Analysis of the Impact of the Covid-19 Pandemic on Financial Health in

the Property and Real Estate Industry

(Case Study: Property and Real Estate Company Listed on the Indonesia
Stock Exchange)

Bayu Surya Pamugar Sugeng1

Sekolah Tinggi Manajemen IPMI, Jakarta 12750
1
Email: bayu.pamugar@ipmi.ac.id

Wiwiek Mardiyah Daryanto2

Sekolah Tinggi Manajemen IPMI, Jakarta 12750
2
Email: wiwiek.daryanto@ipmi.ac.id

ABSTRACT
The property and real estate industry was put under significant strain in 2020 as a result of the
Covid-19 pandemic, which resulted in a 21.23 percent drop in shares, the highest among the
industrial stock groups listed on the Indonesia Stock Exchange (IDX). The purpose of this
study is to examine the financial health of companies in the property and real estate sectors
before and during the Covid-19 pandemic using the company’s financial health ratio approach.
The financial health ratios used include profitability, liquidity, solvency, activity, and
valuation. The analytical method used in this study is a comparison method with the Cross-
Sectional Approach on the industry average. According to the findings of this study, the Covid-
19 pandemic has had an impact on the performance of property and real estate companies, as
evidenced by a decrease in financial ratio indicators. The findings of this study can be used by
company executives as a foundation for decision-making in facing economic uncertainty.

Keywords: Covid-19, Property, Real estate, Financial Ratio

JEL:

INTRODUCTION
The Covid-19 pandemic has had a major impact on the global and Indonesian national
economy. The slowing global economy had an impact on Indonesia’s economic growth
throughout 2020 which contracted by -2.07% (BPS, 2021). This condition had an impact on
the decline in other macroeconomic performance indicators, and one of them was the
weakening of the financial market. The value of the rupiah depreciated and the Indonesia
Composite Index fell by 5.09% throughout 2020 and shares in the property and real estate
industry by sector decreased by 21.23%.
The government has made various efforts to revitalize the property and real estate
industries through fiscal and monetary policies. The government’s fiscal policy is to relax
VAT, and its monetary policy is to lower the BI 7-Day Reverse Repo Rate (interest rate).
However, the policy has not been effective, as evidenced by Junaedi and Salistia’s (2020)
research, which states that the capital market has been impacted by the Covid-19 pandemic and
the policy of limiting economic activity. According to other research, a decline in property

1
business performance causes investors to be more selective in placing shares as a result of a
decrease in property purchases and demand, stagnant property prices, and a slowdown in the
distribution of House Ownership Credit (Dewi, et al., 2021). During the Covid-19 pandemic,
investors prefer to invest in the prima donna sector, which includes stocks in the consumer
industry, telecommunications, and health care, such as pharmaceuticals (Tambunan, 2020).
The decline in the performance of the property and real estate sectors on the Indonesian Stock
Exchange is a logical consequence of the rational choice of society which prioritizes the
fulfillment of basic physiological needs in the midst of a situation of economic uncertainty,
which is consistent with Maslow’s (1970) theory and Ramadhani’s research (2018).
The economic recession caused by the Covid-19 pandemic in 2020 had an impact on the
performance of the property and real estate industry sector, as evidenced by a drop in stock
prices. This, of course, has an effect on the financial health of these industrial companies. An
in-depth analysis of the company’s financial ratios can be performed to see the company’s
financial health. Several studies on financial health have been conducted using a financial ratio
analysis approach, including those by Adi and Daryanto (2021), Afriza and Daryanto (2019),
Daryanto et al. (2019; 2020a; 2020b; 2020c). To analyze the company’s financial health, these
studies typically employ the Profitability Ratio, Efficiency Ratio, Liquidity Ratio, Solvency
Ratio, and Valuation Ratio. Research has generally used only one or a few research objects;
however, this does not yet describe the state of financial health performance in an industry,
particularly the property and real estate industry.
With these consideration, this study attempts to use a broader object of research to describe
the financial health of companies in the property and real estate industries that are listed on the
Indonesian Stock Exchange. As a result, the research will be more representative and
comprehensive in describing the financial health performance of the property and real estate
industry.

LITERATURE REVIEW
Property and Real Estate
Property is all matters relating to land and buildings on it, as well as rights and rules related
to physical ownership of assets (Appraisal Institute, 2001). Harjono (2016) states that real
estate is defined as physical land and objects built by humans, which become one unit with the
land. In general, the real estate industry is a property company engaged in the provision,
procurement, and development of land for the purposes of industrial businesses, including the
tourism industry. According to Aji (2014), products from the property and real estate industry
are very diverse but it can be divided into two categories, first is landed property, for example
housing, apartments, shop houses, office buildings, and second is commercial building for
example shopping centers in form of malls, plazas, or trade centers.

