PENGARUH LIKUIDITAS, SOLVABILITAS, DAN PROFITABILITAS TERHADAP PERTUMBUHAN LABA PADA PERUSAHAAN SEKTOR LEMBAGA PEMBIAYAAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

Abstract

This research aimed to examine the effect of liquidity (current ratio), solvability (debt to equity ratio), and profitability (return on asset) on companies’ profit growth of the financing institution sector which were listed on Indonesia Stock Exchange (IDX) during 2016-2020. The population was 16 companies of the financing institution which were listed on IDX during 2016-2020. Moreover, the data collection technique used saturated sampling. In line with that, there were 9 companies as a research sample. Furthermore, the research was quantitative with secondary data; which in the form of companies’ financial statements. Additionally, the data analysis technique used multiple linear regression with SPSS 25. The research result concluded that liquidity (current ratio) had a positive and significant effect on companies’ profit growth of the financing institution sector. Likewise, solvability (debt to equity ratio) had a positive and significant effect on companies’ profit growth of the financing institution sector. In contrast, profitability (return on asset) had a positive but insignificant effect on companies’ profit growth of the financing institution sector.
Keywords: liquidity, solvability, profitability, profit growth