Comparative Analysis of Capital Structure and Profitability During the COVID-19 Pandemic on Telecommunications Companies in Indonesian Stock Exchange
Novie Wulan Sari (a*), Mokhamad Anwar (b)

Magister of Management, Faculty of Economics and Business, Padjadjaran University, Bandung, Indonesia

Abstract

This study examines the comparative analysis of capital structure and profitability during the Covid-19 Pandemic. In knowing the extent of the benefits obtained by a company, it can be seen from the financial performance, especially in the capital structure as measured by the DER and DAR. The capital structure will have an effect to the profitability measured by the ROE, this is because the maximum use of debt will reduce interest payments because the company is required to pay higher interest. In the profitability calculation, we can find out the level of profit obtained from the company during the covid-19 pandemic. The purpose of this study is to find out the comparison between capital structure and profitability. Other than that, it is also to find out the extent of the influence of the capital structure on profitability. This study used a telecommunication company listed on the Indonesian Stock Exchange over the period of 2017-2021. The type of data used is secondary data. The results of this study show that the capital structure of PT Telkom Indonesia Tbk had an increased in liability, asset, equity and profitability during the pandemic situation. PT XL Axiata Tbk had an increased in liability, asset and equity, but has decreased profitability. PT Indosat Tbk had an increased in liability but it suffered a decrease in asset, equity and profitability.

Keywords: Capital Structure- Profitability- Debt to Equity Ratio (DER)- Debt to Asset Ratio (DAR)- Return on Equity (ROE)

Topic: Financial Management and Accounting