PENGARUH KINERJA KEUANGAN DAN UKURAN PERUSAHAAN TERHADAP PERTUMBUHAN LABA PERUSAHAAN FARMASI

Abstract

This research aimed to examine the effect of activity ratio, solvability ratio and firm size on profit growth. The variable of this research was proxy with total assets turnover (TATO), Debt to Equity Ratio (DER) and size. This research used quantitative with comparative causal. Furthermore, the sample of this research used a purposive sampling method, namely a sample selection with specific criteria it obtained 35 samples from 7 pharmacy companies listed on the Indonesia Stock Exchange in the periods of 2015-2019. Moreover, the data analysis technique of this research used multiple liniear regression analysis. The result of this research used activity ratio had a negative effect on the profit growth. It meant that the higher the level of ativity, the lower the profit growth. It showed that the increase in sales activity was unable to cover the increase in company cost. Solvability did not affect profit growth. It showed that the higher the solvability level i.e Debt to Equity Ratio (DER) company, did not affect the profit growth. Firm size had a negative effect on profit growth. It means that the higher the value of the company’s assets, the lower its profit growth. It also showed that profit increase caused by an increased activity was unable to cover the amount of operational burden and debt burden during the operational activity.
Keywords: activity ratio, solvability ratio, firm size, profit growth