FINANCIAL ANALYSIS OF MICROFINANCE INSTITUTION: A CASE STUDY IN LKM-A PUAP SUBUR PURBALINGGA REGENCY

M A Rachmah; L Zulkifli; D R Utami

M A Rachmah Department of Agricultural Socio-Economic, Faculty of Agricultural, Universitas Jenderal Soedirman, Purwokerto, Indonesia
L Zulkifli Department of Agricultural Socio-Economic, Faculty of Agricultural, Universitas Jenderal Soedirman, Purwokerto, Indonesia
D R Utami Department of Agricultural Socio-Economic, Faculty of Agricultural, Universitas Jenderal Soedirman, Purwokerto, Indonesia

Abstract

The Rural Agribusiness Development Program (PUAP) is a government program that aims to stimulate the development of Agribusiness Microfinance Institutions (LKM-A) so that they can provide sustainable financing to farmers. This study aimed to determine the financial performance of LKM-A PUAP Subur in Purbalingga Regency in 2019-2022. The study was conducted from April to June 2024 and included direct interviews with the management of LKM-A PUAP Subur in Purbalingga Regency. Data analysis was in the form of liquidity ratios, solvability, and profitability. The results of the liquidity analysis of LKM-A PUAP Subur during the 2019-2022 period showed that the cash ratio and the ratio of financing to funds received were liquid, which means that LKM-A PUAP Subur's ability to pay off its short-term debts was quite good so that the performance of LKM-A PUAP Subur was good. Solvency analysis with debt to assets and debt to equity criteria is not good, which means that LKM-A PUAP Subur's ability to pay off its long-term debts is not good, so it can be said that its performance is not good. The profitability ratio analysis using the net return on assets ratio and return on equity ratio shows fairly good criteria, which means that the performance of LKM-A PUAP Subur is good in generating operating profits.