FINANCIAL PERFORMANCE EVALUATION OF PT. INDOSAT, TBK USING THE APPROACH OF LIQUIDITY, SOLVENCY, ACTIVITY, AND PROFITABILITY RATIOS FOR THE PERIOD 2015-2024

Abstract

This research aims to analyze the financial performance of PT Indosat Tbk for the 2015–2024 period using a financial ratio approach that includes liquidity, solvency, activity, and profitability ratios. The research method used is a descriptive quantitative method with secondary data in the form of the company's annual financial reports obtained from the official website of the Indonesia Stock Exchange (IDX) and the annual report of PT Indosat Tbk. The results of the analysis show that the liquidity ratio based on the Quick Ratio is below the ideal standard of 1.0 with an average of 0.47, so the company's liquidity condition is classified as unhealthy. In terms of solvency, total debt has increased significantly while equity is relatively stagnant, which indicates an increasing level of leverage and financial risk. The activity ratio shows an increase in sales volume from year to year, but the faster growth in total assets requires an increase in asset utilization efficiency. Meanwhile, the profitability ratio as measured by Gross Profit Margin (GPM) experienced a positive trend with an average of 15.56% and a final value of 19.39%, indicating an increase in operational efficiency although it has not yet reached the industry standard of 20%. Overall, PT Indosat Tbk's financial performance during the study period was quite good, but it still faces pressures on liquidity and solvency. The company is advised to strengthen its capital structure and increase profitability to maintain sustainable financial performance in the future