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Journal : International Journal of Enterprise Modelling

Determinants Of Firm Profit Growth: Net Profit Margin As A Moderating Variable Wulan Dari, Ranti; Santoso, Hadi
International Journal of Enterprise Modelling Vol. 19 No. 3 (2025): September: Enterprise Modelling
Publisher : International Enterprise Integration Association

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35335/int.jo.emod.v19i3.152

Abstract

This study examines the relationship between the financial ratios of total asset turnover (TATO), debt to equity ratio (DER), and operating profit margin (OPM) on the dynamics of corporate profit growth, with net profit margin (NPM) serving as a moderating variable. The study utilizes secondary data obtained from the financial statements of companies in the food and beverage sub-sector listed on the Indonesia Stock Exchange for the period 2020–2024. A total of 45 companies were selected as samples using a purposive sampling approach, resulting in 230 observation units. A moderation regression approach was employed to test the research hypotheses. The findings indicate that DER and OPM have a significant positive effect on profit growth, while TATO's positive impact is statistically insignificant. Furthermore, NPM strengthens the relationship between OPM and TATO with profit growth, but does not moderate the relationship between DER and profit growth. These findings suggest that capital structure, profit margin management, and operational efficiency are key factors in driving profit growth. Meanwhile, asset utilization effectiveness has yet to produce a direct significant impact in the food and beverage sub-sector.
Co-Authors A.A. Ketut Agung Cahyawan W Abdul Muis Prasetia, Abdul Muis Adiwena, Muh. Afiyati, Afiyati Ahmad Ridwan Aldri Frinaldi Alfariz, Muhammad Alkam Aminatuz Zahroh, Nuril Amirul Mukminin Andhitiyara, Revan Andi Rosman N Andrew Joewono, Andrew Anjelika, Anjelika Argubi, Adi Hidayat Arie Linory Arif Arif Bambang Jokonowo Cahyo, Yosef Ceffiriana, Paramita Destiyani, Arvina Dewi, Sita Dian Retno Sari Dewi Dian Trihastuti Dumendehe, Tri Dianingsi DWI SANTOSO Dwifi Aprillia Karisma Eva, Lidwina Fadilah, Ahmad Nur Febrianto, Rizky Fitria Hidayati, Fitria Francisca Hermawan Gabriela Raring, Paulina Ganishti, Fairly Sekar Gunadhi, Albert Hamidah, Nur Khusnul Hanafi, Roy Hanif, Sholahuddin Hartono Hartono Hartono`, Hartono Hidayatullah, Syahrul Hilyah Magdalena Hursepuny, Johan Ibrahim, Maulana Idum Satia Santi Ig. Jaka Mulyana Imaman, Rahardian Aulia Imbuh Rochmad Ineputri, Aprilia Loika iromo, heppi Ivan Gunawan Jaya, Akbar Jerius, Rusli Juhri, Juhri JULIANTO Julius Mulyono Karisma Riskinanti Kartina Kartina Kismanti, S. T. Leonita, Litha Lestari, Mulyati Lestariningsih, Diana Listyowati, Dwi Lukman Hakim Lukman Hakim Manoe, Wahi Silvana Marhadi Budi Waluyo Marpaung, Oktavia Muhajirin Muhajrah, Muhajrah Muhammad Noor Asnan Munandar, Is Murdianto, Deny Napitupulu, Bertha Elvy Nasir Nasir Natalia, Evy Novrizal, Kevin Nur Rohmah Lufti A'yuni Nurdin, Muh. Firdan Nurdin, Muhammad Firdan Nurhafida, Alisa Nurwijayanti Pakiding, Sakti Paramita, Gemala Perkasa, Eza Budi Prasetya, Andre Puspitasari, Nurrisma Puspitojati, Endah Putrandy, Leonardo Rahmah, Nia Ridwan, Rasmawati Rosmiati Rosmiati S, M Rizal Samsuri Tarmadja, Samsuri Santi Yatnikasari Sari, Yunita Sartika Septryanti, Ade Setiyo Budiyanto Shinta Tri Kismanti Sianto, Martinus Edy Silalahi, Prayoga Raja Lambok Subekhi, Dimas Sudirman Sudirman Suryapradana, Ilmawan Umami, Umami Valeria Vivi Silvia Vebrian, Vebrian Waluyo, M. B. Waluyo, Marhadi Budi Wennadi, Luky Yunia Wulan Dari, Ranti Yanuarti, Elly Yolanda, Agusius Yuliati -