Financial statements
According to Munawir (2010), financial statements are the results of the accounting
process that can be used as a tool to communicate between financial data or activities of a
company and interested parties through data or activities of a company. According to the
Institute of Indonesia Chartered Accountants (IAI) in the Implementation of Financial
Accountancy Standards Notice (PSAK) No. 1 (2015), complete financial statements include
the following components: a) statement of financial position at the end of the period; b)

2
statement of profit or loss from other comprehensive income during the period; c) statement of
changes in equity during the period; d) notes to financial statements; e) statement of financial
position at the beginning of the period.

Financial Performance
Munawir (2010) defines financial performance as an analysis of the company’s
financial ratios. Kasmir (2016) explains financial ratio analysis as the activity of comparing
numbers in financial statements by dividing one number by another. According to Harahap
(2013), financial ratios are numbers derived from a comparison of one financial statement
account with other accounts that have a relevant and significant relationship.
According to Daryanto et al. (2020), there are several types of financial ratios, including
profitability ratios, liquidity ratios, solvency ratios, efficiency ratios, and value ratios.
Profitability ratios, according to Brigham and Daves (2019), demonstrate the combined effect
of liquidity policies, asset management, and debt management on operating results.
Profitability ratio is indicated by net profit margin (NPM) (also known as profit margin on
sales), return on total assets (ROA), and return on equity (ROE). Then, Harahap (2013), as well
as Brigham & Daves (2019), stated that liquidity is a widely used measurement of a company’s
liquidity and short-term debt capability and is generally indicated by the Current Ratio and
Quick Ratio.
The solvency ratio displays the company’s financial liabilities if it is liquidated,
including both short-term and long-term financial liabilities. According to Shintia (2017),
several types of solvency ratios are commonly used by companies, including the Debt to Asset
Ratio (DAR) and the Debt to Equity Ratio (DER). Furthermore, the efficiency or activity ratio
is used to assess how effectively a company uses assets and liabilities to generate revenue.
Daryanto et.al (2020a) used the ratio of working capital turnover (WCT), Total Asset Turnover
(TAT), and inventory turnover to describe the condition of the activity ratio.
Value Ratio is usually used to analyze the attractiveness of an investment in a company,
and the ratio determines the fair value of a public company. Daryanto et.al (2020a) used the
ratio of earnings per share (Earning Per Share or EPS) and the ratio of price to income (Price
to Earning Ratio or PER) to describe the condition of the value ratio.

Average Industry
According to Martono and Agus (2007) sources of financial ratio analysis can be
divided into two, namely internal comparisons, external comparisons, and sources of industry
ratios which then compare the company's financial ratios with similar companies or with the
industry average at the same time. Sawir (2010) stated that the comparison can provide a
relative picture of the company's financial condition and performance.
Meanwhile, according to Syamsudin (2009) there are two ways that can be done in
comparing the company's financial ratios, namely with Time Series Analysis and Cross
Sectional Approach (CSA). CSA comparison can be done by comparing the company's
financial ratios with the industry average ratio. This is in line with the opinion of Sawir (2010);
Munawir (2010); Riyanto (2011); Harahap (2013); Kasmir (2016); Brigham & Daves (2019);
Suharmadi (2019), Darmawan (2020); and Lubis (2020). According to Munawir (2010) the
industry average ratio is the industry average ratio produced by several similar companies. For
the calculation of the industry average ratio, the arithmetic average calculation method is used
(Suharmadi, 2019).

