PENGARUH RASIO KEUANGAN TERHADAP PERTUMBUHAN LABA PADA PERUSAHAAN FOOD AND BEVERAGES YANG TERDAFTAR DI BEI

Abstract

This research aimed to examine the effect of financial ratio on the profit growth of Food and Beverages companies, which were listed on Indonesia Stock, Exchange 2014-2018. While, financial ratio was measured by Current Ratio, Total Asset Turnover, Debt to Asset Ratio and Return On Asset. Moreover, the data collection technique used purposive sampling. In line with, there were 9 Food and Beverages companies as sample. Furthermore, the data analysis technique used multiple linear regression with SPSS20. The research result concluded current ratio had negative and insignificant effect on the profit growth. This meant, as the company had higher current ratio asset, it reflected how hogh the company’s supply. As consequence, it brought higher expense of maintenance of quality supply. Meanwhile, total asset turnover had negative and significant effect on thr profit growth. In other words, company was able to take advantage of total asset effectively since it affected the process of production and sales. In contract, Debt to Asset Ratio had negative and significant effect on the profit growth. It meant, the more company’s debt was, the less profit the company would have, On the other hand, Return On Asset had positive and significant effect on the profit growth. In other words, the company was able to make use all asset in earning the net profit.
Keywords:current ratio, total asset turnover, debt to asset ratio, return on asset, profit growth