Unveiling the Secret Ingredients: Boosting Profit Growth in Food and Beverage Manufacturing Companies on the Indonesia Stock Exchange

Yana Priyana

doi:10.58812/asemb.v1i1.5

Authors

Yana Priyana Sanskara Karya Internasional

DOI:

https://doi.org/10.58812/asemb.v1i1.5

Keywords:

Profit Growth, Manufacturing Companies, Indonesia Stock Exchange, Food and Beverage Sub-Sector, Current Ratio, Debt to Equity Ratio (DER)

Abstract

In this study, we aim to investigate the key factors influencing profit growth within the manufacturing companies listed on the Indonesia Stock Exchange. The primary focus of our research centers on profit growth as the dependent variable, with independent variables including the current ratio, debt-to-equity ratio (DER), and total asset turnover (TATO). Our analysis was conducted on a dataset comprising 26 manufacturing companies within the food and beverage sub-sector, which are listed on the Indonesia Stock Exchange. Among these, we selected a sample of five companies over the period spanning 2017 to 2019. Utilizing various statistical tests such as classical assumption testing, linear regression analysis, t-tests, F-tests, and coefficient of determination tests through SPSS, we found that only the debt-to-equity ratio (DER) demonstrated a significant influence on profit growth, as indicated by a significance level below 0.05. Conversely, the current ratio (CR) and total asset turnover (TATO) were found to have no significant impact on profit growth within these companies.

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