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This study analyzes the profitability of PT Indo Kordsa Tbk during 2023–2025 using secondary data from annual reports and consolidated financial statements. The analysis focuses on Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE), complemented by DuPont decomposition and an assessment of net income sensitivity to revenue. The findings show consistent deterioration in profitability, with all three ratios turning negative in 2025. NPM declined from 6.93% to −0.62%, ROA from 5.84% to −0.29%, and ROE from 7.72% to −0.35%. Consequently, the company recorded its first net loss during the observed period. This deterioration coincided with a substantial decline in net revenue in 2025. According to the annual report, flooding at the Citeureup plant in March 2025 disrupted production, alongside challenges associated with weaker demand, exchange-rate movements, and operating expenses. Because this study uses a descriptive approach, these circumstances are interpreted as reported operational factors rather than independently established causes of declining profitability. Meanwhile, total equity remained relatively stable, and total assets decreased considerably less than revenue. This pattern suggests that deteriorating profitability primarily reflected weakened earnings capacity rather than a substantial contraction of the capital base. The DuPont perspective further connects profitability with profit margins, asset turnover, and financial leverage. These findings underscore the importance of restoring production and sales volumes while maintaining cost control to support recovery and improve resilience against future operational disruptions.
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Anindya et al. (2026) studied this question.
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