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Journal : jurnal prajaiswara

Determinants of Profitability with Capital Structure as Moderator in Consumer Non-Cyclicals (2022–2024) Puspita, Dita Candra; Tiswiyanti, Wiwik; Jumaili, Salman; Mukti, Mukti
Jurnal Prajaiswara Vol. 7 No. 1 (2026): April 2026
Publisher : Badan Pengembangan Sumber Daya Manusia (BPSDM) Provinsi Jambi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55351/prajaiswara.v7i1.278

Abstract

Introduction/Main Objectives: Profitability is an important indicator in evaluating a company’s financial performance, particularly in generating profits and returns for investors. Background Problems: Profitability is a key measure of financial performance; however, the consumer non-cyclicals sector has experienced a decline in profitability in recent years. This condition reflects inefficiencies in managing company resources. Internal factors such as liquidity, solvency, and activity are considered to influence profitability, although previous studies have shown inconsistent results. Novelty: This study incorporates capital structure as a moderating variable in the relationship between liquidity, solvency, and activity on profitability in consumer non-cyclicals companies listed on the Indonesia Stock Exchange during the 2022–2024 period. Research Methods: This study employs a quantitative approach using secondary data obtained from 116 companies (348 observations). Data analysis is conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. Finding/Results: The results indicate that solvency has a significant negative effect and activity has a significant positive effect on profitability, while liquidity and capital structure have no significant effect. Furthermore, capital structure is unable to moderate the relationship between these variables and profitability. Conclusion: Overall, activity has the greatest influence on profitability compared to other variables, indicating that companies need to improve the effectiveness of asset management to enhance financial performance sustainably.
Co-Authors Achmad Hizazi Achmad, Muhardi Addawiyah, Maulidiani Afrizal Akbar, Awal Apriani, Tari Apriyanti, Nur Ulyana Arif Firmansyah B, Sylvia Kartika Wulan Berlin Dhamos Syahputra Silalahi Dahmiri Dewi Firdaus, Taufiq Akbar Dewi Fitriyani Diah Restu P Diana Safutri Disya Yuke Farhana Dwi Annisa A Eko Prasetyo Elisa Rama Yanti Enggar Diah PA Enggar Diah PA Enggar Diah Puspa Arum Febro, Zahra Rasyanda Fithri Salsabila Fitrini Mansur Fredy Olimsar FRIYANI, RITA Gowon, Muhammad Hamdani, Ahmad Hamzah Hamzah Hamzah, Hamzah Haryadi Haryadi Heni Pujiastuti Hernando, Riski Ihwana, Sandy Ikhsan M., Muhammad Ilham Wahyudi Indah Aurelia Iskandar Sam Istiqomah Melinda Jayawarsa, A.A. Ketut Juantara, Billy Akbar KARTIKA WULAN BHAYANGKARI, SYLVIA Kartini, Puti Tri Khairunnisa Khairunnisa Khaldun, Muhammad Hafidz Ibnu Khoirany Kurnia, Reni Indah Kurniawan, Rafmil M Sholihin M. Furqon Mila Novriani Misni Erwati Monica Zuanur Safitri Muhammad Raghib Ardianto Muhlis, Fatkur Mukhzarudfa Mukhzarudfa Mukhzarudfa, Mukhzarudfa Mukti, Mukti Mulyani, Suci Nababan, Carmelita Namira Putri Aninda Natalia Fitria Revini Pranata Nela Safelia Netty Herawaty Nur Puspita, Lovia Oki Permata Osman, Rani Nur Az-zahra Puspita, Dita Candra Putra, Dios Nugraha Putri, Kartika Malika Putri, Vigga Alifah Rachmawati, Devy Rahayu Rahayu Rahmat Da’i Rainiyati Rainiyati ramadhan, Muhammad Gema Ratih Kusumastuti Reka Maiyarni Reni Indah Kurnia Reni Yustien Reni Yustien Rico Wijaya Z Riski Hernando Rizaldi, Sendy Rizki B, Anisa Salman Jumaili Salsa Vonni Indrayani Sam, Iskandar Senusi, Novita Sintia Marselina Siregar, Ermina Siswahyudianto Sri Rahayu SRI RAHAYU Sri Wahyuni Sri Widiyati, Sri Susfa Yetti, Susfa Susfayetti Suswita Roza Thamrin, Wisnami Syakhira Tuti, Srimastuti Velindi Simarmata, Yana Wahyu Hidayat Warislan, Putri Wendry, Widyasari Widya Sari Wendry Wiralestari Wiralestari, Wiralestari Wiralestari, Wiralestari Wirmie Eka Putra Yudi Yudi Yudi Yulianti, Melly Maragretha Zulma, Gandy Wahyu Maulana