The Effect of Financial Ratios on Growth Profit in Manufacturing Industry Sector Companies Listed on the Indonesia Stock Exchange

Authors

  • Fernanda Fadhli Fakhruddin
  • Titiek Ambarwati Universitas Muhammadiyah Malang
  • Novita Ratna Satiti Universitas Muhammadiyah Malang

DOI:

https://doi.org/10.22219/jamanika.v1i4.19435

Keywords:

current ratio, debt asset ratio, total asset turnover, debt equity ratio

Abstract

This research aims to find out the effect of financial ratio to profit growth on manufacturing industry companies or processing industries listed on the Indonesia Stock Exchange in 2016-2019. Purposive sampling techniques were obtained by 13 companies. The analysis used in this study is multiple linear regression analysis. The results in this study found that the current ratio partially positively affects profit growth, quick ratio partially positively and significantly affects profit growth, debt asset ratio partially negatively affects and significant on profit growth, debt equity ratio partially positively affects profit growth, total asset turnover partially positively affects profit growth. Working capital turnover partially positively affects but does not significant to profit growth, profit margin partially positively affects profit growth, retutn on asset partially positively affects profit growth. All free variables simultaneously have a significant effect on profit growth

Downloads

Download data is not yet available.

References

Amar, S. S., & Nurfadila, D. (2017). Effect of Financial Ratio to Profit Growth on IX-Listed Manufacturing Companies. Journal of Accounting and Investment, 2(2), 17–31.

Brigham, Eugene, F., dan Michael, C., Enhardt. (2003). Financial Management Theory and Practice, 11th Edition, Thomson and SouthWestern.

Harahap, S. S. (2011). Critical Analysis of Financial Statements. Jakarta: First Edition. PT. King Grafindo Persada.

Hermanto. Suwardi B. (2007). Influence of Information Systems and Financial Ratio to Profit Changes. Thesis Department of Accounting. Medan: Faculty of Economics, University of North Sumatra.

Ima Andriyani. (2015). Effect of Financial Ratio to Profit Growth on Mining Companies Listed on The Indonesia Stock Exchange". Thesis, Sriwijaya Management and Business Journal Vol.13 No.3.

Jannah, Muftihatul and Dzulkirom Moch. (2019). Analysis of The Influence of Financial Ratios Twrhadap Corporate Profit Growth (Study on Consumer Goods Industry Companies Recorded in Bei Period 2013-2017). Journal of Business Administration. Volume 73. Number 2. (August): 36-46.

Cashmere. (2017). Analysis of Financial Statements. King Grafindo Persada. Jakarta.

Cashmere. (2015). Financial Statement Analysis. Jakarta: PT Raja Grafindo Persada

Kurniawan, A. H. (2017). Financial Ratio Analysis to Predict Profit Growth of Manufacturing Companies Listed on the Indonesia Stock Exchange. E-Journal Pancasetia College of Economics, 13(1), 63–72.

Meriewaty and Setyani. (2005). Analysis of Financial Ratio to Performance Changes in Companies in the Food and Beverages Industry Listed on the Jakarta Stock Exchange. Thesis. Jakarta: National Development University.

Novatiani, Ait R and Rosyani Muthya. (2014). The Effect of Financial Ratio to Future Profit Growth". Publication Manuscript of the Faculty of Economics, University of Widyatama–Bandung

Nurhadi. (2011). Effect of Asset Turnover on Profit Growth of Cigarette Industry Listed on Indonesia Stock Exchange. Socialite: Journal of Administrative Sciences 1(2):1-12.

Oktanto, D. and Nuryanto, M. (2014). Effect of Financial Ratio to Change in Profit on Manufacturing Companies Listed on the Indonesia Stock Exchange in 20082011. Journal of Accumulation & Business. 1(1):61-77.

Sam, F., Pahlevi, C., & Pakki, E. (2018). Factors Determining Profit Growth (Case Study of Companies Listed on Index LQ-45 of Indonesia Stock Exchange Period 2012-6). Hasanuddin Journal of Applied Business and Entrepreneurship, 1(4), 42–51.

Sari, Purnama Meylia and Idayati, Farida. (2019). The Effect of Financial Ratio to Profit Growth on Property and Real Estate Sector Companies on the Indonesia Stock Exchange. Journal of Accounting Science and Research. Volume 8. Number 5. (May): 01-20.

Sihura, Maria Majesty and Gaol, Rumasi Lumban. (2016). The Effect of Financial Ratio to Profit Growth in Automotive And Rantika Sector Manufacturing Companies, Dita Ridia.2016. Effect of Financial Ratio to Profit Growth in Metal Mining Companies on IDX. Volume 5. Number 6. (June): 2-18.

Simorangkir. (1993). Isolated communities in Indonesia, Problem 4 of the Indonesian Ethnographic Series. Issued in collaboration with the Ministry of Social Affairs and the Indonesian National Council for Social Welfare with the Issuer of PT. Gramedia Main Library.

Sutrisno. (2009). Financial Management (Theory, Concepts, and Applications). Yogyakarta: First Edition of Seventh Print of Ekonisia.

Suwarno Agus Endro. (2004). Benefits of Financial Information in Predicting Profit Changes at Manufacturing Companies Go Public on the Jakarta Stock Exchange. Journal of Accounting and Finance. Vol 3 No.2.

Tri Wahyuni, Ayem Sri, and Suyanto. (2017). Effect of Quick Ratio, Debt To Equity Ratio, Inventory Turnover and Net Profit Margin on Profit Growth in Manufacturing Companies Listed on The Indonesia Stock Exchange in 2011-2015. Accounting Dewantara. Volume 1. Number 2. (October): 117-126.

Weston, J. F., & Copeland, T. E. (1995). Financial Management. Ninth Edition of The First Volume. West Jakarta: Binarupa Aksara.

Downloads

Published

2021-12-31

Issue

Section

Articles

Most read articles by the same author(s)

1 2 > >>