Financial Performance Analysis of Telecom Industry of Bhutan: A Study on Bhutan Telecom Limited (BTL)

Abstract

Telecommunication industries are the boosters of any economic growth. In Bhutan, Bhutan Telecom Limited (BTL) plays a significant role in providing quality network services. The study aims to assess the financial performance of the company from 2011 to 2021 and also identify the factors affecting its profitability. This study is based on hypothesis testing of the research design and tries to identify the best model to explain the performance of the company using regression analysis. The study considered the Return on Equity (ROE) as the dependent variable and Current Ratio (CR), Working capital to sales (WCS), Return on sales (ROS), and Debt-to-equity Ratio as independent variables. The test stated that DER, WCS, and ROS have a significant impact on the profitability. However, CR has no significant impact on the profitability. The finding portrays that the company’s profitability has increased continuously from 2019-2021, despite the interruptions from the COVID-19 pandemic.