The Influence of Funding Decisions, Investment, and Liquidity Decisions on the Profitability
1Annaria Magdalena M, 2Bintang Sahala Marpaung , 3Amanda Meilan Purbasari
1,2,3Management Study Program, Faculty of Business, Institute Business and Informatics Kesatuan
https://doi.org/10.47191/jefms/v7-i2-03ABSTRACT:
Companies must always strive to maximize their income in getting results and levels of profit. Companies can maximize their advantages if financial management knows the factors influencing profitability. Profit plays a massive role in determining whether a company will experience difficulty or can continue to survive in the industrial world. This study aimed to determine the influence of Debt to Equity Ratio (DER), Total Asset Growth (TAG), and Current Ratio (CR) on Return on Assets (ROA) in food and beverages sub-sector companies listed on the Indonesia Stock Exchange for the period 2017- 2022. This research method uses quantitative methods. A total of 16 companies were included in the sample study. These samples were taken using a purposive sampling method. Hypothesis testing in this research uses panel data analysis with the E-views 12 program. This research shows that DER, TAG, and CR. influence ROA, and partially, DER harms ROA, but TAG and CR. partially do not influence ROA.
KEYWORDS:
Debt to Equity Ratio, Total Asset Growth, Current Ratio, and Return on Assets.
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