Abstract
Financial statements play a major role in a company which is used as decision making material and performance benchmarking. A successful company should have a good financial performance. The other way around, a company which does not have a good financial performance would impact on the company success. The study employs a ratio analysis called Du Pont System Analysis in which the analysis often applied to measure financial performance on company. Du Pont System Analysis is a combination of financial ratios from ratio activities and profitability in which the result shows interaction from assets profitability of the company. Object of the study is PT. Indosat Tbk in 2016 – 2018 as a Telecommunication company. There are 3 similiar companies used as a comparison to indicate PT Indosat Tbk position which are PT Telekomunikasi Indonesia Tbk, PT XL Axiata Tbk, and Smartfren Telecommunication Tbk. The study draws a conclusion that financial performance of PT Indosat Tbk is good compared to the other similiar companies but PT Telekomunikasi Indonesia has the best performance than the other.
Highlights
The world is in a globalization era nowadays, as well as the modern economy development
Financial statements play a major role in a company which is used as decision making material and performance benchmarking
Du Pont System Analysis is a combination of financial ratios from ratio activities and profitability in which the result shows interaction from assets profitability of the company
Summary
The researchers use the data of financial statements on the company website in 2016-2018 and it is used as object and sample of the study. The data comes from company which is in the list of IDX website on level stock and obligation of telecommunication sub sector. The study employs a telecommunication company which is in the list of BEI as a population by using random sampling technique. Indosat Tbk as the sample of the study whereas PT. Definition a ratio to measure Net Income After Taxes with equity (Kasmir, 2012;204). NPM x Perputaran Total a ratio to measure the Net Income After Taxes on Net Sales (Hery, 2012;235). Net Income after Taxes Net Sales Revenue a ratio to measure all the Assets reached in every Assets in rupiah. Sales x 1 kali Total Assets a ratio comparison between Total Assets and Total Equity. (Nurdhiana, 2012;147)
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