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PT Telkom Indonesia (Persero) Tbk (PT Telkom Indonesia (Persero) Tbk) Financial Strength : 7 (As of Mar. 2024)


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What is PT Telkom Indonesia (Persero) Tbk Financial Strength?

PT Telkom Indonesia (Persero) Tbk has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

PT Telkom Indonesia (Persero) Tbk's Interest Coverage for the quarter that ended in Mar. 2024 was 9.45. PT Telkom Indonesia (Persero) Tbk's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.41. As of today, PT Telkom Indonesia (Persero) Tbk's Altman Z-Score is 2.99.


Competitive Comparison of PT Telkom Indonesia (Persero) Tbk's Financial Strength

For the Telecom Services subindustry, PT Telkom Indonesia (Persero) Tbk's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


PT Telkom Indonesia (Persero) Tbk's Financial Strength Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, PT Telkom Indonesia (Persero) Tbk's Financial Strength distribution charts can be found below:

* The bar in red indicates where PT Telkom Indonesia (Persero) Tbk's Financial Strength falls into.



PT Telkom Indonesia (Persero) Tbk Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

PT Telkom Indonesia (Persero) Tbk's Interest Expense for the months ended in Mar. 2024 was $-78 Mil. Its Operating Income for the months ended in Mar. 2024 was $735 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $2,548 Mil.

PT Telkom Indonesia (Persero) Tbk's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*735.21/-77.776
=9.45

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

PT Telkom Indonesia (Persero) Tbk's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1428.646 + 2547.872) / 9711.728
=0.41

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

PT Telkom Indonesia (Persero) Tbk has a Z-score of 2.99, indicating it is in Grey Zones. This implies that PT Telkom Indonesia (Persero) Tbk is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.99 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


PT Telkom Indonesia (Persero) Tbk  (NYSE:TLK) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

PT Telkom Indonesia (Persero) Tbk has the Financial Strength Rank of 7.


PT Telkom Indonesia (Persero) Tbk Financial Strength Related Terms

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PT Telkom Indonesia (Persero) Tbk (PT Telkom Indonesia (Persero) Tbk) Business Description

Address
Jalan Japati No. 1, West Java, Bandung, IDN, 40133
PT Telkom Indonesia (Persero) Tbk is the largest integrated telecommunications provider in Indonesia. It is the principal provider of fixed-line services in Indonesia, and its 65%-owned subsidiary, Telkomsel, is the largest wireless carrier in the country, with about 48% market share. It also provides a wide range of other communication services, including telephone network, interconnection services, multimedia, data and internet communication-related services, satellite transponder leasing, leased line, intelligent network and related services, cable television, and VoIP services.

PT Telkom Indonesia (Persero) Tbk (PT Telkom Indonesia (Persero) Tbk) Headlines