INFLUENCE OF LIQUIDITY, SOLVENCY, PROFITABILITY, ACTIVITY ON PROFIT GROWTH IN MANUFACTURING COMPANIES IN THE CONSUMER GOODS INDUSTRY SECTOR REGISTERED ON THE INDONESIA STOCK EXCHANGE (IDX)
Keywords:
Liquidity, Solvency, Profitability, Activity, Profit GrowthAbstract
Profit growth is an indicator of whether a company is doing well or not. A financial ratio is a calculation of a ratio using annual financial statements that serves as a measurement tool for assessing a company’s financial position and performance. This study covers liquidity from a current ratio (CR) perspective, solvency from a debt to equity ratio (DER) perspective, profitability from a net profit margin (NPM) perspective, and total asset turnover (TATO) perspective of manufacturing companies in the consumer goods industry sector registered on the Indonesia Stock Exchange (IDX)
during the period the period 2018-2020. The sector used in this research have an important role for other industrial sectors because this sector contributes significantly to Indonesia’s economic growth. The industry sub-sectors in this study are the consumer electronics, food and beverage, cigarette, pharmaceutical, cosmetics and household goods. In this study, the survey method used was causally related to the quantitative approach, and the sampling method used was in the form of annual financial statements confirmed and published on www.idx.co.id. Based on the specified criteria, 10 samples were extracted from a population of 53 manufacturers in the consumer goods industry. Data analysis multiple linear regression analysis is used by this study using SPSS version 23 application tools. Hypothesis test analysis result using t-test (partial), the liquidity, profitability, and activity of the variables are said to be positive and have a significant impact on profit growth . Meanwhile, solvency variables have a significant negative impact.
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