Effect of Capital Structure on Profitability at PT. Indofood CBP Sukses Makmur Tbk on Indonesia Stock Exchange

Abstract

The purpose of this study was to determine the effect of capital structure on profitability at PT. Indofood CBP Sukses Makmur Tbk on the Indonesian stock exchange. The variable used in this research is structure capital (independent variable) consisting of DER and DAR as measured using ratio with units of percent and profitability as measured using the Net Profit Margin (NPM) ratio in percent units. Pop u lasi in this research is the entire financial statements of PT. Indofood CBP Sukses Makmur Tbk which is registered at exchange effect Indonesia (201 5 -202 2 ), whereas sample in study This that is report position financial per quarter and profit and loss per quarter from the year 201 5 -202 2 at PT. Indofood CBP Success Prosperous Tbk. Data collection using documentation techniques. The method in this study uses multiple linear analysis methods with a probability of 0.05 The regression results show that partially the structure Capital Debt To Equty Ratio (DER) has a significant effect on profitability with a significance level of 0.000 and variable Debt To Asset Ratio (DAR) has a significant effect on profitability. with a significance level of 0.001 . Simultaneously capital structure (DER, DAR, ) has a significant effect on profitability ( NPM ) with a significance level of 0.000 at PT. Indofood CBP Success Prosperous Tbk On the Stock Exchange Indonesia. From the two independent variables (DER, DAR) it can be concluded that what has the dominant influence on profitability (NPM) is the Debt To Equity Ratio (DER) variable with a significance level of 0.000