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RESEARCH METHOD
This study applies an overview of financial ratios by applying a paired sample t-test to
show differences in the financial performance of 18 companies in the property and real estate
industry sectors before the Covid-19 pandemic (2019) and during the Covid-19 pandemic
(2020). The data used is secondary data collected from the annual financial statements of 16
companies in 2019 and 2020. The analytical method used is comparative analysis with the
Cross Sectional Approach, which compares the company’s financial ratios with the average
ratio of similar industries, in this case is the industry average ratio of the property and real
estate sectors. To calculate the industry average ratio, a single value in each ratio is used as a
comparison by calculating the arithmetic average of the 16 issuers that are the object of research
(Suharmadi, 2019).
The population in this study is 78 companies in the property and real estate industry,
using the Slovin formula and adjustments to the criteria for companies that have been listed
before 2019 and still exist in 2020 as well as annual financial reports that can be accessed by
the public, then narrowed down to 16 sample. The sample was selected based on the order of
the largest capitalization values in the property and real estate sectors. The research sample as
many as 18 issuers has a total capitalization of 69.03% of the total property and real estate
industry sector that is on the Indonesian Stock Exchange. The list of the 18 issuers or companies
is as follows:
Table 1. Sample List of Issuers
Share to total
Capitalization
No Issuers Name of Company property and real
(Rp. billion)
estate industry
1 MKPI Metropolitan Kentjana Tbk 23.894 9,58%
2 PWON Pakuwon Jati Tbk 22.442 9,00%
3 BSDE PT Bumi Serpong Damai Tbk 21.488 8,62%
4 CTRA Ciputra Development Tbk 18.003 7,22%
5 LPKR Lippo Karawaci Tbk 13.257 5,32%
6 SMRA PT Summarecon Agung Tbk 12.334 4,95%
7 DMAS PT Puradelta Lestari Tbk. 10.410 4,17%
8 PLIN Plaza Indonesia Realty Tbk 8.697 3,49%
9 DUTI Duta Pertiwi Tbk 6.660 2,67%
10 PPRO PT PP Properti Tbk. 5.304 2,13%
11 BKSL Sentul City Tbk 4.360 1,75%
12 RISE PT Jaya Sukses Makmur Sentosa 4.278 1,72%
Tbk.
13 KIJA PT Jababeka Tbk. 4.019 1,61%
14 ASRI Alam Sutera Realty Tbk. 3.753 1,50%
15 APLN Agung Podomoro Land Tbk. 3.518 1,41%
16 NIRO Nirvana Development Tbk 3.307 1,33%
17 MLTA Metropolitan Land 3.215 1.29%
18 LPCK PT Lippo Cikarang Tbk 3.161 1.27%
Total 172.100 69,03%
Source: processed data, 2021
Note: share capitalization value is taken based on the valuation until 15 June 2021 at
https://lembarsaham.com/

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Research Concept Framework
According to previous theory and research, the financial ratios used to test differences in
performance before and during the Covid-19 pandemic are profitability ratios, liquidity ratios,
solvency ratios, activity ratios, and valuation ratios.
Figure 1. Research Concept Framework

Source: Author illustration, 2021

Hypothesis
Based on the theory and previous research as well as the conceptual framework built, the
following hypotheses can be formulated:
H1 : It is suspected that there is a significant difference in the Net Profit Margin in the
financial statements before and during the Covid-19 pandemic.
H2 : It is suspected that there are significant differences in ROA in financial statements
before and during the Covid-19 pandemic.
H3 : It is suspected that there is a significant difference in ROE in the financial
statements before and during the Covid-19 pandemic.
H4 : It is suspected that there is a significant difference in the current ratio in the
financial statements before and during the Covid-19 pandemic.
H5 : It is suspected that there is a significant difference in the quick ratio in the financial
statements before and during the Covid-19 pandemic.
H6 : It is suspected that there are significant differences in the Debt to Total Assets
Ratio (DAR) in the financial statements before and during the Covid-19 pandemic.
H7 : It is suspected that there are significant differences in the Debt to Equity Ratio
(DER) in the financial statements before and during the Covid-19 pandemic.
H8 : It is suspected that there is a significant difference in the Total Asset Turnover
(TAT) ratio in the financial statements before and during the Covid-19 pandemic.
H9 : It is suspected that there are significant differences in the Working Capital
Turnover Ratio (WCT) in the financial statements before and during the Covid-19
pandemic.
H10 : It is suspected that there are significant differences in the Inventory Turnover Ratio
in the financial statements before and during the Covid-19 pandemic.
H11 : It is suspected that there is a significant difference in the ratio of the Price to
Earnings Ratio (PER) in the financial statements before and during the Covid-19
pandemic.

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 H12 : It is suspected that there is a significant difference in the ratio of Earnings per Share
(EPS) in the financial statements before and during the Covid-19 pandemic.

Variable Operational Definition

a. Profitability or profit ratio

Profitability ratio is a ratio that shows the company’s ability to benefit from the use of its
capital. In this study, ROA, ROE, and Net Profit Margin are used to measure profitability.
1. Return On Asset (ROA)
This ratio shows how efficiently a company uses its assets to generate profits or net
income.The ROA formula is:

( )=

2. Return On Equity (ROE)

This ratio informs investors about how well the company can make a profit using the
money they have invested. The ROE formula is:

( )=
ℎ ℎ

3. Net Profit Margin (NPM)

Net Profit Margin is a profit measurement that compares profit after interest and tax to
sales. The Net Profit Margin formula is:

b. Liquidity Ratio
Liquidity Ratio is a popular measurement for determining a company’s liquidity and short-
term debt capability. The Current Ratio and Quick Ratio are used to calculate the Liquidity
Ratio in this study.

