The Effect of Financial Leverage, Operating Leverage and Current Ratio on Profitability at PT. Manunggal Persada Jakarta

Abstract

Funds can be obtained from company owners or from outside parties. The purpose of this study was to determine the effect of financial leverage, operating leverage and current ratio on profitability at PT. Manunggal Persada Jakarta. The method used in this research is descriptive with an associative approach, the sampling technique used is proportional random sampling using the census or saturated sampling method with a sample of 7 years of financial statements. The analysis tool uses classical assumption testing, regression testing, determination coefficient testing and hypothesis testing. The results of the study concluded that the regression coefficient value of Financial leverage of 0.005 was positive with a contribution of 19.3%. Hypothesis testing obtained a significance value of 0.324> 0.05. Regression coefficient value of Operating leverage of 0.001 is positive with a contribution of 16.5%. Hypothesis testing obtained a significance value of 0.368> 0.05. Current coefficient regression value of 0.158 is positive with a contribution of 31.9%. Hypothesis testing obtained a significance value of 0.187> 0.05. Obtained a regression equation Y = 0.110 + 0.009X1 + 0.001X2 + 0.177X3, the regression coefficient value of each positive independent variable with a correlation of 0.927 and a coefficient of determination of 85.8% while the remaining 14.2% is influenced by other factors. Hypothesis testing obtained by calculating Fcount> Ftable or (6.064> 4.120). Thus simultaneously there is a positive and significant effect between financial leverage, operating leverage and current ratio to rentability.

Effect of Return On Assets, Return On Equity and Earning Per Share on the price of shares at PT. Gajah Tunggal tbk

“…Companies that have good achievements can improve their company performance which is reflected in the company's financial statements, so investors will be interested in investing in the company. Increasing investor demand for these companies will cause the price of the company's shares to tend to increase as well (Jati, 2019).…”

“…Factors that can affect the ups and downs of a company's stock price are internal factors and external factors of the company. This study uses company internal factors as reflected in the company's financial statements (Afriyanti et al, 2020;Jati, 2019;Kencana, 2020;Tumanggor, 2020). The company's internal factors are used in the form of financial ratios such as profitability ratios that are proxied by Return on Assets (ROA), Return on Equity (ROE) and market ratios that are proxied by Earning Per Share (EPS).…”

The Effect of Product Prices and Promotions on Purchasing Decisions of Mitsubishi Brand Cars at PT. Srikandi Diamond Motors, Tangerang Branch

“…In the current era of globalization, competition in the automotive industry is very tight, as evidenced by the number of car brands that exist on the highway in the Tangerang area in particular (Astuti & Lestari, 2019;Jati, 2019;Rozi, 2020;Suyatin, 2019). With so many brands that exist, making the company try to how to be superior to its competitors.…”