Analysis of the Influence of CR, DER, TATO and NPM on Profit Growth of Manufacturing Companies Listed on the IDX for the 2021-2024 Period

Abstract

This research was conducted with the aim of determining the influence of Current Ratio, Debt to Equity Ratio, Total Asset Turnover and Net Profit Margin on profit growth in manufacturing companies listed on the Indonesia Stock Exchange. This research uses quantitative methods with secondary data. In this study, the population was 228 manufacturing companies listed on the Indonesia Stock Exchange with a sample size of 174 using purposive sampling. The results of the research partially show that the Current Ratio and Debt to Equity Ratio do not have a significant effect on profit growth with a significance value of Current Ratio of 0.100 which is greater than 0.05 and Debt to Equity Ratio of 0.083. Meanwhile, total asset turnover and net profit margin have a significant effect on profit growth with a significance value of total asset turnover and net profit margin of 0.000, which is smaller than 0.05. For the R Square test, the value is 27.3%, which shows that profit growth can be influenced by the variables Current Ratio, Debt to Equity Ratio, Total Asset Turnover and Net Profit Margin, while the remaining 72.7% is explained by other variables not discussed in this research.