1. Current Ratio
The current ratio compares current assets to current liabilities. The current ratio formula
is:

2. Quick Ratio
The quick ratio is calculated by subtracting current assets from current inventory and
dividing the result by the short-term liabilities. The formula is:

−
=

6
c. Solvency Ratio
The Solvency Ratio shows its financial obligations if the company is liquidated, both short-
term and long-term financial liabilities. The indicators are:

1. Debt to Asset Ratio (DAR)

It is a debt ratio used to measure the ratio between total debt and total assets.

2. Debt to Equity Ratio(DER)

This is the ratio used to value debt to equity. This ratio is measured by comparing all
debt, including current debt with all equity.

d. Activity or Efficiency ratio

This ratio is to analyze how well the condition of a company in using assets and liabilities
to generate income. The indicators used are:
1. Working Capital Turnover Ratio (WCT), this ratio shows how much the company
generates revenue and uses available cash for operations within a year. The Working
Capital Turnover Ratio formula is:

= −

2. Asset Turnover Ratio (TAT), this ratio determines sales revenue using their own assets.
The Asset Turnover Ratio formula is:

3. Inventory Turnover Ratio, this ratio measures how fast a company sells inventory.
Inventory Turnover Ratio is formulated as:

e. Valuation Ratio
Valuation ratio is usually used to analyze the attractiveness of an investment in a company.
The indicators used are:

1. Earning per Share (EPS) ratio shows how much money a company makes per share of
its stock and is usually used to measure the value of a company. The formulation of
Earning per Share Ratio (EPS) is:

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 −
ℎ ( ) =
ℎ

2. Price to Earning Ratio (PER), this ratio calculates the value of the stock price of a
company with its EPS. The formulation of Price to Earning Ratio (PER) is:

ℎ
( / ) =
ℎ

RESULT AND DISCUSSION

Paired Sample T-test

According to Santoso (2014), the reference in making decisions on the paired sample
T-test is based on the significance value (Sig.) of the SPSS output results, where the criteria
are as follows:
1. If the value of Sig. (2-tailed) < 0.05 Then Ha is accepted, H0 is rejected.
2. If the value of Sig. (2-tailed) > 0.05 Then H0 is accepted, Ha is rejected.

Table 2. Test Results in paired sample T-test

Mean Paired Sample Test
NO Indicator Before During
Sig. Decision
Pandemic Pandemic
1 NPM 0,182 -0,88 0,018 Sig. < 0,05. Ha accepted, H0 rejected
2 ROA 0,038 0,172 0,028 Sig. < 0,05. Ha accepted, H0 rejected
3 ROE 0,066 0,029 0,017 Sig. < 0,05. Ha accepted, H0 rejected
4 Curent Ratio 0,986 0,777 0,029 Sig. < 0,05. Ha accepted, H0 rejected
5 Quick Ratio 0,249 -0,148 0,002 Sig. < 0,05. Ha accepted, H0 rejected
6 DAR 0,363 0,411 0,003 Sig. < 0,05. Ha accepted, H0 rejected
7 DER -0,193 -0,092 0,002 Sig. < 0,05. Ha accepted, H0 rejected
8 TAT 0,168 0,141 0,015 Sig. < 0,05. Ha accepted, H0 rejected
9 WCT 0,943 0,879 0,011 Sig. < 0,05. Ha accepted, H0 rejected
10 Inventory 0,848 0,766 0,001 Sig. < 0,05. Ha accepted, H0 rejected
11 PER 3,21 3,63 0,002 Sig. < 0,05. Ha accepted, H0 rejected
12 EPS 4,09 4,44 0,006 Sig. < 0,05. Ha accepted, H0 rejected
Source: processed data, 2021
Based on the Paired Sample T-Test results, the value of Sig. in the tested indicators is
0.05, indicating that the Ha hypothesis is accepted and H0 is rejected, implying that there is an
average change before and during the Covid-19 pandemic. Overall, there are significant
differences in financial ratio indicators before and during the Covid-19 pandemic. The results
of hypothesis testing with a more concise Paired T-test can be seen in table 3.

