Analysis of Financial Ratios in the Drinking Water Company (PAM) Tirta Mangkaluku, Palopo City

This study aims to determine and analyze financial ratios (liquidity, solvency and profitability ratios) in the Drinking Water Company (PAM) Tirta Mangkaluku) Palopo City. The type of data used in this study is secondary data, where the data relates to the financial reports obtained from the Drinking Water Company (PAM) Tirta Mangkaluku Jalan Pongsimpin, Murante Village, Mungkajang District, Palopo City for the period 2014 – 2016. Based on the results of the study, it was found that Current The ratio cannot increase the added value of PAM Tirta Mangkaluku, Palopo City, but because the Current ratio (CR) is more than 100%. Thus, the company can pay off its current debt when billed. The Quick Ratio (QR) cannot increase the added value of PAM Tirta Mangkaluku Palopo and the results of current assets minus inventory are higher than current liabilities so that the company is able to pay off its current debts when billed. The debt to total asset ratio (DR) can increase the added value of PAM Tirta Mangkaluku, Palopo City, because the total assets are more than the total debt, so the company can pay off its total debt. The Debt to Equity Ratio (DER) can increase the added value of PAM Tirta Mangkaluku, Palopo City, because the total assets are more than the total debt, so the company can pay off its total debt. Economic Profitability (RE) cannot increase the added value of PAM Tirta Mangkaluku, Palopo City. Based on the calculation results of Own Capital Profitability (RMS) for the last 3 years from 2014 to 2016 there has been a fluctuating increase, the result is that Own Capital Profitability can increase added value to PAM Tirta Mangkaluku Palopo City.