PENGARUH STRUKTUR MODAL DAN UKURAN PERUSAHAAN TERHADAP PROFITABILITAS PADA PERUSAHAAN RITEL DI BEI

Abstract

This research aimed to find out the effect of capital structure and firm size on profitability. The capital structure was measured by Debt to Assets Ratio (DAR) and Debt to Equity Ratio (DER), firm size was measured by Size, and profitability was measured by Return On Equity (ROE). While, the research was quantitative. The population was 29 retail companies which were listed on Indonesia Stock Exchange. Moreover, the data collection technique used purposive sampling, in which the sample was based on criteria given. In line with that, there were 6 retail companies which were listed on Indonesia Stock Exchange (IDX) during 2016-2020. Furthermor, the data were secondary in the form of companies financial statements. Additionally, the data analysis technique used multiple liniear regression with SPSS 20. In addition, a hypothesis test which used t-test concluded that capital structure which was measured by DAR and DER had a significant effect on profitability which was measured by ROE. Meanwhile, firm size which was measured by Size had an insignificant effect on profitability which was measured by ROE.