8
 Table 3. Result of Hypothesis Test
Hypothesis Result
Profitability
H1 There are significant differences before and during the
Covid-19 pandemic in the Net Profit Margin (NPM) in Supported
the financial statements.
H2 There are significant differences before and during the
Supported
Covid-19 pandemic in ROA in the financial statements.
H3 There are significant differences before and during the
Supported
Covid-19 pandemic in ROE in the financial statements.
Liquidity
H4 There are significant differences before and during the
Covid-19 pandemic in the current ratio in the financial Supported
statements.
H5 There are significant differences before and during the
Covid-19 pandemic in the quick ratio in the financial Supported
statements.
Solvency
H6 There are significant differences before and during the
Covid-19 pandemic in the Debt to Total Assets Ratio Supported
(DAR) in the financial statements.
H7 There are significant differences before and during the
Covid-19 pandemic in the Debt to Equity Ratio (DER) in
the financial statements. Supported

Activity
H8 There are significant differences before and during the
Covid-19 pandemic in the Total Asset Turnover Ratio Supported
(TAT) in the financial statements.
H9 There are significant differences before and during the
Covid-19 pandemic in the Working Capital Turnover Supported
Ratio (WCT) in the financial statements.
H10 There are significant differences before and during the
Covid-19 pandemic in the Inventory Turnover Ratio in Supported
the financial statements.
Valuation
H11 There are significant differences before and during the
Covid-19 pandemic in the Price to Earning Ratio (PER) Supported
in the financial statements.
H12 There are significant differences before and during the
Covid-19 pandemic in the Earnings per Share (EPS) ratio Supported
in the financial statements.
Source: Processed Data, 2021
Overall, the hypothesis tests show that there are significant differences before and
during the Covid-19 pandemic on the Altman Z-score and financial ratio indicators.

9
 Table 4. Financial Health Assessment Standards
AVERAGE
VARIABLE INDICATOR INDUSTRY CATEGORY
2019 2020
ROA (%) 1,17 -2,18 healthy/good if ROA ≥ Average Industry
Profitability ROE (%) 1,98 -3,37 healthy/good if ROE ≥ Average Industry
NPM (%) 6,19 -8,15 healthy/good if NPM ≥ Average Industry
healthy/good if CR = Average Industry
Curent Ratio (CR)
3,15 2,45 and 1 ≤ CR ≤ 3
Liquidity
healthy/good if QR = Average Industry
Quick Ratio (QR)
1,66 1,24 and 1 ≤ QR ≤ 3
DAR 0,36 0,39 healthy/good if DAR ≤ Average Industry
Solvency
DER 0,74 0,85 healthy/good if DER ≤ Average Industry
TAT (times) 0,17 0,14 healthy/good if TAT ≥ Average Industry

Activity WCT (times) -1,41 0,51 healthy/good if WCT ≥ Average Industry

Inventory Turnover
0,82 0,76 healthy/good if IT ≥ Average Industry
(IT)(times)
PER 35,93 7,61 healthy/good if PER ≥ Average Industry
Valuation
EPS 113,19 -56,01 healthy/good if EPS ≥ Average Industry
Source: processed data, 2021
Note: For CR and QR, apart from being based on industry averages, minimum and maximum limits are
also applied with reference to Daryanto et.al (2020a), Permana (2020), Muttaqin (2020).

Profitability Ratio
In general, the ROA value on the industry average in 2020 has decreased compared to
2019 and this can be seen from the industry average value of -2,18% in 2020 while in 2019 it
was 1,17%. In 2020 the highest decline in ROA occurred in LPKR and LPCK. This was caused
by losses that reached around Rp. 8.89 Trillion on LPKR and losses were also experienced by
LPCK. The impact of the Covid-19 pandemic has reduced the ROA of companies in the
property and real estate industry except for DMAS. It happens due to stable income supported
by sales of industrial land (marketing sales), which increased in 2020, despite a decrease in
total assets.
ROA 2019 (%)
20,00 17,53

15,00 12,42
8,45 9,36
10,00
5,74
4,66 4,63
5,00 3,20 2,51 3,14
1,52
0,40 0,28 1,16 0,41 0,08
-0,51 1,17
0,00

-5,00
-3,74

ROA (%) AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 2. ROA in 2019

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 ROA 2020 (%)
30,00
19,97
20,00
10,00 3,03 4,23 0,80 3,36 4,64
0,99 0,57 0,37 0,59 1,49 0,05 -2,18
0,00
-10,00 -4,89 -3,03-1,66 -4,88
-20,00
-18,30
-30,00
-40,00
-37,52
-50,00

ROA (%) AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 3. ROA in 2020

. The Covid-19 pandemic has resulted in a decline in the industry’s average ROE in 2020.
In 2020, the industry’s average ROE value was -3,378% while in 2019 it was still at 1,98%.
The steepest decline occurred in LPKR due to company losses, while DMAS experienced an
increase in ROE due to their stable income. In addition to DMAS, the company’s ROE that is
still above average include MKPI, PWON, BSDE, CTRA, SMRA, DUTI, PPRO, KIJA,
APLN, NIRO, and MLTA. The ROE of the companies mentioned above indicate that the
company’s ROE is in the healthy or good category.

