Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2022)

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Analysis of the Effect of Debt to Equity Ratio, Current Ratio, Total Asset Turnover, Net Profit Margin & Gross Profit Margin on Profit Growth

Authors
Heliani1, *, Elita Melani1, Siti Hasna Fadhilah1, Taofik M. Gumelar1
1Faculty Economic and humaniora, Nusa Putra University, Sukabumi, Indonesia
*Corresponding author. Email: heliani@nusaputra.ac.id
Corresponding Author
Heliani
Available Online 30 August 2023.
DOI
10.2991/978-94-6463-226-2_4How to use a DOI?
Keywords
current ratio; debt to equity ratio; gross profit margin; net profit margin; profit growth; total asset turnover
Abstract

This study aims to examine the financial ratios that affect profit growth in textile and garment sector companies listed on the Indonesia Stock Exchange (IDX) for the 2016–2020 period. In this study, the authors use 6 (six) variables, where the dependent variable is profit growth (Y), then the independent variables consist of Debt to Equity Ratio (X1), Current Ratio (X2), Total Asset Turnover (X3), Net Profit Margin (X4), and Gross Profit Margin (X5). The population taken from the BEI is 21 companies with a sample of 9 companies. This sample was taken using a purposive sampling technique by taking data from the 2016–2020 financial statements. The type of data used in this research is secondary data. The research method used is descriptive analysis, classical assumption test, multiple linear regression analysis, and hypothesis testing. Based on the results of the partial study, the variable that has a significant effect on profit growth is only the Gross Profit Margin (GPM) variable, and for the other 4 variables it has no significant effect on profit growth. But simultaneously, all independent variables can have a significant effect on profit growth.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
30 August 2023
ISBN
10.2991/978-94-6463-226-2_4
ISSN
2352-5428
DOI
10.2991/978-94-6463-226-2_4How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Heliani
AU  - Elita Melani
AU  - Siti Hasna Fadhilah
AU  - Taofik M. Gumelar
PY  - 2023
DA  - 2023/08/30
TI  - Analysis of the Effect of Debt to Equity Ratio, Current Ratio, Total Asset Turnover, Net Profit Margin & Gross Profit Margin on Profit Growth
BT  - Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2022)
PB  - Atlantis Press
SP  - 34
EP  - 47
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-226-2_4
DO  - 10.2991/978-94-6463-226-2_4
ID  - 2023
ER  -