Despite the fact that the pharmaceutical industry plays a significant part in the healthcare sector, the financial challenges that it faces can make it difficult for it to remain sustainable. There was a decline in the financial performance of PT Kimia Farma Tbk, which was characterized
by increasing losses and dependence on debt. With the help of profitability, liquidity, solvency, and activity ratios, the purpose of this study is to conduct an analysis of the company's financial performance in the years 2022 and 2023. One of the methods that is utilized is a descriptive quantitative analysis that is based on the financial statements of the company. The findings indicated a negative profitability, with a declining return on assets and return on equity, low liquidity characterised by a Current Ratio and Cash Ratio that were below the standards of the industry, and increasing DAR and DER, which reflected a
high dependence on debt. These findings provide further evidence that asset optimization strategies and operational efficiency solutions are required. The influence of external
factors on the financial performance of the company can be investigated further through the use of additional studies