The Effect of Financial Ratios and Company Size on Company Financial Performance

Main Article Content

Dwi Egalita Novia Maharani
Agustin Ekadjaja

Abstract

The goal of this study is to learn more about the effect of Total Asset Turnover, Current Ratio, Leverage, and Company Size on Company Financial Performance. This study uses a sample of 26 manufacturing companies in the consumer goods industry during 2017-2020 which can be seen on the IDX obtained using the purposive sampling method. The application used for data processing in this research is E-views 12. This test results that Total Asset Turnover and Company Size have a significant impact on the Financial Results of the Firm, Current Ratio has a negative and insignificant effect on the Firm Performance, and Leverage has a negative significant impact on the Firm Performance. From this research, high-quality management is needed to encourage companies to improve their performance to figure out how to compete with the best strategies and subsequently maintain the Company’s Financial Performance for the survival of the firm.

Article Details

Section
Articles

References

Alpi, M. F. Gunawan, A., ”Pengaruh Current Ratio dan Total Assets Turnover Terhadap Return On Assets Pada Perusahaan Plastik Dan Kemasan,” Jurnal Riset Akuntansi Aksioma, vol. 17, No. 2, pp. 1-36, Dec. 2018, DOI: 10.29303/aksioma.v17i2.43.

Lestari, P., ”Pengaruh Likuiditas, DER, Firm Size dan Asset Turnover Terhadap Kinerja Keuangan,” Jurnal Neraca, vol. 4 No.1, pp. 1-10, Jun. 2020, DOI: 10.31851/neraca.v4i1.3843.

Nazir, A. Azam, M. Khalid, M. U., ”Debt Financing and Firm Performance: Empirical Evidence From the Pakistan Stock Exchange,” Asian Journal of Accounting Research, vol. 6 No. 3, pp. 324-334, Mar. 2021, DOI: 10.1108/AJAR-03-2019-0019.

Gunde, Y. M. Murni, S. Rogi, M. H., ”Analisis Pengaruh Leverage Terhadap Profitabilitas Pada Perusahaan Manufaktur Sub Industri Food And Beverages Yang Terdaftar Di BEI (Periode 2012-2015),” Jurnal EMBA, vol. 5 No.3, pp. 4185-4194, Sept. 2017.

Nasib. Azzahra, A. S., ”Pengaruh Firm Size Dan Leverage Ratio Terhadap Kinerja Keuangan Pada Perusahaan Pertambangan,” JWEM STIE MIKROSKIL, vol. 9, Nomor 01, Apr. 2019.

Thaibah, dan Faisal.,”Pengaruh Kecukupan Modal, Ukuran Bank, Biaya Operasional dan Likuiditas Terhadap Kinerja Keuangan Perbankan yang Terdaftar Di Bursa Efek Indonesia”. Jurnal Ilmiah Mahasiswa Ekonomi Manajemen, vol. 5, pp. 294-309, Mei. 2020.

Brigham, E. F., and Houston, J. F., ”Fundamentals of Financial Management 14th Edition” Mason: South-Western Cengage Learning, 2014.

Fauziah, F., “Kesehatan Bank, Kebijakan Dividen, dan Nilai Perusahaan Teori dan Kajian Empiris”. Samarinda: RV Pustaka Horizon, 2017.

Agung, J. J., Satria, B. and Madi, R. A., ”Pengaruh Rasio Keuangan, Firm Size, dan Reputasi Auditor Terhadap Peringkat Obligasi Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Periode 2013-2016,” Jurnal Manajemen, Jul. 2017.

Jansen, A., “Firm Specific Determinants of Dutch Capital Structure: The Impact of the 2008 Financial Crisis,” Oct. 2014.

Widyastuti, M., ”Analysis Of Liquidity, Activity, Leverage, Financial Performance And Company Value In Food And Beverage Companies Listed On The Indonesia Stock Exchange,” SSRG International Journal of Economics and Management Studies, vol. 6, Issues 5, pp. 52-58, May. 2019.

Indriyani, I. Panjaitan, F. Yenfi., ”Analisis Pengaruh Current Ratio dan Total Asset Turnover Terhadap Return On Asset (Studi Kasus Pada PT Pelabuhan Indonesia II (Persero) Cabang Pangkalbalam),” Jurnal Ilmiah Akuntansi Bisnis & Keuangan (Jiabk), vol. 10, Nomor 2, Nov. 2017.

Yilmaz, I., ”Sustainability And Financial Performance Relationship: International Evidence,” World Journal of Entrepreneurship, Management, and Sustainable Development, vol. 17 No. 3, pp. 537-549. Jan. 2021, DOI: 10.1108/WJEMSD-10-2020-0133

Ekadjaja, A. Wijaya, A. Vernetta, ”Factors Affecting Firm Performance In Manufacturing Companies In Indonesia Stock Exchange,” Jurnal Akuntamsi, vol. XXV, No. 01, pp. 154-167, Jun. 2021, DOI: 10.24912/ja.v24i2.699