PENGARUH CURRENT RATIO, DEBT TO ASSET RATIO, DAN NET PROFIT MARGIN TERHADAP PERTUMBUHAN LABA

Abstract

Pharmeutical company is kind of company with its great asset in their operational activity. While, the company is expected to give benefits for the society. Therefore, this research aimed to examine the effect of Current Ratio, Debt to Asset Ratio, and Net Profit Margin on profit growth of pharmeutical companies which were listened on Indonesia Stock Exchange. The research was quantitative, with causal-comparative as the approach. Moreover, the data were secondary which in the form of financial statement from Indonesia Stock Exchange (IDX). Furthermore, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with, there were 6 pharmeutical companies which were listed on Indonesia stock exchange 2014-2018 as sample. In addition, the data analysis technique used multiple linier regression with SPSS 25. The research result concluded, partially, Current Ratio had negative ang significant effect on profit growth. On the other hand, Debt to Asset Ratio had positive but insignificant effect on profit growth. In contrast, net profi margin had positive and significant effect on profit growth.
keywords: current ratio, debt to asset ratio, net profit margin, profit growth