PENGARUH LIKUIDITAS, SOLVABILITAS, DAN AKTIVITAS TERHADAP PERTUMBUHAN LABA

Abstract

This research aimed to examine the effect of financial ratio of working capital to total asset, current liabilities to
inventory, debt to equity ratio and total asset turnover on profit growth. While, the population was companies
which were listed on Indonesia Stock Exchange during 2014-2018. The research was quantitave. Moreover, the
data collection technique used purposive sampling, in which the sample was based on criteria given. In line with,
there were 61 observation of financial statements from 14 Food and Beverages companies. Furthermore, the data
analysis technique used multiple regression model with Statistical Package for the Social Science (SPSS) 23. The
research result concluded total asset turnover had positive effect on profit growth of Food and Beverages
companies. On the other hand, working capital to total asset did not affect profit growth of Food and Beverages
companies. Likewise, current liabilities to inventory did not affect profit growyh of Food and Beverages
companies. Similarly, debt to equity ratio did not affect profit growth of Food and Beverages companies.
Keywords: financial ratio, profit growth.