PENGARUH KINERJA KEUANGAN TERHADAP PERTUMBUHAN LABA

Abstract

The research examines the effect of financial performance which was measured by profitability ratio and referred to as Net Profit Margin, activity ratio was referred to as Total Asset Turnover, and leverage ratio was referred to as Debt to Equity Ratio on the profit growth. The research applies quantitatively. Furthermore, the data collection technique used purposive sampling. In line with that, there were 90 samples from 18 Food and Beverage companies listed on the Indonesia Stock Exchange (IDX) for 5 years (2019-2023). The data were taken from the Gallery of Indonesia Stock Exchange (GIBEI) STIESIA Surabaya. Moreover, the data analysis technique used multiple linear regression. The result shows that: (a) Net Profit Margin has a positive and significant effect on profit growth. It means that the company can generate optimal profits from sales Activities, (b) Total Asset Turnover has a positive and significant effect on profit growth, which means that the company can manage its total assets efficiently to generate income, and (c) Debt to Equity Ratio do not effect on profit growth. This indicates that increasing debt slightly boosts profitability, but has an insignficant and inconsistent effect.