PENGARUH RASIO LIKUIDITAS, SOLVABILITAS DAN AKTIVITAS TERHADAP PROFITABILITAS

Abstract

The research and to examine the effect of liquidity, solvency, and activity on profitability. The liquidity was measured by Current Ratio (CR), solvency was measured by Debt to Equity Ratio (DER), activity was measured by Total Asset Turnover, and profitability was measured by Return On Asset (ROA). The population was cement companies which were listed on Indonesia Stock Exchange (IDX) during 2015-2020. Moreover, the data were annual reports which were taken from the official website of the Indonesia Stock Exchange. Furthermore, the data collection technique used purposive sampling with two criteria given. In line with that, there were 6 companies as a sample. In total , there were 36 data samples. The research was correlational - quantitative. Additionally, the data analysis technique used multiple linear regression. The research result concluded that liquidity did not affect profitability. On the other hand, solvency affected profitability. Likewise , activity affected profitability. It meant, liquidity did not affect the increase of profitability. In contrast, solvency as well as activity affected the increase or decrease of profitability.