Effect of Current Ratio, Return on Assets and Debt to Equity Ratio on Profit Growth in Listed Banking Companies on the Indonesia Stock Exchange Year 2019-2021

Abstract

This study aims to determine and analyze the effect of Current Ratio, Return On Assets, and Debt to Equity Ratio To Profit Growth on Banking Companies Listed on the Indonesia Stock Exchange in 2019-2021. The population in this study was 43 registered banking companies on the Indonesia Stock Exchange for the 2019-2021 period using the purposive method sampling obtained 18 companies that met the criteria. Test methods that multiple linear regression analysis is used. The results show that the Current Ratio, Return On Assets affects Profit growth. Meanwhile, Debt to Equity Ratio has no effect on profit growth. The benefits of this research are provide understanding to investors by looking at the role of current ratio, Return On Assets, and Debt to Equity Ratio to profit growth run the company so that investors can make decisions in invest appropriately.

Determine The Factors That Influence Profit Growth at Village Credit Institutions in Badung District

“…A rise in the Return on Assets (ROA) value is expected to enhance the efficiency of the Village Credit Institution Badung Regency in utilizing VCI assets, hence potentially leading to an increase in Profit Growth. The findings of this study are consistent with the findings of Paramithari and Sujana (2022), Bimantoro and Ardiansah (2018), Dewi and Puspaningsih (2020), Mislinawati and Sari (2020), Hidayati and Marlina (2021), Ester et al (2022), Karelina et al (2022), Siswanto et al (2022), and Karim et al (2023. In essence, the findings of this study can serve as a foundation for the office manager of VCI to strategically utilize resources.…”

“…Previous studies have demonstrated a positive and significant relationship between Return on Assets and profit growth. This finding aligns with the findings of Karim et al (2023), Paramithari and Sujana (2016), Bimantoro and Ardiansah (2018), Dewi and Puspaningsih (2020), Mislinawati and Sari (2020), Karelina et al (2022), Hidayati and Marlina (2021), Ester et al (2022) and Siswanto et al (2022). Based on the above explanation, the aforementioned statement can be considered a hypothesis: H4: PG is positively influenced by ROA…”

“…This assertion aligns with the findings of Paramithari and Sujana's (2016) research, as well as the study conducted by Dewi and Puspaningsih (2020). According to Karelina et al (2022), the findings of the study indicate that Current Ratio has a detrimental impact on Profit Growth. In contrast to the findings reported by Pratiwi (2018), Purnawan & Suwaidi (2021), Saraswati & Nurhayati (2022), Sujana et al (2018), andRokayah (2022), who have demonstrated that the outcomes of their research indicate a lack of substantial impact of CR results on profit growth.…”

“…Furthermore, it will incorporate previous research findings pertaining to the influence of ROA on profit growth. The findings of several studies conducted by Karim et al (2023), Mislinawati and Sari (2020), Paramithari and Sujana (2016), Ester et al (2022), Hidayati and Marlina (2021), Dewi and Puspaningsih (2020), Bimantoro and Ardiansah (2018), Karelina et al (2022), andSiswanto et al (2022) together indicate that ROA has a statistically significant and beneficial impact on the rise of profits. The results of this investigation exhibit disparities when compared to the research conducted by Syafaat (2021), Habibah et al (2021), Sujana et al (2018), and other scholars who contend that ROA does not have a noticeable influence on the PG.…”

Pengaruh Profitabilitas, Ukuran Perusahaan, Dan Struktur Modal Terhadap Pertumbuhan Aset Perusahaan Properti Terdaftar Di Bursa Efek Indonesia

“…Hasil ini menujukkan bahwa peningkatan struktur mendukung peningkatan pertumbuhan aset, namun masih belum signifikan karena perusahaan property merupakan industri yang pergerakannya cepat merespon kondisi ekonomi yang terjadi, sehingga saat kondisi ekonomi memburuk akan membuat performa emiten perusahaan properti juga menurun dengan cepat. Anggapan bahwa struktur modal memiliki dampak yang positif pada pertumbuhan aset sejalan dengan penelitian (Karelina et al 2022). Hasil analisis yang telah dilakukan pada profitabilitas merupakan variabel yang memberikan dampak paling besar bagi pertumbuhan asset perusahaan.…”