall, the clinic's financial performance during the 2021–2025 period was considered fairly good, although improvements in profitability and financial management efficiency are still needed