PENGARUH CURRENT RATIO, DEBT TO EQUITY RATIO, TOTAL ASSET TURNOVER DAN RETURN ON ASSET TERHADAP PERTUMBUHAN LABA

Abstract

This study aims to determine the effect of the following variables on profit growth for companies in the food and beverage sub-sector listed on the Indonesia Stock Exchange: return on assets, debt to equity ratio, current ratio, and total asset turnover for the 2020–2023 period. The information used in this study came from the financial reports. Purposive sampling is a technique that involves selecting samples based on predefined criteria, and it yielded 46 companies. The analysis method used in this study was a multiple linear regression analysis test, which was performed using the Statistical Package for the Social Science (SPSS) version 19 software. The results of the study show that total asset turnover and return on assets have a negative and significant impact on profit growth, whereas the debt to equity ratio has a positive and significant impact on profit growth. Growth in profits is unaffected by the current ratio.