PENGARUH RASIO KEUANGAN TERHADAP PERTUMBUHAN LABA

Abstract

This research aimed to determine the effect of financial ratios on the profit growth of manufacturing companies listed on IDX in 2017-up to 2021. The study was quantitative, which examined the impact of financial ratio that was measured by Current Ratio (CR), Debt to Asset Ratio (DAR), Net Profit Margin (NPM), and Return On Assets (ROA) on profit growth. The population was all manufacturing companies that were listed on IDX, consisting 170. Furthermore, the data collection technique used purposive sampling. In line with that, there were 63 samples. Additionally, the data analysis technique used multiple linear regression. The research result concluded that the Current Ratio, as well as Return On Assets, had a positive effect on profit growth. The higher the Current Ratio and Return On Assets were, the higher the companies’ profit growth in Indonesia would be and vice versa. In contrast, both Debt to Asset Ratio and Net Profit Margin did not affect the profit growth of manufacturing companies. This proved that every change in Debt to Asset Ratio and Net Profit Margin did not affect the profit growth of manufacturing companies.