Profitability Ratio Analysis to Measure Financial Performance at PT Telkom Indonesia (Persero) Tbk for the Period 2019–2024

Abstract

This study aims to analyze the profitability ratios of PT Telkom Indonesia (Persero) Tbk for the period 2019-2024 in order to assess the company's financial performance. The profitability ratios used include Gross Profit Margin (GPM), Net Profit Margin (NPM), Return on Assets (ROA), and Return on Equity (ROE). The research method employed is quantitative descriptive with secondary data sourced from the company's annual financial reports published on the Indonesia Stock Exchange (IDX). The results show that PT Telkom Indonesia's profitability performance experienced a fluctuating trend throughout the study period. GPM values remained relatively stable around 29-32%, still meeting the ideal standard of >30%. NPM showed a significant decline in 2022 at 27%, though it recovered in subsequent years. ROA and ROE demonstrated a consistent downward trend from 2020 to 2024, indicating a decline in asset and equity utilization efficiency in generating profits. Overall, despite a declining trend, PT Telkom Indonesia's profitability ratios are still above the standard ideal for most indicators, suggesting the company remains profitable and capable of maintaining financial stability in the telecommunications sector.