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Journal : Maneggio

Analysis of The Effect of Liquidity Ratios, Solvency and Profitability on The Company's Financial Performance Wuryanti, Lestari; Rosalia, Olyvia; Firayani
Maneggio Vol. 2 No. 2 (2025): Maneggio-Apr
Publisher : PT. Anagata Sembagi Education

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62872/h20q8p66

Abstract

This study aims to analyze the effect of liquidity, solvency, and profitability ratios on the financial performance of manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2023 period. Financial performance is measured using Return on Equity (ROE) as the dependent variable, while the independent variables consist of the Current Ratio (CR) as a liquidity indicator, the Debt to Equity Ratio (DER) as a solvency indicator, and Return on Assets (ROA) as a profitability indicator. The research method used is a quantitative approach with multiple linear regression analysis, using SPSS software. The results indicate that simultaneously, the three financial ratios significantly affect ROE. Partially, ROA has a significant positive effect on ROE, DER has a significant negative effect, while CR has no significant effect. These findings indicate that profitability is the dominant factor in improving a company's financial performance, while an unbalanced debt structure tends to lower performance. Therefore, companies need to balance asset utilization efficiency and debt management to sustainably enhance firm value.
Co-Authors Ade Suryani Nasution Afifah, Niken Dilla Agung Wibowo Agustiana, Rika Agustiana Alam, A. Aminullah Anita Anita Annisa, Meisya Arnes Yuli Vandika Baehaqi Bambang Purwanto Dewi, Wuri Astamala DIAN FEBRIANTI DODY KURNIAWAN Eka Fitriani Erna Listyaningsih Euis Mufahamah Fatih, Muhammad Al Febrianti Febrianti Febrianty, Febrianty Ferani, Ferani Firayani Fitri, Cut Fitria, Arie Golam, Mohamad Yusuf Harold Kevin Alfredo Harun, Harmani Hasibuan, Kalijunjung Hermawan, Dessy Hermayana, Anis Iing Lukman Indriani, Wiewiek Irianto, Gunawan Joko Ariawan Kartika, Isma Khotimah, Ayyumi Khusnul Laurenza, Dinda Lestari, Febriana Dwi Lestari, Tria Lingga Ramadan, Arya Rama Mahesa, Valka Fajar Majid, Sugiarto Mandasari, Mesie Mas'ud, Biyan Naufal Mayasari, Nanny Muhammad Muhammad Mungkas, Ihfa Naufal, Faiz Akram Ahmad Nita Rahmawati, Nita Nurdiansyah, Ridho Nurlia, Risa Ohara, Muammar Revnu pangestu, alang Piya, Eni Okta Pramujati, Galih Iman Pratama, Bagas Putra Pratama, Reza Hardian Putri Novita Sari Putri, Fadillah Amanda Rahmawati, Hamida Nur Rahyono Rahyono Ramadhan, Elfin Lazuardi Rezania Agramanisti Azdy, Rezania Agramanisti Rino Rino Rizki Agung Wibowo Robani, Sholahuddin Rosalia, Olyvia Salsyabilla, Nyimas Dinda Sanjaya, Jeffry Alvian Saputra, Rengga Desca Sari, Nita Permata Sari, Sylvia Devita Suhara, Ade Sukawati, Aprilia Dwi Sya'ban, Gema Awal Syarief Hidayat Tarandung, Christian VAHERA, ANYELIR ALIYA Vani, Wulan Septio Wahid Wahid, Wahid Wangania, Diana Yonasari, Armita Zahara, Yeni