ROE 2019 (%)

25,00
20,56
20,00 17,90

15,00 12,18
11,17
9,31 9,59
10,00 6,52 6,49
5,05 6,06
5,00 3,53
2,24
0,64 0,36 0,94 0,13 1,98
0,00
-0,66
-5,00

-10,00

-15,00 -11,61

ROE (%) AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 4. ROE in2019

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 ROE 2020
30,00 24,40
20,00
7,57
10,00 4,12 6,36 1,41 2,71
6,18
2,34 1,59 2,39 0,07
0,72
0,00
-3,37 -3,37
-10,00 -2,13
-5,43 -5,43
-20,00 -11,04

-30,00
-40,00
-50,00 -40,25

-60,00 -55,42
ROE (%) AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 5. ROE in 2020

Meanwhile, NPM is the final profitability ratio indicator. The industry’s average NMP
decreased in 2020 compared to 2019, where it was -8,15 percent in 2020 and 6,20 percent in
2019. This indicates a drop in net income for property and real estate companies. BKSL
experienced the greatest decline in NPM due to losses in 2020, followed by LPKR, ASRI,
PLIN, and RISE. In the meantime, NPM increased at DMAS, CTRA, and NIRO. Furthermore,
MKPI, PWON, BSDE, SMRA, DUTI, PPRO, KIJA, APLN, MLTA, and LPCK are in the
healthy or good NPM category because their NPM values are higher than the industry average.
This indicates that these companies are still able to generate profits even under pressure from
slowing sales due to the impact of the Covid-19 pandemic.

NPM 2019 (%)

60,00 50,39 52,44
44,98 44,18
40,00 32,82
29,14

15,22 16,88 6,20

20,00
10,32
7,24 6,26
2,60 3,19 0,35 0,23
0,00

-8,25
-20,00
-16,93

-40,00
-39,55

-60,00

NPM (%) AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 6. NPM in 2019

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 80,00 NPM 2020
60,00 51,68
37,01
40,00 28,14 29,81
18,95 16,37
20,00 7,87 4,89 5,13 1,89 3,63 0,25
0,00
-2,02
-20,00 -8,15

-40,00 -25,72

-60,00
-62,34
-80,00 -73,35
-80,34
-100,00

-120,00
-123,12
-140,00 NPM (%) AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 7. NPM In 2020

Liquidity Ratio
The current ratio on the industry average in 2020 is 2.45 and lower than 2019 which
reached 3,15. However, according to Daryanto et.al (2020a); Permana (2020) and Muttaqin
(2020), the industry average current ratio value in 2020 is healthier than 2019. The unhealthy
current ratio in 2020 occurred in MKPI, LPKR, DUTI, RISE KIJA, ASRI, and LPCK. MKPI
and ASRI indicated experiencing difficulties in current liabilities. Meanwhile, high current
ratios in LPKR, LPCK, DMAS, DUTI, RISE, and KIJA indicate a decrease in current assets
and an increase in current liabilities.

Current Ratio 2019

7 6,62
6,12
6 5,41 5,37
5
3,93 3,71 3,83 3,96
4
2,86 2,67
3 2,17 3,15
1,64 1,55 1,43 1,66
2 1,21 1,24 1,31
1
0

Curent Ratio AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 8. Current Ratio (CR) in 2019
13
 Current Ratio 2020
7
6,18
6

4 3,48
3,13 3,21 3,20 3,13
2,95
3 2,63
2,37
1,98 2,11 2,45
1,78 1,70 1,90
2 1,42 1,40
0,94
1 0,67

Curent Ratio AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 9. Current Ratio (CR) in 2020
The industry average quick ratio in 2020 was 1.24, which was lower than the 1.66
recorded in 2019. Referring to Daryanto et.al (2020a), Permana (2020), and Muttaqin (2020),
this achievement is still considered healthy. In 2020, an unhealthy Quick ratio occurred in
MKPI, PWON, CTRA, LPKR, SMRA, PPRO, BKSL, RISE, APLN, MLTA, and LPCK. This
indicates that the company is experiencing problems in fulfilling its current liabilities using
current assets. Meanwhile, KIJA is also in the unhealthy category, and the cause is the non-
optimal management of current assets and capital.

