THE EFFECT OF FINANCIAL RATIOS ON PROFIT GROWTH AMONG MANUFACTURING COMPANIES
Main Article Content
Abstract
The aims of this study is to determine the impact of Net Profit Margin, Debt-to-Equity Ratio, Total Asset Turnover, and Quick Ratio on profit growth in manufacturing companies listed on the Indonesia Stock Exchange for the 2017-2019 period. With predetermined criteria, 18 companies registered in the Indonesia Stock Exchange are obtained by using purposive sampling method. The analysis technique used is multiple linear regression analysis. This study found that Net Profit Margin, Debt-to-Equity Ratio, Total Asset Turnover, and Quick Ratio simultaneously affect profit growth. Partially, Profit growth is not affected by Net Profit Margin, Debt-to-Equity Ratio and Total Asset Turnover. Whereas Profit Growth is affected negatively by Quick Ratio.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
IJAEB by Graduate Program of Universitas Tarumanagara is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.. Permissions beyond the scope of this license may be available at https://journal.untar.ac.id/index.php/ijaeb
References
A. Syahida, S. Agustin, S. Pengaruh DER, NPM, Dan TATO Terhadap Pertumbuhan Laba Pada Perusahaan Property and Real Estate Yang Terdaftar Di BEI, in: Jurnal Ilmu dan Riset Manajemen, vol. 10 (3), 2021, pp 1-14.
R. B. Prakarsa, Effect of Financial Ratio Analysis on Profit Growth In The Future (In Mining Companies Registered On the Indonesia Stock Exchange for the 2013-2015 Period), in: E-Jurnal Apresiasi Ekonomi, vol. 7(1), 2019, pp. 90-94. DOI: https://doi.org/ 10.31846/jae.v7i1.190.
E. F. Brigham, J. F. Houston, Fundamentals of Financial Management (Concise Ed). Boston: Cengage Learning, 2015.
S. Estininghadi, Pengaruh Current Ratio (CR), Debt Equity Ratio (DER), Total Assets Turn Over (TATO) dan Net Profit Margin (NPM) terhadap Pertumbuhan Laba pada Perusahaan Property and Estate yang Terdaftar di Bursa Efek Indonesia Tahun 2017, in: Jurnal Riset Akuntansi dan Keuangan Dewantara, vol. 2(1), 2019, pp. 1-10, DOI: https:// doi.org/10.26533/jad.v2i1.355.
J. J. Weygandt, P. D. Kimmel, D. E. Kieso, Financial Accounting: IFRS Edition. Edisi Keempat. Hoboken: John Wiley & Sons, Inc. 2019.
Kasmir, Analisis Laporan Keuangan. Edisi ke-11. Jakarta: PT Raja Grafindo Persada. 2018.
E. Silalahi, Pengaruh Informasi Keuangan Dalam Memprediksi Pertumbuhan Laba (Studi Empiris: Perusahaan Manufaktur Di Bursa Efek Indonesia), in: Jurnal Riset Akuntansi dan Keuangan, vol. 4(2), 2018, pp. 195-212.
D. R. Rantika, A. Budiarti, Pengaruh Rasio Keuangan Terhadap Pertumbuhan Laba Pada Perusahaan Pertambangan Logam Di BEI, in: Jurnal Ilmu dan Riset Manajemen, vol 5(6), 2016, pp. 1-18.
Yusri, C. D. Hasrina, V. Windayati, Pengaruh Quick Ratio, Inventory Turnover dan Net Profit Margin Terhadap Pertumbuhan Laba (Studi Empiris pada Perusahaan Manufaktur Subsektor Makanan dan Minuman yang Terdaftar Di BEI Periode 2013-2018), in: Jurnal Humaniora, vol. 4(2), 2020, pp. 234-243.
E. Endri, A. K. Sari, Y. Budiasih, T. Yuliantini, K. Kasmir. Determinants of Profit Growth in Food and Beverage Companies in Indonesia, in: Journal of Asian Finance, Economics and Business, vol. 7(12), 2020, pp.739-748. https://doi.org/10.13106/jafeb. 2020.vol7.no12.739.
N. Handayani, S. Winarningsih, The Effect of Net Profit Margin and Return on Equity toward Profit Growth, in: Jurnal Akuntansi dan Keuangan, vol. 7(2), 2020, pp.198- 204. https://doi.org/10.31294/moneter.v7i2.8701.
Zulkifli, Pengaruh Current Ratio, Debt-to-Equity Ratio Dan Net Profit Margin Terhadap Earning Growth Pada Perusahaan Pertambangan Yang Tercatat Di Bursa Efek Indonesia, in: Jurnal Ekonomi, vol. 23(2), 2018, pp. 175-189.
E. S. Handiyanti, The Effect of Return on Assets, Current Ratio, Debt-to-Equity Ratio on Income Growth in Automotive Companies Registered in Indonesia Stock Exchange, in: Quantitative Economics and Management Studies, vol. 1(4), 2020, pp. 291-299. https://doi.org/10.35877/454RI.qems209.
W.N. Prastya, S. Agustin, Pengaruh CR, NPM, GPM, dan TATO terhadap Pertumbuhan Laba pada Perusahaan Farmasi, in: Jurnal Ilmu dan Riset Manajemen, vol.7(6), 2018, pp.1-22.