PENGARUH KINERJA KEUANGAN TERHADAP PERUBAHAN LABA PADA PERUSAHAAN KOSMETIK YANG TERDAFTAR DI BEI

Abstract

Companies are considered healthy as they can survive in a difficult economic condition. Besides, it can be seen from their ability in fulfilling financial obligations and stability in running their operational activities, keeping continuity of business from time to time and also having a change of positive profit. Therefore, this research aimed to find out the effect of financial performnance on profit change of cosmetics companies which were listed on Indonesia Stock Exchange during 2015-2020. Moreover, the data collection technique used saturated sampling. In line with that, there were 6 cosmetics companies as the sample. Furthermore, the data analysis technique used multiple linear regression with Statistical Product for Social Scieňce (SPSS). The research result concluded that Current Asset (CA) had a positive but insignificant effect on profit change. Meanwhile, Debt to Equity Ratio (DER) had a negative and insignificant effect on profit change, On the other hand, Total Asset Turnover (TATO) had a negative and significant effect on profit change. In contrast, Return On Equity (ROE) had a positive and significant effect on profit change of cosmetics companies.
keywords: CA, DER, TATO, ROE, profit change