The Comparison of Financial Performance and Financial Distress Analysis Between PT Hanjaya Mandala Sampoerna Tbk with Other Companies in Cigarette Industry During Covid-19 Pandemic

Abstract

The pandemic of Covid-19 hit all sectors including economic and industry. This situation led to contract payment delay, lower utilization rate of asset and employees, production and distribution delay, lower supply and purchasing power where people start to prioritize their expenditure. The cigarette industry supposed to not really affected by the pandemic since it still ranks second as the thing most people bought during the pandemic. However, the market leader company in this industry is the only company who experience lower income and generate more liabilities during the pandemic among the industry. Therefore, financial performance and financial distress analysis should be conducted in order to see the company’s position throughout the industries. It aims to give information regarding this company’s position and recommendation for further development. This research uses financial ratio analysis including profitability, liquidity, debt, and activity ratios to determine the financial performance analysis. While the financial distress analysis uses Altman Z-Score. The result shows that this market leader company has higher score compared to others but they indeed experienced decrement during the pandemic. It gives spaces for development to this company.

Keywords: Financial performance, financial distress analysis, financial ratio, Altman Z-Score