Quick Ratio 2019

6
5,12 5,29
5

3
2,28 2,23
1,81 1,7 1,62 1,66
2 1,41
1,2 1,11 0,91 1,28
0,9 0,96
0,72
1
0,29 0,44 0,65

Quick Ratio AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 10. Quick Ratio (QR) in 2019

14
 Quick Ratio 2020
7

5,80
6

4
2,93
3
2,07
2 1,48 1,65
1,42
0,93 0,94 1,24
1 0,72 0,61 0,70 0,57 0,48
0,32 0,47 0,43 0,37 0,36

Quick Ratio AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 11. Quick Ratio (QR) in 2020

Solvency Ratio
The DAR value in the industry average in 2020 increased slightly compared to 2019,
from 0.36 to 0.39 in 2020. This shows that the average asset financed by debt is 39%. In 2020,
Companies that are categorized as unhealthy due to increased liabilities are PPRO, SMRA,
APLN, ASRI, CTRA, LPKR, KIJA, and BSDE.

DAR 2019
0,8 0,75
0,7 0,61
0,6 0,56
0,51 0,52
0,48
0,5
0,38 0,38 0,38 0,37
0,4 0,31 0,36
0,3 0,24 0,23 0,22
0,20 0,18
0,2 0,15
0,08
0,1
0

DAR AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 12 DAR in 2019

15
 DAR 2020
0,8 0,76

0,7 0,64 0,63

0,6 0,56 0,55 0,56
0,49
0,5 0,43
0,38 0,39
0,4 0,33 0,31 0,32
0,3 0,26 0,25 0,22
0,18
0,2
0,1
0,1 0,04
0

DAR AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 13. DAR in 2020

The industry average DER value in 2020 improved, with the DER value in 2020 was
0.85, lower than 0.74 in 2019, which was indicating that the ability to pay long-term obligations
is improving (Darmawan, 2020). However, several companies are classified as unhealthy or
high risk, including PPRO, SMRA, APLN, SMRA, ASRI, CTRA, LPKR, and KIJA. The
increase in non-current liabilities of these companies boosted the DER value.

DER 2019
3,5
2,98
3
2,5
2
1,59
1,5 1,30
1,03 1,07
0,93
1 0,62
0,6 0,6 0,59
0,74
0,5 0,32 0,44 0,30 0,25 0,28
0,17 0,08 0,12
0

DER AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 14. DER in 2019

16
 DER 2020
3,5
3,09
3

2,5

2 1,74 1,68
1,5 1,24 1,2 1,26
0,95 0,85
1 0,76
0,5 0,61
0,46 0,48
0,5 0,35 0,22 0,11 0,33 0,29
0,08
0

DER AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 15. DER in 2020

Activity Ratio
When compared to 2019, the industry’s average TAT in 2020 tends to fall. In general,
the decline was caused by a decrease in sales as well as an increase in inventories. BKSL,
MKPI, NIRO, RISE, ASRI, PLIN, PPRO, and BSDE are examples of unhealthy companies.
Companies with the largest business segments in offices, malls, hotels, and apartments faced
significant pressure in 2020 as a result of the government’s policy for restricting mobility and
business activities.

Total Asset Turnover (TAT) 2019

0,4 0,35
0,35
0,3 0,28
0,25 0,25
0,25 0,22 0,23 0,17
0,19 0,19
0,2 0,16 0,15
0,15 0,13 0,13
0,11 0,10 0,11
0,1 0,07 0,06 0,06
0,05
0

TAT AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 16. TAT in 2019

17
 TAT 2020
0,4 0,37
0,35
0,3
0,25 0,21 0,22 0,2 0,20
0,17 0,18
0,2 0,16
0,15
0,15 0,13
0,11 0,11 0,14
0,1 0,08 0,07
0,06 0,05
0,04 0,03
0,05
0

TAT AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 17. TAT in 2020

The industry average WCT in 2020 (0.51) decreased compared to 2019 (1.41). In general,
the decline was due to a decrease in sales, and this is also an indication of inefficiency in asset
management. Companies that fall into the healthy category include MKPI, PWON, SMRA,
CTRA, PLIN, APLN, and LPCK. Companies that are able to keep the decline in sales from
becoming too deep and more efficient in managing working capital will remain in the healthy
category.

