ANALYSIS EFFECT OF FINANCIAL CONSTRAINTS ON THE FINANCIAL PERFORMANCE OF PT MNC SKY VISION TBK FOR THE PERIOD 2015-2024

Abstract

This study aims to analyze the effect of financial constraints on the financial performance of PT MNC Sky Vision Tbk (MSKY) for the period 2015-2024, amid the disruption of the media industry by Over-the-Top (OTT) services. This study uses a quantitative approach with a case study design, analyzing secondary data from published financial reports. Financial constraints are measured using the Debt to Equity Ratio (DER) and Current Ratio (CR) proxies, while financial performance is measured through Return on Assets (ROA) and Net Profit Margin (NPM). The results of the analysis show that financial constraints have a significant negative effect on financial performance. During the research period, MSKY succeeded in improving its capital structure by drastically reducing its DER from 373% to 44% and increasing its CR, indicating an easing of structural financial constraints. However, profitability performance (ROA and NPM) remained consistently negative and even deteriorated sharply at the end of the period due to a significant decline in revenue. It can be concluded that financial constraints have a significant effect on financial performance, and effective management through debt restructuring, cost control, and revenue enhancement are important for achieving long-term financial stability.