International Journal of Advances in Social Sciences and Humanities 2 (1) February 2023, pp.36-42 Content lists available at SRN Intellectual Resources International Journal of Advances in Social Sciences and Humanities Journal homepage: https://journal.srnintellectual.com/index.php/ijassh e-ISSN: 2948-4723/ @ 2023 SRN Intellectual Resources https://doi.org/10.56225/ijassh.v2i1.152 Original Article Analysing the Financial Distress at PT. Telekomunikasi Indonesia Tbk: An Application of Springate Approach Elfina Okto Posmaida Damanik a, *, Djuli Sjafei Purba a and Tioner Purba a a Faculty of Economics, Universitas Simalungun, Siantar Sitalasari, 21142 Kota Pematang Siantar, Sumatera Utara, Indonesia; djulipurba@usi.ac.id (D.S.P); tionerpurba@usi.ac.id (T.P) * Correspondence: elfinadamanik@usi.ac.id (E.O.P.D) Citations: Damanik, E.O.P., Purba, D.S. & Purba, T. (2023). Analysing the Financial Distress at PT. Telekomunikasi Indonesia Tbk: An Application of Springate Approach. International Journal of Advances in Social Sciences and Humanities, 2(1), 36-42. Academic Editor: Mursyidin Zakaria. Received: 6 November 2022 Accepted: 22 January 2023 Published: 28 February 2023 Abstract: In global market, every company needs to specific, measurable, achievable, relevant, and time-bound (SMART) goals that a company sets to achieve its overall mission and vision. In finance, the company might include its goals related to revenue growth, profitability, cash flow, or return on investment. Thus, the present study aims to analyse the financial distress of the PT. Telekomunikasi Indonesia, Tbk using Springate approach. This study is designed using descriptive and comparative qualitative data analysis. The data retrieved from http//: www.idx.co.id. The result indicates that PT. Telekomunikasi Indonesia, Tbk is in the healthy category, on the basis of data from 2016 to 2019. Also, the data in 2020 shows PT. Telekomunikasi Indonesia, Tbk is in the category prone to bankruptcy. It indicates that S value obtained in 2016 was 1.6084, 2017 was 1.5698, 2018 was 1.3364 and 2019 was 1.1846, where all S is greater than 1.062. For 2020, S value is 1.0380 was obtained which was 0.862 < S < 1.062. Of these, several policies need to be taken to keep the company in good health, such as increase the profits, sales and reduce the amount of debt. Keywords: financial distress; Springate approach; financial statement analysis. Copyright: © 2023 by the authors. Submitted for possible open access publication under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). 1. Introduction The company was founded aiming to maximize the value of the company by maximizing profits and minimizing costs so that the company can continue its business in a sustainable period (Carroll & Shabana, 2010; Dyllick & Hockerts, 2002; Keay, 2008). The profit obtained from the company is used to assess the success of the management in running the business as well as a point of attention for investors for the capital invested in the company. To be able to survive in today's business world, companies must have good and healthy financial performance. One way to improve financial performance is where the company's management must always create ideas that can attract market interest (Barauskaite & Streimikiene, 2021; Kuratko et al., 2001; Low & Siesfeld, 1998). If the company is not able to attract market interest, then the company is not able to obtain maximum profit and will have a bad impact on the development of the company. If this continues to happen, it will cause various problems in the development of the company, one of which the company will experience financial difficulties called financial distress which will end in bankruptcy if the company's management does not immediately take effective and efficient decisions.