PENGARUH LIKUIDITAS, UKURAN PERUSAHAAN, DAN STRUKTUR MODAL TERHADAP PROFITABILITAS

Abstract

This research aimed to examine the effect of liquidity, firm size, and capital structure on profitability. The research was quantitative. Moreover, the population was Food and Beverage companies listed on the Indonesia Stock Exchange (IDX) during 4 years of observation during 2018-2021. There were 22 companies as the samples. Furthermore, the data were taken from the Gallery of Investment of the Indonesia Stock Exchange. The data analysis technique used multiple linear regression analysis. Additionally, the result showed that: (a) liquidity had a positive effect on profitability as the fixed assets owned by the company were used for the short-term operational and fulfilled the financial needs in the short term; (b) firm size did not affect profitability as the firm size was not a determine f efficiency factor also the company’s ability to earn income. There were other factors such as work capital management; (c) capital structure did not affect profitability since it was affected by the purpose of debts used and also how the debts were being managed by the company.