Analysis of Liquidity, Solvency, and Profitability Ratios to Measure Financial Performance of PT Tower Bersama Tbk for the Period 2017–2019

Abstract

This study analyzes the financial performance of PT Tower Bersama Tbk (TBIG) for the period 2017–2019 using financial ratio analysis, focusing on liquidity, solvency, and profitability aspects. Financial ratios are essential tools for evaluating a company’s financial health, operational efficiency, and long-term stability. The research adopts a quantitative descriptive method and uses secondary data obtained from the company’s published annual financial statements available on the Indonesia Stock Exchange (IDX) and the company’s official website. The analysis covers three main ratio categories: (1) Liquidity Ratios—Current Ratio and Quick Ratio, which measure the company’s ability to meet short-term obligations; (2) Solvency Ratios—Debt to Asset Ratio (DAR) and Debt to Equity Ratio (DER), which assess financial leverage and the company’s capacity to meet long-term liabilities; and (3) Profitability Ratios—Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE), which evaluate the company’s efficiency in generating profits from assets and equity. The results indicate that TBIG maintained a stable liquidity position throughout the study period, despite fluctuations in current assets and liabilities. The solvency analysis reveals that the company relied moderately on debt financing to support network expansion while maintaining leverage within industry standards. Furthermore, the profitability ratios showed positive trends, particularly in ROA and ROE, suggesting effective asset utilization and strong management performance in optimizing revenues and controlling costs. Overall, the study concludes that PT Tower Bersama Tbk demonstrated solid financial performance and operational efficiency during 2017–2019.Bottom of Form