Analysis of Debt Management and Repayment Capacity at PT Garuda Indonesia Tbk in 2025

This study aims to thoroughly analyze the debt management and repayment capabilities of PT Garuda Indonesia Tbk for the year 2025. Employing a descriptive qualitative research method with a secondary data analysis approach derived from the company's official financial statements, this study evaluates solvency indicators such as the Debt to Asset Ratio (DAR) and Debt to Equity Ratio (DER), alongside liquidity metrics including the Current Ratio, Cash Ratio, and operating cash flows. The findings reveal a significant post-pandemic financial recovery trend, driven by successful debt restructuring initiatives and capital injection through Series D stock issuance worth USD 1,419.8 million. The DAR successfully decreased from 120.43% in 2024 to 98.76% in 2025, while the company's total equity bounced back into positive territory at USD 91.9 million following a severe previous deficit. Regarding debt repayment capacity, short-term liquidity recovered drastically, with the Current Ratio surging from 47.21% to 105.20% and the Cash Ratio jumping from 18.7% to 69.97%, underpinned by a 330.4% increase in cash position. Although profitability remained negative with a net loss of USD 319.4 million due to heavy financial charges inherited from the restructured debt, net cash provided by operating activities stayed robustly positive at USD 468.4 million. Overall, PT Garuda Indonesia Tbk is on a concrete path toward financial recovery, though management must continuously reduce debt dependency and enhance operational efficiency to achieve long-term stability.