Working Capital Turnover (WCT) 2019

10
4,54
5 1,1 1,24 0,43 0,85 0,44 2,2 0,85 0,54 0,45 0,66 0,33 0,32 2,08
0,18 0,32
0 -1,41
-5
-2,72
-10
-15
-20
-25
-30
-35
-40
-39,17
-45

WCT AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 18. WCT in 2019

18
 WCT 2020
6
4,32
4
1,78 1,56
2 0,76 0,36 0,86 0,45 0,96 1,13 1,06
0,38 0,48 0,33 0,20 0,34 0,28 0,36
0,51
0

-2

-4

-6
-6,35
-8

WCT AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 19. WCT in 2020

Furthermore, the industry average inventory turnover ratio in 2020 (0.76) appears to have
decreased compared to 2019 (0.82). This was due to a slowdown in sales which led in an
increase in inventory. In 2020, companies with an inventory turnover ratio in the healthy
category are NIRO, MKPI, ASRI, KIJA, and APLN. The steps taken to maintain the health of
the inventory are to reduce the COGS or selling costs. In addition, efficiency in marketing and
reducing operating costs are the keys to maintaining a healthy inventory turnover ratio.

Invetory Turnover 2019

6,00 5,54

5,00

4,00
3,16
3,00

2,00
1,05 1,03
0,88
1,00 0,59
0,37 0,29 0,38 0,48 0,34 0,22 0,22 0,38 0,33 0,82
0,21
0,03
0,00

-0,27
-1,00

Inventory Turnover AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 20. Inventory Turnover in 2019

19
 Inventory Turnover 2020
7,00
6,04
6,00

5,00

4,00

3,00

2,00 1,43
0,95 1,16 0,90 0,76
1,00 0,51 0,48 0,42
0,18 0,34 0,28 0,31 0,15 0,21 0,16 0,17 0,03 0,01
0,00

Inventory Turnover AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 21. Inventory Turnover in 2020

Valuation
In 2020, the industry average PER decreased from 35.93 to around 7.61. The very high
PER values at MKPI in 2020 and RISE in 2019 indicate the company’s shares are overvalued.
Meanwhile, there was a sharp decline in RISE and KIJA in 2020 and APLN in 2019 indicating
the company’s shares were undervalued. In general, PER indicates how appealing a company
is to investors as an investment destination.

PER 2019
1000,0
889,7

800,0

600,0

400,0

200,0 35,93
94,4
25,0 10,1 8,5 16,8 28,2 10,7 20,4 8,4 16,0 51,1
4,6 9,12 4,6
0,0
-5,5
-200,0 -152,2

-400,0
-393,3
-600,0

PER AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 22. PER in 2019

20
 PER 2020
150,0 114,8

100,0 86,8
64,6 62,3 62,6
50,0 26,4
13,9 8,8 13,2 12,09
0,0 7,61
-1,7 -5,4 -4,6 -1,04
-50,0 -15,1
-30,5
-100,0
-92,6
-150,0

-200,0 -177,4
PER AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 23. PER in 2020

EPS, like PER, indicates a company’s attractiveness to investors as an investment

destination. The higher the EPS, the more appealing a company is to investors; in other words,
the higher the EPS, the healthier the company. A very high and unreasonable EPS, on the other
hand, can indicate that a company’s stock is overvalued, whereas a sharp decline indicates that
it is undervalued. The slowdown in sales and the decline in profits experienced by most
companies resulted in a drop in the industry’s average EPS in 2020, with EPS falling sharply
to only in the range of -56.01, far behind the 2019 achievement of 113.19.
EPS 2019
700 648,37
596,14
600

500

400

300
221,00
200 147 161,57
113,19
100 56,47 62 51,48 63,62
35,7 27,7
4,24 0,90 0,68 5,71
0
-0,45 -0,92
-100 -43,84

EPS AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 24. EPS in 2019

21
 EPS 2020
400 243,91 288,50
200
19,3114,12 71 12,4727,96 1,51 2,59 35,57 -56,01
0
-200 -9,35-2,39-2,31-52,30-6,17
-125,86 -162,67
-400
-600
-800
-1000
-1200
-1400
-1364
-1600

EPS AVERAGE INDUSTRI

Source: Processed Data, 2021

Figure 25. EPS in 2020

CONCLUSION
Based on the Paired T-test that has been carried out on financial ratio indicators, there
are significant differences that can be seen in the financial performance of the property and real
estate industries before and during the pandemic Covid-19. This is supported by the decline in
the performance of financial ratios which are measured and compared to the average financial
ratios of the property and real estate industry. The policy of changing contract liabilities,
uncertainty in economic conditions, weakening public purchasing power, and the Large-Scale
Social Restrictions (LSSR) policy had the impact of slowing sales, and this was the cause of
the decline in the financial performance of companies in the property and real estate industry.
The implications of the Covid-19 pandemic have led to a decline in profitability, solvency,
efficiency or activity, and valuation. The findings of this study can be used to establish a
benchmark for the financial health of the industry during a pandemic or recession. Furthermore,
the findings of this study can be used as a guide for managers in developing strategies and
plans for survival in the pandemic situation.

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