PENGARUH KINERJA KEUANGAN TERHADAP PERUBAHAN LABA PADA PERUSAHAAN FARMASI DI BEI

Abstract

A pharmaceutical company is a manufacturing company that focuses on the health sector. The company produces and distributes various medicines and health tools that people need. Therefore, this research aimed to find out the effect of financial performance (Current Ratio, Debt to Equity Ratio, Total Asset Turnover, and Return On Asset) on profit change at pharmaceutical companies. The research was associative-quantitative. Moreover, the data collection technique used purposive sampling. Furthermore, the population was 5 pharmaceutical companies listed on the Indonesia Stock Exchange (IDX) during 2017-2021. Additionally, the data analysis technique used multiple linear regression. The result concluded that Current Ratio had a positive but insignificant effect on profit change. However, the Debt to Equity Ratio had a negative and insignificant effect on profit change. On the other hand, Total Asset Turnover had a positive and significant effect on profit change. In contrast, Return On Asset had a negative and significant effect on profit change.