ABSTRACT 
The purpose from this research is to know financial performances of PT Kalbe Farma Tbk and PT Kimia Farma Tbk from 2011 until 2015. To analysis financial performances this companies are performed by measuring a company's financial ratios that consists of liquidity’s ratio, solvency, and profitability. One of benefits from this research is investors know how the risks would be obtained when investing in this companies. The author uses horizontal analysis method with time series technique, to finish this research is comparing financial statements between two companies over five years. For qualitative result by calculating and describing the results of calculating this ratio.

The result of this research is describe financial performance of PT Kalbe Farma Tbk over five years from 2011 until 2015 is quite good with a number of financial ratios near the provisions of the relevant ratios, increasing and decreasing the ratio of each year is relatively stable. Financial performance of PT Kimia Farma Tbk over five years from 2011 until 2015 is quite good and relatively stable, but the result of financial ratio is still below the ratio is generated by PT Kalbe Farma Tbk.

Based on the results of this research, the author has some recommendations that PT Kalbe Farma Tbk must develop factory of raw material in Indonesia quickly to reduce dependence on imports of raw materials caused the numbers of profit margin ratio decreased. PT Kimia Farma Tbk must be more to pressure on production costs and continue to increase sales in order to increase profits.

Keywords: Financial Performance, Financial Ratio Analysis.