Analysing the Financial Distress at PT. Telekomunikasi Indonesia Tbk: An Application of Springate Approach

Elfina Okto Posmaida Damanik; Djuli Sjafei Purba; Tioner Purba

doi:10.56225/ijassh.v2i1.152

Authors

Elfina Okto Posmaida Damanik Faculty of Economics, Universitas Simalungun, Pematang Siantar, Sumatera Utara, Indonesia
Djuli Sjafei Purba Faculty of Economics, Universitas Simalungun, Pematang Siantar, Sumatera Utara, Indonesia
Tioner Purba Faculty of Economics, Universitas Simalungun, Pematang Siantar, Sumatera Utara, Indonesia

DOI:

https://doi.org/10.56225/ijassh.v2i1.152

Keywords:

financial distress, Springate approach, financial statement analysis

Abstract

In global market, every company needs to specific, measurable, achievable, relevant, and time-bound (SMART) goals that a company sets to achieve its overall mission and vision. In finance, the company might include its goals related to revenue growth, profitability, cash flow, or return on investment. Thus, the present study aims to analyse the financial distress of the PT. Telekomunikasi Indonesia, Tbk using Springate approach. This study is designed using descriptive and comparative qualitative data analysis. The data retrieved from http//: www.idx.co.id. The result indicates that PT. Telekomunikasi Indonesia, Tbk is in the healthy category, on the basis of data from 2016 to 2019. Also, the data in 2020 shows PT. Telekomunikasi Indonesia, Tbk is in the category prone to bankruptcy. It indicates that S value obtained in 2016 was 1.6084, 2017 was 1.5698, 2018 was 1.3364 and 2019 was 1.1846, where all S is greater than 1.062. For 2020, S value is 1.0380 was obtained which was 0.862 < S < 1.062. Of these, several policies need to be taken to keep the company in good health, such as increase the profits, sales and reduce the amount of debt.

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