JEFMS Journal

ABSTRACT:

This study aims to examine the factors that can affect profitability, which are liquidity (current ratio), solvency (debt to equity ratio) and working capital turnover. The population in this study was 28 food and beverage companies listed on the Indonesia Stock Exchange (IDX) period 2019-2021. The sample obtained was 19 companies using the sample selection method, which is purposive sampling. The tests carried out in this study were descriptive statistical tests, classical assumption tests, which are normality test, multicollinearity test and heteroscedasticity test and hypothesis tests, which are t test, f test and coefficient of determination test using Eviews 9. The results of the study state that partially (t-test) liquidity has no effect and insignificant on profitability, solvency has a negative and significant effect on profitability, working capital turnover has a positive and significant effect on profitability in food and beverage companies listed on the Indonesia Stock Exchange (IDX) period 2019 -2021. The simultaneous research results (f test) state that there is a significant effect of liquidity, solvency and working capital turnover on profitability in foods and beverage companies listed on the Indonesia Stock Exchange (IDX) period 2019-2021.

KEYWORDS:

Current Ratio, Debt to Equity Ratio,, Working Capital Turnover, Profitability.

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