THE IMPACT OF THE COVID-19 PANDEMIC ON THE FINANCIAL PERFORMANCE OF PHARMACEUTICAL COMPANIES LISTED ON INDONESIA STOCK EXCHANGE

Abstract

The COVID-19 pandemic was announced by the Indonesian government on March 2nd, 2020 has an impact on almost all aspects of life. To prevent the COVID-19 pandemic from spreading, the government has adopted the LSSR, CARE, and Vaccination policies. This situation has an impact on companies, for pharmaceutical companies, this is expected to have a positive impact. This study aimed to find out the impact of the COVID-19 pandemic and analyze differences in financial performance as measured by Current Ratio/CR, Debt Ratio/DR, Total Asset Turnover/TATO, Return on Equity/ROE, and Price Earning/PE in pharmaceutical companies listed in Indonesia Stock Exchange 2019-2020. By using a paired sample t-test, the following were found: the financial performance of pharmaceutical companies as measured by CR decreased during the COVID-19 pandemic. Meanwhile, financial performance as measured by DR, TATO, ROE, and PE increased during the COVID-19 pandemic. There was no difference in the financial performance of pharmaceutical companies as measured by CR, DR, TATO, ROE, and PE between before the COVID-19 pandemic and during the COVID-19 pandemic.

Keywords

• current ratio
• debt ratio
• total asset turnover
• return on equity
• price earning