Abstract

This research was conducted on telecommunications sub-sector companies listed on the Indonesia Stock Exchange. Despite the increasing economic value each year, it does not necessarily indicate good financial performance for a company. Therefore, a thorough calculation is needed to determine whether the financial performance of a company is good or not. The aim of this research is to assess the financial performance of telecommunications sub-sector companies listed on the Indonesia Stock Exchange using financial ratio analysis. The research employed a qualitative approach, collecting data by analyzing the reports of total debt, total assets, total equity, sales, and fixed assets for the period 2020 – 2022. The results of the study indicate that the activity ratios represented by the fixed assets turnover ratio and total assets turnover ratio for telecommunications sub-sector companies during the period 2020 – 2022 show unfavorable values. On the other hand, the solvency ratios represented by the debt to total assets ratio and debt to equity ratio for telecommunications sub-sector companies during the same period also exhibit unfavorable values.