FINANCIAL PERFORMANCE EVALUATION THROUGH LIQUIDITY, SOLVENCY, ACTIVITY, AND PROFITABILITY RATIOS: A CASE STUDY OF PT GIHON TELEKOMUNIKASI INDONESIA TBK (2017–2024)

Abstract

The purpose of this study is to analyze the financial performance of PT Gihon Telekomunikasi Indonesia Tbk from 2017 to 2024 using financial ratio analysis, including liquidity, solvency, activity, and profitability ratios. This study aims to evaluate whether the company is capable of fulfilling its short-term and long-term financial obligations, utilizing its assets efficiently, and generating sustainable profits. The study employs a quantitative descriptive method with secondary data obtained from the financial reports of the company.

The outcomes refer to the company's liquidity ratio (Current Ratio) as volatile and declining, which reflects limited short-term financial flexibility. The solvency ratio (Debt to Equity Ratio) surged hugely since 2022, reflecting higher leverage on debt finance. The activity ratio (Total Asset Turnover) was extremely low, reflecting poor asset utilization. In contrast, the profitability ratio (Gross Profit Margin) was relatively robust and stable, suggesting effective cost management.

Generally, the results indicate that PT Gihon Telekomunikasi Indonesia Tbk experienced moderate financial performance, characterized by good profitability but weakened liquidity and solvency. To achieve sustainable growth, the company must optimize asset management, reduce its reliance on debt, and improve working capital efficiency.